Chapter 1 BS MTG Edited
Chapter 1 BS MTG Edited
The government has introduced various Acts in response to demands for redress and equity,
in small and large businesses. This chapter covers the following Acts:
The above mentioned Acts regulate and protect the rights of consumers and businesses.
Effective implementation of the above-mentioned Acts will ensure a fair and orderly labour
and factor market.
TOPIC CONTENT CONTENT DETAILS FOR TEACHING,
LEARNING AND ASSESSMENT
PURPOSES
Impact of 8 Acts according to: Explain/Outline the purpose of each Act
recent Nature Explain the National Skills Development
legislation Aims/Purpose
Strategy and the Human Resource
on Impact on businesses
Development Strategy (i.e. Sector
businesses Compliance
Education and Training Authorities).
Penalties/consequences for non-
compliance. Outline/Explain the role of SETA’s
Actions regarded as discriminatory Explain how SETA’s are funded.
Implications of BBBEE Pillars Discuss the impact of each Act on
NCA & CPA consumer rights businesses.
Outline the BBBEE pillars
Explain the implications of BBBEE pillars
on businesses.
Explain penalties/consequences for non-
compliance with the Acts.
Outline/Explain actions regarded as
discriminatory by the various Acts.
Suggest/Recommend ways in which
businesses can comply with the Acts.
Outline/Discuss consumer rights in terms of
the NCA and CPA.
Learn the meaning
of these basic
concepts
Skills Development The main aim of this Act is to improve the skill levels of people who are
Act/SDA already employed in the business.
Skills Development It was introduced to ensure that businesses contribute to the
Levy/SDL development of skills of employees.
PDI’s Previously Disadvantaged Individuals or designated group.
Labour Relations This Act was introduced to promote simple procedures for the resolution of
Act/LRA labour disputes in the workplace.
Negotiations between employers’ association and trade unions on
Collective matters such as wages/conditions of employment.
bargaining
Collective Agreement between the employer organisations and trade unions.
agreement
Bargain councils It is formed by registered trade unions and employer organisations in order
to prevent/resolve labour disputes.
Employment Equity The main aim of this Act is to ensure that equal job opportunities are given
Act/EEA to all people regardless of race/culture/language/age/religion/disability etc.
Affirmative Action It was designed to ensure that suitable and qualified previously
disadvantaged individuals are given equal job opportunities.
Affirmative action forms part of the Employment Equity Act.
Basic Conditions This Act sets the minimum standard for employment in order to promote
of Employment fair labour practice.
Act/BCEA
Compensation for The Act gives employees who are injured or contract diseases while on duty the
Occupational Injuries right to claim compensation.
and Diseases
Act/COIDA
Broad-Based Black The Act was introduced in order to ensure full economic participation of
Economic previously disadvantaged individuals.
Empowerment
Act/BBBEE
National Credit Act This Act was introduced to protect consumers against unfair and reckless credit
granting by businesses.
Credit providers All businesses that offer goods and services on credit
National credit The NCR is responsible for the regulation of the South African credit industry. This
Regulator/NCR means that all businesses that offer good and services on credit must be registered
with the NCR.
Debt review/ Debt This is a debt solution targeted at South African consumers who are over indebted
counselling and struggling to manage their finances.
Consumer Protection The main aim of this Act is to promote/protect the economic interests of
Act consumers by providing them information so that they make informed
choices.
Compliance Acting according to a set of rules
Discriminatory actions Treating a person/people differently, from the way in which you treat other people.
1.2 The purpose of the Acts
Study this section
well
Ensure that you understand the purpose
of each Act before you study the impact of
the Acts on businesses.
1.1 Identify the Act implemented by Dinaledi LTD in each statement below.
1.1.1 People from different race were given the opportunity to apply for a vacant
post.
1.1.2 Costumers were educated about the company’s products.
1.1.3 New employees were given the opportunity to attend in-service training
courses.
1.1.4 Themba was advised to claim for injuries sustained while performing his
duties.
