LEGISLATIONS

Term 1
8 Acts to be dealt with.

 Skills Development Act (SDA)

 Labour Relations Act (LRA)
 Employment Equity Act (EEA)
 Basic Conditions of Employment Act (BCEA)
 Compensation for Occupational Injuries and Diseases Act (COIDA)
 Broad Based Black Economic Empowerment Act (BBBEE)
 National Credit Act (NCA)
 Consumer Protection Act (CPA)
VERBAL EXERCISE

 SDA
 LRA
 EEA
 BCEA
 COIDA
 BBBEE
 NCA
 CPA
Common objectives. ( by the way we
have 8 Legislations)
Purpose of the Act
Impact of the Act on business.
Discriminatory actions
Penalties of Non compliance.
Ways that business can use to COMPLY
 THE SKILLS DEVELOPMENT ACT.
Purpose of the Skills Development Act
 Develops the skills of people in South Africa in order
to improve productivity.

 Invests in education and training of workers

 Encourages workers to participate in learning

programmes.

 Encourages businesses to improve the skills of their

workers
IMPACT OF SDA ON BUSINESSES

Advantages Disadvantages
 Trains employees to improve  Skills programmes may not
productivity in the workplace. always address training needs
of employees.
 Promotes self-employment
and black entrepreneurship.  Skills Development Levy could
be an extra burden to
 Increases the number of skilled financially struggling
businesses.
employees in areas where
these skills are scarce.  The time and money spent on
improving employee skills is
wasted if they leave the
business.
Discriminatory actions according to the SDA

 Preventing employees from signing for a learnership due

to their age or position in the workplace.

 Unfair promotion of skills and development/training to

certain employees.

 Providing employment services for gain without being

registered as an employer.

 Furnishing false information in any prescribed document.

Penalties for non-compliance

 Businesses that do not pay the Skills Development Levy

may not offer learnerships/claim grants from the SDA.

 A labour inspector could order the business to stop

operating should the business be found guilty of illegal
practices.
Ways in which businesses can comply
with the SDA
 Employers should submit a workplace skills plan and
provide evidence that it was implemented.

 Businesses with more than 50 employees must appoint a

skills development facilitator.

 Assess the skills of employees to determine areas in

which skills development are needed.
ROLE OF SETAs
(Sector Education and Training Authority)

 Report to the Director General.

 Promote and establishes learnerships.

 Register learning programmes.

 Collect levies and pays out grants as required.

 Funding of SETAs

 Skills Development levies are paid by employers to SARS

as a collecting agency.

 Employers who have a salary bill that exceeds R500 000

per annum, should pay one percent (1%) of their annual
salaries as a levy.

 Surplus funds from government institutions.

Meaning of learnerships

Learnerships are practical training opportunities

that can lead to a recognised occupational
qualification.
They provide structured learning programmes
that are completed during work hours for a
specified period.
Agreement between a trainee, employer, and a
training provider.
 Explanation of…
National Skills Development Human Resources Development
Strategy Strategy
 Increases access to programmes  Improves the supply of skills.
that train people.

 Build career guidance centres.  Increases employee participation in

lifelong learning.
 Increase the skills of the public  Addresses skills shortages in the South
sector to improve service delivery. African workplace.
Essay

 Outline the role of SETAs

 Elaborate on the meaning of learnership.
 Discuss the impact of SDA in businesses.
 Suggest ways in which businesses can comply with SDA.
Labour Relations act
COMMON OBJECTIVES?
Purpose of labour relations Act

• Promotes collective bargaining at the workplace.

• Promotes fair labour practice between the employers
and employees.
• Promotes workplace forums to accommodate
employees in decision making.
• Promotes simple procedures for the registration of
trade unions and employer organisations
IMPACT OF LRA ON BUSINESSES.

Advantages disadvantages
• Promotes a healthy • Many employees take
relationship between the advantage of the right to
employer and employees strike without
acknowledging their
• Provides mechanisms responsibilities.
such as collective • Many employees and
bargaining/ CCMA. employers do not
understand the Labour
Relations Act.
Discriminatory actions according to the
LRA
• Dismissing employees unfairly or illegally

• Preventing employees from forming and joining trade

unions.

