BUSINESS STUDIES

GRADE 12

MAIN TOPIC: BUSINESS ENVIRONMENTS

TOPIC: RECENT LEGISLATION

4.BASIC CONDITIONS OF EMPLOYMENT ACT [BCEA] - 1997

4.1BCEA - Nature

  • Ensures that the rights to fair labour practices are put into effect.
  • Protect workers from violations of human rights.
  • The Act applies to all employers and employees.
  • The Act however, does not apply to the following workers:
- members of the National Defence Force;
- members of the National Intelligence;
- members of the South African Secret Service; and
- volunteers working for charities.

4.2BCEA - Purpose / Aims

  • Regulate basic conditions of employment for all employers and employees.
  • Set minimum standards for employment contracts.
  • Creates a framework for acceptable employment practices.

4.3BCEA - Impact [Advantages / Disadvantages] or [Positives / Negatives]

Advantages / Positives
  • promotes equal opportunity in the workplace;
  • promotes fair treatment in employment;
  • prevents unfair discrimination;
  • creates a framework for acceptable employment practices;
  • encourages consultation between employer and employee; and
Disadvantages / Negatives
  • process of ensuring that all employees have contracts can be time-consuming;
  • employees are restricted to a maximum number of hours that may work overtime per day and per week;
  • processes and procedures stipulated can be very costly to a business;
  • businesses are restricted within the framework of the BCEA; and
  • business cannot offer cheap labour.

4.4BCEA - Rights of businesses and employees

Right of the business / employers
  • Can decide to pay cash or give the employee time off I lieu of overtime worked
  • May require a medical certificate before paying a worker who was sick more than two days at a time or more than twice within a period of eight weeks
  • May ask for proof that an employee’s family responsibility leave was necessary, for example may request a death certificate

Rights of employees

1 / Working hours /
  • May not work more than 45 hours in one week
  • Maximum 9 hours a day for a 5 day week
  • Maximum of 8 hours for a 6 day week

2 / Overtime /
  • By mutual agreement between employer and employee
  • Max 3 hours a day
  • Max 10 hours a week

3 / Payment for overtime /
  • Weekdays & Saturdays – 11/2 times the normal rate
  • Sunday’s & Public Holidays – Double the normal rate

4 / Meal Breaks /
  • Meal break of 1 hour after 5 hours of work
  • May be reduced to 30 minutes by mutual agreement

5 / Night work /
  • Hours between 18:00 – 06:00
  • Must receive extra pay or get the same pay for less hours
of work
6 / Public Holidays /
  • Paid holidays if the public holiday falls on a working day
  • Work is by mutual agreement
  • Paid at double the normal wage rate

7 / Annual Leave /
  • Up to 21 days continuous annual leave

8 / Sick Leave /
  • Up to 6 weeks paid sick leave during a 36 month cycle

9 / Maternity Leave /
  • Pregnant women may take up to 4 months continuous maternity leave

10 / Job information /
  • New employee must receive a copy of their job description and working conditions
  • This includes salary information & deductions that will be made each month

11 / Remuneration /
  • Must be made on a regular basis as negotiated
  • Payslip containing details of payment must be issued to workers

12 / Termination of employment /
  • Notice of termination of employment by the employer must be in writing
  • Due notice must be given in terms of the time stipulate on the employment contract
  • Employee may challenge dismissal if they consider these to be unfair, through the CCMA and Labour Court

13 / Child Labour /
  • Unlawful to employ a child under the age of 15 years
  • No child under the age of 18 years may do work considered to be dangerous

4.5BCEA - Compliance

  • An employer may not force an employee to work overtime.
  • An employer must give new workers information about their job description and working conditions in writing.
  • Labour inspectors must issue a Compliance Order in the event of non-compliance by employers.
  • Labour inspectors must also report non-compliance to the Department of Labour.
  • Department of Labour will verify the facts and either agree with the order, or change the order or cancel it.

4.6BCEA - Penalties

  • The business could face fines and legal action from Labour Court.
  • Employers could be imprisoned for up to three years for an offence in terms of section 43 of the Act.
  • A business could be held liable by the CCMA or Labour Court for non-compliance.

4.7BCEA - Action regarded as discriminatory

  • Forbidding workers to discuss wages and salaries with co-workers
  • Preventing workers having access to employment contracts or conditions of work.
  • Refusing to accept the medical certificate of a worker who is sick.
  • Refusing to grant a worker family responsibility leave in the event of a family member becoming sick or dying.

4.8BCEA – Role of the government in compliance or promoting the BCEA

  • Government must assist with, and enforces,such compliance through a combination of advisory and enforcement measures to ensuredecent work for all.
  • The main role of labour inspection is the promotion of compliance with labour legislation
  • Labour inspectorates
  • are expected to assist management and workers in developing good labour practises and achieving social justice and decent work for all.

