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The Department of Employment and Labour has increased workplace inspections over the past two years to assess employer compliance with applicable labour legislation. To assist employers in managing labour relations within their businesses, several measures must be in place.
Registration
Employers are required to register with the Compensation Commissioner. This ensures that all injuries on duty are reported, and that employers and employees are compensated accordingly. Employers must also register with the Unemployment Insurance Fund (UIF) and ensure that all employees who work more than 24 hours per month are registered. The required UIF contributions must also be deducted from their remuneration.
Documentation
Employers need to pay attention to several important administrative tasks.
- Employment contract: This forms the basis of the employer-employee relationship, and sets out the terms and conditions agreed upon.
- Display of legislation in the workplace: All employers are required to display the most recent versions of the Basic Conditions of Employment Act, 1997 (Act 75 of 1997) (BCEA), Employment Equity Act, 1998 (Act 55 of 1998), and Occupational Health and Safety Act, 1993 (Act 85 of 1993) (if you have five or more employees).
- Personnel file: Such a file should include the employment contract, leave forms, payslips, disciplinary records (such as warnings for misconduct), copy of the employee’s identity document/passport and valid work permit, and his/her personal information and contact details. In terms of the BCEA, employee records must be kept for three years after termination of employment, unless the employee was under the age of 18, in which case it must be kept until the employee turns 18, plus an additional three years.
- Payslips: Employers are required to issue employees with payslips each time wages are paid. A payslip must include the following information:
- Employer’s name and address.
- Employee’s name, job title, wage rate, and overtime rate.
- Period of remuneration.
- Amount payable to the employee, and details of any additional payments and deductions.
- Actual amount paid to the employee.
- Number of ordinary hours, overtime hours, and hours worked on public holidays and Sundays.
- Employer’s UIF registration number and the employee’s contribution to the fund.
- Leave entitlement: Employees are entitled to annual, sick, family responsibility, parental, adoption, and commissioning parental leave. Employers must maintain accurate records of leave accrued, taken, and remaining for each employee.
Rules
Clear rules and guidelines in the workplace keep friction and misunderstandings to a minimum which, in turn, promote not only productivity but also a positive working environment. Workplace rules are implemented through the employment contract and policies.
A policy informs employees of the rule/s in respect of a certain topic to ensure the smooth and efficient running of business operations. Policies define the employer’s own rules, which must be reasonable, for example smoking, leave, hygiene, the use of cellphones, and the like.
The disciplinary code serves as a guideline for employers of what the appropriate sanction is for certain offences. These sanctions may vary depending on the circumstances and merits of each case, as well as how progressive discipline should be applied. The disciplinary code also ensures that all employees are aware of the rules that apply in the workplace and the consequences, should these rules be broken.
Procedures
By implementing and following the correct procedures, the employer can promote fair labour practices and further minimise the risk of disputes. It is advisable for employers to adopt procedures to address the following: disciplinary hearings, appeal procedures, grievance procedures, termination of service, appointment of employees, and injuries on duty.
Labour risk is a major business risk. To maintain the sustainability and profitability of a business, labour risk needs to be managed in a proactive manner. South African labour law is based on principles of fairness and equitability. – Christiaan Swart, senior legal advisor, LWO Employers Organisation
The LWO Employers Organisation assists employers to comply with labour law, and to use it to their advantage to protect their business. As a registered employers’ organisation with the Department of Employment and Labour, the LWO has the right to represent members at the Commission for Conciliation, Mediation and Arbitration (CCMA). Take note that this article is not legal advice – consult one of our legal advisors about any specific legal problem or matter. For more information, send an email to info@lwo.co.za or visit www.lwo.co.za