• Preventing employees from participating in legal strikes.

• Forcing employees to give up trade union membership

and representation.
Penalties for non-compliance with the
LRA
• The employer may be forced to enter into a dispute
resolution process. if they do not willingly participate.

• Businesses that neglect to comply with the LRA may

receive large fines if they fail to meet the agreements
reached during the dispute resolution process.

• The business’s licence may be revoked, which may

prevent the business from continuing any form of
operations.
 Ways in which businesses can
comply with the LRA
• Fairness should be promoted,and employees should not
be unfairly dismissed.

• Allow the establishment of workplace forums.

• Any agreements made during collective bargaining

should not be ignored/ breached by employers.

• Businesses must allow employees to form trade unions.

 The rights of employers and employees
according to LRA
Rights of employers Rights of employees
 form employer organisations to  Employees may join a trade union of
represent them in labour related their choice.
matters.
 Embark on legal strikes as a remedy for
 lockout employees who engage in grievances.
illegal strike.
 Refer unresolved workplace disputes to
 Dismiss employees who are engaged the CCMA.
in an unprotected strike.
 Refer unresolved CCMA disputes to the
 Not to pay an employee who has Labour Court on appeal.
participated in a protected strike for
work they did not do during the strike.
EMPLOYMENT EQUITY ACT
COMMON OBJECTIVES?
 Purpose of the EEA

 The EEA allows employees who do the same work to be paid

equally.

 Advocates that employees who do work of the same or equal

value must be paid equally.

 Ensures equal representation in the workplace through the

implementation of affirmative action.

 Promotes equal opportunity and fair treatment in the

workplace.
 Impact of the EEA on business

Advantages Disadvantages
 Promotes equal opportunity and  Diversity in the workplace may lead to
fair treatment in the workplace. conflict.
 Other groups may not respect the skills of an
 Motivates employees because EEA appointment and it may lead to
the workforce is more diverse conflict.
 Fines/Penalties for non-compliant businesses
 Motivates employees because may be expensive for the business.
everyone has the same
employment opportunities
Penalties for non-compliance with the
EEA
 Businesses may face heavy fines for non-compliance.

 They can be ordered to pay compensation and damages to

the employee.

 A compliance order may be issued to businesses that do not

comply with the EEA.

 The Department of Labour may block non-compliant

companies from doing business with the government.
 Discriminatory actions according to the
EEA
• Refusing to employ young women because they would choose to
have children in the future.

• Refusing to employ a person because he/she has a disability

• Doing HIV testing unless justified by the Labour Court.

• Treating workers unfairly and incorrectly promoting affirmative action

in the workplace.
 Penalties/consequences for non-
compliance with the EEA
 Businesses may face heavy fines for non-compliance.
 They can be ordered to pay compensation and damages to
the employee.
 Labour inspectors may investigate about complaints
 Labour inspectors may conduct onsite visits, to interview
employees which can create a bad image for the business.
Ways in which businesses can comply with
the EEA
 Prepare an employment equity plan in consultation with
employees.

 Submit the employment equity plan to the Department of

Labour.

 Implement an employment equity plan.

 Compile employment equity plans that specify how

affirmative action will be implemented in the workplace.
Basic Conditions of Employment
Act/BCEA

Verbal exercise
How many Acts have we dealt with?
Name them.
Name the common contents of objectives in all acts.
Purpose of the BCEA

● Outlines clear terms and conditions of employment for

employers and employees.
● Set minimum requirements/standards for the employment
contract.
● Advance economic development and social justice for
employees
● Regulates the variations of basic conditions of employment.
Provisions of the BCEA

Hours of work/Work hours

Overtime
Meal breaks and rest periods
Termination of employment
Public holidays
Child and forced labour
Leave (There are 5 types of leaves)
 Provisions of BCEA.

Hours of work. Overtime

● Employees are not allowed to work for more ● Employees cannot be forced to work overtime
than 45 hours per week. but must agree to work overtime.