1.1.5 The company is registered with the National Credit Regulator. (10)
Max (8)
Impact means advantages AND/OR disadvantages
2.1 Study the picture below and answer the questions that follow:
2.1.1 Quote FIVE provision of the BCEA from the picture above. (5)
2.1.2 Explain the provision of the BCEA quoted in QUESTION 2.1.1 (10)
Hours of work
Workers may not work for more than√ 45 hours in any week.√
Workers may work nine hours a day√ if they work five days or less per
week√/eight hours a day√ if they work more than five days a week.√
Sick leave
Workers are entitled to:
Six weeks paid sick leave√ in a period of 36 months√/1 day paid sick
leave√ for every 26 days worked during the first six months of
employment.√
A medical certificate may be required before paying an employee who is
absent√ for more than two consecutive days/who is frequently absent.√
Overtime/Sunday work
Workers must agree√ to work overtime.√
Workers cannot work more than√ three hours overtime per day/10 hours
per week.√
Overtime must be compensated as follows:
o One and half times the normal rate of pay√ for overtime worked on
week days and Saturdays.√
o Double the normal rate of pay for overtime√ worked on Sundays
and public holidays.√
Rest periods
Workers must have a meal break of 60 minutes√ after five continuous
hours of work.√
This can be reduced to 30 minutes by written agreement√, when working
less than 6 hours per day.√
A worker must have a daily rest period√ of 12 continuous hours√/a weekly
rest period of 36 continuous hours√ which must include Sundays.
Max (10)
Skills Development Labour Relations Act Employment Equity Act Basic Conditions of
Act Employment Act
Employers who Businesses must Businesses must Workers should only
collect PAYE allow employees guard against work 9 hours per
should register to form trade discriminatory day in a 5 day work
with SETAs. unions/participate appointments. week./8 hours per
One per cent of in union Promote equal day in a 6 day work
an employer's activities/legal opportunities and week./Overtime
payroll has to strikes. fair treatment should not exceed
be paid over to Allow/Support the Reasonable 10 hours per week.
the SETA. establishment of accommodation of They must have a
Businesses workplace people from break of 60 minutes
should register forums. designated groups after five hours of
with SARS in Employees Ensure that there is work
the area in should not be equal representation Workers can take up
which their unfairly/illegally of all racial groups to six weeks paid
business is dismissed in every level of sick leave during a
classified (in Employers employment. 36-month cycle
terms of the should not Submit the Businesses should
SETA). breach/ignore employment equity not employ children
Employers any collective plan to the under the age of 16.
should submit a agreement Department of Workers must
workplace skills Disclose all Labour receive double if
plan and relevant Retain designated they work during
provide information groups, including public
evidence that it required by trade skills development holidays/Sunday
was union of such groups.
implemented. representatives
to do their jobs
effectively.
Labour inspectors may serve a compliance order by writing to the Department of Labour
The Director General may agree/change/cancel the compliance order.
Labour inspectors may investigate/inspect/ask questions about complaints and remove
records as evidence.
Businesses may be taken to the labour court for a ruling.
Businesses that are found guilty of non-compliance may face heavy fines/ penalties.
They can be ordered to pay compensation and damages to the employee
Activity 3
3.1 Read the scenario below and answer the questions that follow:
HARWICH MANUFACTURES (HM)
Harwich Manufactures specialises in the manufacturing of winter ladies clothes.
The management of HM employs fifty workers who are not allowed to join a trade
union. Credit is granted to customers without checking their financial status.
3.1.1 Identify TWO Acts that are applicable to the scenario above. Quote from the
scenario above to support your answers. (6)
3.1.2 Advise HM on how to comply with the Acts identified in QUESTION 3.1.1.
(12)
3.1.3 Mention TWO penalties that HM may face for not complying with the Acts
identified in QUESTION 3.1.1. (4)
ANSWERS TO ACTIVITY 3
Motivation
The management of HM has employed fifty workers who are not allowed to join a trade
union. √ (1)
Motivation
Credit is granted to customers without checking their financial status. √ (1)
4.1 Explain how businesses could apply the following pillars of BBBEE:
4.1.1 Enterprise and supplier development
4.1.2 Management control
4.1.3 Skills development
4.1.4 Ownership (16)
ANSWERS TO ACTIVITY 4
4.1.1 Enterprise and supplier development
Business must create jobs√ as ESD promotes local manufacturing.√
Businesses are encouraged to invest/support√ black owned SMMEs.√
Contribution can be monetary√, e.g. loans/investments/donations.√
Contribution can be non-monetary√, e.g. consulting services/advice/ entrepreneurial
programmes√, etc.
Outsource services√ to suppliers that are BBBEE compliant.√
Identify black owned suppliers√ that are able to supply goods and services.√
Develop the business skills of small/black owned suppliers√, e.g. sales techniques,
legal advice√, etc.
Support the cash flow of small suppliers√ by offering them preferential terms of
payment.√ Sub max (4)