Articles
What can South African Employers expect in 2012?
Employers are in for a tumultuous year in terms of changes to laws regulating the workplace. With proposed amendments to the Labour Relations Act 1995, the Basic Conditions of Employment Act 1997, the Employment Equity Act 1998, the likely introduction of the Employment Services Act, not to mentioned amendments to the Sectoral Education Training Authority (SETA) grant process and the introduction of the Broad Based Black Economic Empowerment (BBBEE) Amendment Bill, it promises to be a challenging year for employers and their efforts to keep pace with legislative change.
Proposed Labour Law Amendments – An Update
It is has been eight months since the Minister of Labour announced proposals to dramatically change South Africa’s labour legislation. Click HERE to read previous article.
Uncertainty around legislative change inhibits an employer’s ability to plan for future employment needs and practices and discourages investment and recruitment initiatives. So what has happened since the proposals were announced and what can we expect to happen in the future?
Sweeping Labour Law Changes Afoot
The Minister of Labour recently released proposals that will significantly change labour legislation in South Africa. The Basic Conditions of Employment Amendment Bill, the Labour Relations Amendment Bill, the Employment Equity Amendment Bill and the Employment Services Bill have the potential to represent the most fundamental changes to labour legislation since the African National Congress came to power in 1994 and will transform regulation impacting employee-employer relationships.
What follows is a summary of the proposed amendments, with a particular focus on the implications for employers.
Should You Be Fixing Your Employment?
The use of fixed-term employment agreements in the workplace varies dramatically from one company to another and between industries. At some point, most employers will have an occasion to consider their use and the following article discusses the advantages and risks involved as well as tips for correctly implementing fixed-term employment agreements.
R-Rated: A Practical Guide to Implementing Redundancy Programs
In these unprecedented times of global economic turmoil, many companies struggle to come to terms with the interwoven Rs words; recession and redundancy. South Africa is no exception to the global financial woes and trade unions in this country have already commenced action aimed at preventing job losses. Media reports state that some union bodies are actively lobbying President Motlanthe’s Government to enact changes to the Labour Relations Act (LRA) that will make it more difficult for employers to dismiss due to redundancy, whilst the National Union of Metalworkers have publicly called for a moratorium on retrenchments for any company that taps into the Government”s economic rescue package.
What follows is a “best-practice” guide for redundancies. It includes analysis of issues that need to be considered before redundancies are contemplated, the legal requirements for effecting redundancies and a discussion of the human resources issues that are central to the smooth implementation of redundancies programs.
Outsourcing Conflict Management – the External/Internal Workplace Mediator
There can be little doubt that employers continue to struggle with addressing conflict at the workplace. Statistics from the Commission for Conciliation, Mediation and Arbitration (CCMA) show that it deals with more than 100,000 cases each year; evidence that high-conflict situations are common practice in the South African workplace.
This article looks at the role of a workplace mediator and proposes that employers who regularly make use of mediation services can prevent disputes finding their way to the CCMA (or if applicable, an industry bargaining council). As the incongruous title suggests, it also argues that employers should consider outsourcing their conflict management efforts to a mediator that is both external and internal to the organisation.
Are Employees Part of Your Strategic Plan?
The following article discusses the need for strategic planning and for implementation timelines that are reflective of the size of the business. It also suggests that organisations should consider involving all levels of employees in the planning process and provides tips for making the jump from planning to implementation.
Slowing the Revolving Door
Human resource professionals worldwide have increasingly warned business of a skills shortage and South Africa, unfortunately, appears to be no exception to this global phenomenon. A skills shortage has a number of negative effects on the labour market. The most obvious ramification is the difficulty of filling vacant positions with qualified and experienced recruits. Equally significant is the challenge of hanging on to what youhave, that is, retaining top performers in times of skills shortages.
Very few South African companies are in a position to influence the lack of competent jobseekers. However, all employers can take steps to ensure that they slow the revolving door when it comes to employee attrition. If you have employees that you cannot do without, we can help you retain them.
Changes to the BCEA Threshold
The following is an important notice that affects all South African employers. One of the objectives of the Basic Conditions of Employment Act (BCEA) is to regulate working time. To achieve that objective, the BCEA includes provisions that place restrictions on hours of work and that give employees entitlements such as minimum rest periods and allowances for night work.
Hurting the Hip-pocket the Costs of Employee Turnover
One of the undisputed challenges facing business in South Africa is an apparent skills shortage (unless of course youre Jimmy Manyi, chairman of the Commission for Employment Equity, who takes the view that the skills shortage is an urban legend). Survey evidence in 2007 by accounting firm Grant Thornton showed that 58 percent of medium to large businesses said that a shortage of skills was a particular problem, while Deloitte released a report in June 2007 indicating that 81 percent of companies struggled to find appropriate staff. Unfortunately 2008 shows signs of the problem escalating, thanks to a rapid rise in emigration intentions among professionals and managers.
Employee Bonus Entitlements
The payment of employee bonuses can be a thorny issue for employers. Decisions concerning the quantum of bonuses, or whether they should be paid at all, must be made with due consideration to the company’s financial resources, questions of fairness and the expectations of employees. The following article seeks to assist employers by setting out the basic principles governing employee bonuses with a particular emphasis on the payment of a 13th cheque.