● Employees cannot work more than 3 hours overtime

● Employees may work 9 hours a day if they per day or 10 hours per week.
work five days or less per week.
● Overtime must be compensated as follows:
● Employees may work 8 hours a day if they
work more than five days a week. ● One and half times the normal rate of pay for overtime
worked on week days and Saturdays.

● Double the normal rate of pay for overtime worked on

Sundays and public holidays.
 Provisions of BCEA (cont)

Meal breaks and rest periods Public holidays

● Employees must have a meal break of 60 ● Employees must be paid for any
minute after five continuous hours of work. public holiday that falls on a working
day.
● The meal break can be reduced to 30
minutes by mutual written agreement,
● Employees may work on public
when working less than 6 hours per day.
holidays when there is a mutual
● A worker must have a daily rest period of agreement, and they are paid double
12 continuous hours/a weekly rest period the normal rate.
of 36 continuous hours which must include
Sundays.
 Provisions( cont)

Termination of employment Child and forced labour

● A contract of employment may only be ● It is illegal to employ a child younger than
terminated following 1 week’s notice, if the 15 years of age.
worker has been employed for six months or
less. ● It is also illegal to force someone to work.

● A minimum of 4 weeks’ notice must be given, if

the worker has been employed for a year or
longer.
 Leave

 Types of leave  Sick leave

 Annual leave  Employees are entitled to:
 Employees are entitled to:
● 30 days//6 weeks paid sick leave
● 21 consecutive days annual leave per year in a 3 year/ 36-month cycle.
or one day for every 17 days worked, one
● 1 day paid sick leave for 26 days
hour for every 17 hours worked.
worked during the 6 months of
● Annual leave must be granted within employment.
six (6) months after the leave cycle
ends
 Maternity leave Family responsibility leave
● Pregnant employee is entitled to 4 ● Three to five (3 to 5) days paid leave per
consecutive months of maternity leave. year on request in the event of the death of
the employee's spouse/ child.
● Pregnant employees are prevented from
performing work that may be hazardous to ● An employer may require reasonable proof,
themselves and the unborn child. before granting this leave.

● The starting date is usually any time from four

weeks before the expected date of birth or on
advice of a doctor/midwife.
Parental leave

● An employee irrespective of gender, who is a parent, is entitled to ten (10)

consecutive day's parental leave after the birth of his/her child.

● Parental leave is unpaid but the employee may claim from the
Unemployment Insurance Fund/UIF.

● The employer must be informed/notified at least one month before the

excepted due date of birth.
 IMPACT OF BCEA ON BUSINESSES.

Advantages Disadvantages
 Creates a framework of acceptable ● Employers and managers may not
employment practices e.g., work force employees to work more
hours.
than 45 hours per week, which may
● Specifies work hours to prevent result in a reduction in productivity.
exploitation of employees.
● BCEA forces businesses to comply
● Outlines minimum requirements that with any legal requirements, which
form the basis of employment may increase labour costs.
contracts.
● Employers cannot hire cheap
● Work hours are specified so that the labour, and therefore cannot
employer cannot exploit employees. exploit employees..
 Discriminatory actions according to the
BCEA
 Forbidding workers to discuss salaries with other workers.

 Preventing workers from having access to employment contracts.

 Preventing pregnant employees from legally taking maternity leave.

 Refusing to accept a valid medical certificate of a sick worker.

 Refusing to grant a worker family responsibility leave to support a

sick family member
 Penalties businesses may face for not
complying with the BCEA
 Businesses that neglect to comply with the BCEA may receive large
fines and may even be given a jail sentence, which will be
dependent on the severity of the non-compliance.

 They can be ordered to pay compensation and damages to the employee.

 Businesses may be taken to the labour court for a ruling.

 Labour inspectors may serve a compliance order by writing to the

Department of Labour.
Ways in which businesses can comply
with the BCEA
 Workers must receive double if they work during public
holidays/Sunday

 They must have a break of 60 minutes after five hours of

work

 Refrain from employing children under the age of 16, it is

illegal.

 Overtime should not exceed 10 hours per week.

Compensation for Occupational Injuries &
Diseases Amendment Act/COIDA
Purpose of COIDA

● Provides a comprehensive protection to employees who injured in the

course of performing their duties.

● COIDA applies to all casual and full-time workers who become ill/injured
due to a workplace accident/disease

● The type and severity of the injury will dictate the medical expenses and
other compensation that will be paid to employees.

● It provides for the establishment of a Compensation Board whose function

is to advise the Minister of Labour on the application/provisions of COIDA.
Impact of the COIDA on businesses

Positives disadvantages
● Promotes safety in the  Domestic/Military workers are not
workplace. covered.

● Workers who are

● Employees do not contribute temporarily/permanently employed
towards this fund. in foreign countries are not covered.
 Claiming processes are ● COIDA does not cover employees
relatively simple. in the South African National
Defence Force

● Claiming processes can be time

consuming.
Discriminatory actions according to COIDA

● Bribing employees not to report the accident/injury based on the grounds

of race.

● Employers who do not allow claims for injuries, discriminates against injured
employees.

 Employers that take too long to process claims/delay the claiming process.

 Failing to disclose all information to the Compensation Board when

accidents or injuries occur for specific employees.
Penalties for non-compliance with
COIDA
● Businesses that do not comply with COIDA may receive a compliance order. from the
Labour Court, which forces the business to comply with COIDA.

● Businesses can be forced to make large payments if they do not implement the
necessary precautions to reduce accidents and promote health and safety in the
workplace.

● Employees may take businesses to court for not registering them with the
Commissioner of the Compensation Fund.

● If businesses are found guilty of any misconduct, they will have to pay large
penalties/face imprisonment.
Ways in which businesses can comply with
the COIDA

 Ensure that the machinery is in good working condition.

● Register with the Compensation Commissioner and provide the particulars of the
business.

● Report all incidents causing injury of employees.

● Report all accidents, injuries, illnesses, and fatalities to the Compensation

Commissioner as they occur.

● Levies must be paid to the Compensation Fund.

Broad Based Black Economic
Employment Act/BBBEE
Purpose of BBBEE

● Enables wealth to be spread more broadly across all population groups.

● Aims at targeting inequality in the South African economy.

● Outline areas that would give the government a platform for bringing
equitable spread of wealth amongst all population groups.

● Allows for the development of Codes of Good Practice.

● Increases the number of black people who manage South African

businesses.
 Differences between BEE and BBBEE

Black Economic Empowerment Broad-Based Black Economic

(BEE) Empowerment Act (BBBEE)
 A government policy that may not always  An Act that is enforced/must be
be enforced. complied with by businesses.
 Benefitted only a few previously  Encourages a wider group of previously
disadvantaged people in the economy disadvantaged people – which includes
black women, people who are physically
challenged, youth, and people in rural
 This resulted in a few previously areas – to participate in the economy.
disadvantaged individuals sharing in the
 Aims to distribute the country’s wealth
wealth of the economy.
across a broader spectrum of society.
 Focused only on three pillars that did not
 Focuses on five pillars – which include all
include all previously disadvantaged
sectors of the society – especially the
people.
previously disadvantaged people and
previously disadvantaged communities.
REVISED BBBEE PILLARS(MOSES)

● Management control

● Ownership

● Skills development

● Enterprise and supplier development (ESD)

● Socio-economic development/social responsibility

 Implications of the revised BBBEE pillars on
businesses

Management control Limitations

● Appoint black people to ● Due to a shortage of skilled black
management. managers/directors, some
businesses find it difficult to make
● Involve black people in the decision- appointments this limits the growth
making processes. opportunities of the business.
● Ensure that black females are ● Businesses are directly penalised
represented in management. for not implementing this pillar.
 BBBEE Pillars( Cont)

Ownership Limitation
● include black people in ● Businesses find it difficult to find suitable
shareholding/partnerships/franchises. black business partners/shareholders who
can afford shares.
● encourage small black investors to
invest in big companies and share ● Many black people cannot afford shares in
ownership. companies/contributors to partnerships.

● created more opportunities for black

people to become owners and
entrepreneurs.
 BBBEE Pillars (cont)

Skills development Limitations/Barrier

● involve black employees in various skills ● Businesses often compromise productivity
development training programmes and as mentors have to use work hours to
initiatives. participate in training.

● provide learnerships and learning

programmes to black employees.

● go the extra mile to train staff where

learnership is not offered.
Enterprise and supplier
development (ESD) Limitation/barrier
● create jobs as ESD promotes and  BBBEE suppliers may be without good
supports local manufacturing. workmanship

● identify black-owned suppliers that  Businesses are forced to choose from a

are able to supply goods and services. smaller pool of suppliers.

● Support black-owned SMMEs by

contributing donations.

● support black-owned SMMEs to make

them more sustainable.
 Social responsibility Limitation
 contribute towards social investment  Businesses often are not knowledgeable
projects and community development. or experts in societal issues and social
responsibility and may result in the
● Businesses should focus on critical areas wastage of financial resources if not
investigated correctly.
which can affect growth and development in
the country e.g. poverty/unemployment etc.

● They should distribute scarce CSI resources

to selected beneficiaries in the community.
 Impact of the BBBEE on businesses

Advantages Disadvantages
● Provides a variety of business codes to  Some processes associated with
improve employment equity. BBBEE – if not monitored properly –
may lead to corruption/nepotism.
● Provides for enhanced human resources
● Investment/Ownership issues can
development through training and cause unhappiness amongst
development. existing shareholders/owners..

● Improves the image of the business ● Many businesses have been

because a good BBBEE rating attracts more disadvantaged due to BBBEE ratings
investors to the business as they may not be able to meet all
the scores.
Actions regarded as non-
compliance/discriminatory by BBBEE
 Failing to implement affirmative action to meet BBBEE responsibilities.
 Employers who fail to correctly implement affirmative action in the context
of employment equity meet BBBEE responsibilities.
 Employers who incorrectly implement the means to achieve the
requirements of the five BBBEE pillars.
 Promoting unsuitable people into a management position at the expense
of qualified PDPs. (previously disadvantaged people)
Penalties for non-compliance with the
BBBEE
● Business licenses may not be renewed, and authorisations may not
be issued

● A business can be banned from participating in government

contracts for 10 years.

● Businesses may be fined a fine of up to 10% of the company's

annual turnover.

● The state may decide not to renew business licences, revoke the
business licence, or refuse to grant authorisations to conduct
business activities
Ways in which businesses can comply
with the BBBEE
● Businesses must appoint black people in managerial positions.

● Outsource their services to BEE compliant suppliers.

● Develop small business /SMME’s through ESD

● Conduct regular skills development training with black

employees

● Sell shares to more black individuals within and outside the

organisation.
National Credit Act.
 Purpose of the NCA

 Promote a fair but competitive credit market.

● Promotes the responsible granting of credit by credit providers.

● Makes provision for the establishment of the National Credit Regulator/NCR

● Ensures that the credit providers are registered to avoid consumer

exploitation.

● Prevent discrimination and ensure credit is available to all consumers.

 Impact of NCA on Businesses.

advantages disadvantages
● Lower bad debts resulting in  Businesses struggle to get credit such as bank
better cash flow. loans/overdrafts

● Businesses that do not comply with the NCA may

● NCA Protects businesses against face legal action.
non-paying consumers.
● Debt collection procedures are more complex and
● Authorised credit providers may expensive.
attract more customers.
● Fewer customers buy on credit as it is more difficult
 Prevents reckless lending and to obtain credit.
prevents businesses from
bankruptcy. ● Increases the administration burden on credit
providers.
Discriminatory actions according to the NCA

● Refusing credit to customers based on any form of

discrimination such as race, gender, age, religion,
language, culture, or sexual orientation.
● Charging different interest rates to customers based on
gender/race

● Blacklisting customers without making efforts to recover the debt

● Granting credit recklessly to consumers and failing to explain

the credit contract to consumers.
 Penalties/consequences for non-
compliance with the NCA
● The National Credit Regulator may impose a fine/penalty on the business for non-
compliance.

● The business may not demand payment, sue or attach the clients salaries/assets.

● The business may not charge any fee under that specific credit agreement.

● The court may declare the granting of credit by the business reckless and may order
consumers not to repay the credit/or part thereof to the business
Ways in which businesses can comply
with the NCA

● Offer applicants pre-agreement statements.

● Disclose all costs of loan.

● Obtain credit records/checks of clients before granting loans.

● Businesses should be registered with the National Credit Regulator.

● Submit an annual compliance report to the National Credit

Regulator.
 Consumer rights in term of the NCA

 Consumers have a right to:

● Apply for credit and to be free from discrimination.

● Receive Information in plain and understandable language.

● Receive documents as required by the Act.

● Receive pre-agreement documentation before concluding any

credit transaction

● Obtain reasons for credit being refused.

Consumer Protection Act
 Purpose of the Consumer Protection Act

● Establishes national standards to protect consumers.

● Establishes a National Consumer Commission (NCC.

● Ensures that consumers are not misled by suppliers of goods.

● Promotes consumer safety by protecting them from hazardous

products.

● Ensures that consumers have access to information they need to make

informed choices.
 Impact of CPA on Businesses.

Advantages Disadvantages
● Safeguard businesses from ● Confidential business information
dishonest competitors. may become available to
competitors.
● Protect businesses if they are
regarded as consumers. ● Penalties for non-compliance may
be very high.
● Prevents larger businesses from
undermining smaller ones. ● Businesses may feel
unnecessarily burdened by legal
processes.
Discriminatory actions according to the
CPA
● Denying customers proper information about the product/services.

● Treating customers differently based on gender/age/race.

● Charging different and unfair prices to consumers for the same goods and services.

● Varying the quality of goods when selling in different areas is known as place
discrimination.

● Prioritising any consumer group over another when marketing/selling goods and
services

● Falsifying information such as country of origin, types of ingredients and expiry dates,
etc., about the product.
Penalties for non-compliance with the NCA

● Businesses that do not comply may receive a compliance order that forces
the business to comply with the CPA

● Licence of businesses may be revoked for unfair consumer practices

● Businesses may face fines or imprisonment for a period not exceeding 10

years which will be dependent on the severity of the non-compliance.

● A business may be requested by the NCC to suspend activities indefinitely.

● Businesses will be forced to compensate consumers in line with the extent to

which their rights have been violated.
Ways in which businesses can comply with
the CPA

● Disclose prices of all products on sale.

● Provide adequate training to staff on the CPA.

● Conduct training with all staff members and stakeholders on the

CPA.

● Implement measures that will facilitate complaints, e.g. suggestion

boxes

● Ensure that goods/services offered are of the same quality.

Consumer rights of the Consumer Protection Act

 Right to choose

 Consumers have the right to:

● choose suppliers and/or goods.

● shop around for the best prices.

● return goods that are unsafe/defective for a full refund

 PLEASE SUMMARIZE THE RIGHTS… 2
POINTS PER RIGHT WILLRight
BEtoENOUGH.
information about
products and agreements/Right to
Right to privacy and confidentiality disclosure and information
● Consumers have the right to stop unwanted ● Contracts and agreements should be
direct marketing. in plain language and easy to
understand.
● They can object to unwanted promotional e-
mails/telesales. ● Businesses should display prices
which are fully inclusive disclosing all
● They have the right to stop/lodge complaints costs.
about the sharing of their personal details.
● Businesses should label products
and trade descriptions correctly
 Right to fair/responsible
Right to fair and honest dealings marketing/promotion
● Suppliers may not use physical force or ● Businesses should not mislead
harass customers. consumers on pricing, benefits/uses of
goods.
● Suppliers may not give misleading/false
information. ● Consumers may cancel purchases
made through direct marketing within
five working days/cooling off-period.

● All information related to the country of

origin/expiry dates/ingredients of the
products should be disclosed/clearly
labelled.