5.COMPENSATION FOR OCCUPATIONAL INJURIES AND DISEASES ACT [COIDA] – 1997

5.1COIDA - Nature

  • Provides or more comprehensive protection to employees who are injured in the course of performing their duties.
  • Employees who are injured on the job have the right to claim compensation from the fund.
  • Medical expenses and other types of compensation are paid to employees and / or their families.
  • Payment is made based on the type and severity of the employees injuries.
  • Injuries could be:
- temporary disablement;
- permanent disablement; an
- death.

5.2COIDA - Purpose / Aims

  • To protect employees and their families against injury or death that is the result of duties performed for the employer.
  • Protection is in the form of compensation for the employees and / or families for injuries or death that occur in the course of the employees' work duties
  • Employee must be a bona fida employee that is he / she must be legal employed.
  • Injury must have been caused by accident, while carrying out normal duties.
  • Applies to all employees that are permanent- and casual staff.

5.3COIDA - Impact [Advantages / Disadvantages]

Advantages
  • The employee can receive medical assistance should an accident occur, which lessens their financial burden
  • The Act promotes safety in the workplace
  • Employers are forced to take responsibility for creating a safe and healthy working environment
  • All employee are covered provided they fulfil the necessary requirements
Disadvantages
  • Dealing with Compensation Fund contributions and employee accident reports is an administrative burden to businesses
  • Contribution to the Compensation Fund can be a financial burden on businesses, especially small business.

5.4COIDA - Rights of employees and obligations of the employer

Rights of the employee
  • Right to make a claim for compensation.
  • Dependents have a right to receive compensation if a worker has died as a result of the accident.
Obligations of the employee
  • Provide healthy and safe working environment.
  • Ensure that the employees have adequate changing rooms, drinking water and seating.
  • Register with the Commissioner of the Compensation Fund.
  • Send record of wages paid and time worked by all employees to the Commissioner.
  • Pay a levy to the Commissioner each month for each employee.
  • Keep record of wages paid and time worked for a period of four years.
  • Ensure that the injured employee will be able to receive compensation.

5.5COIDA - Compliance

  • All companies must register their businesses with the commissioner of the Compensation fund.
  • At the end of the year the business must provide the commissioner with information on the workers employed, wages/ salaries paid to them.
  • These records must be kept safely for a period of four years.
  • Employers must register and submit annual returns.
  • Employers make sure their work environments are safe.
  • The employer must send the claim, medical report and any other relevant documents to the Commissioner within seven days of receiving it.

5.6COIDA – Penalties if a business does not comply

  • The Compensation Fund will recover costs from the employer or a civil law suit will be brought against the employer by the injured employee.
  • If businesses have a high accident record, they may be required to pay more to the Compensation Fund.
  • The employer may be fined for not notifying the commissioner within the specified time or failing to do so altogether.

5.7COIDA - The role of government in compliance or promoting COIDA

  • This function is performed by the Director General in Department of labour
  • Must inquire into accidents and occupational diseases;
  • Adjudicate on claims and other matters coming before him for decision;
  • issue an order for the payment of compensation in respect of an award madeby him;
  • Administer the compensation fund and the reserve fund;
  • After the conclusion of each financial year submit a report to the Minister

5.8.COIDA – Actions regarded as discriminatory

  • An employer may not bribe an employee to not report an injury.
  • An employer who does not pay the monthly contributions or submit the employees’ claims for compensation would be seen to be uncaring and discriminating against his/her worker.
  • An accident that is caused by the serious and wilful misconduct of an employee
  • An employer who fails to take the necessary precautions to ensure the workplace is a safe and healthy environment

6.BROAD BASED BLACK ECONOMIC EMPOWERMENT ACT [BBBEE] - 1998

6.1BBBEE - Nature

  • BBBEE is the cornerstone of the South African Government’s efforts to educate and
train the large sector of the population that was disadvantaged under apartheid rule.
  • It aims to accelerate the participation of black people in the economy by encouraging change in the following key areas of business:
- ownership,
- management and control,
- employment equity,
- skills development,
- preferential procurement,
- enterprise development
- socio-economic development.
  • Integrated and coherent socio-economic process that directly contributes to the economic transformation of South Africa.
  • BEE measured only:
•ownership; and
•representation in management.
  • BBBEE was developed in response to criticism of BBE.
  • BBBEE had to ensure a better spread of wealth across a number of South Africans.

6.2BBBEE – Purpose / Aims

  • Enable wealth to be spread more broadly
  • Outlines areas that would give the government a better platform for bringing about a better spread of wealth.
  • BBBEE Act is an enabling framework
  • Allows for the development of Codes of Good Practice

6.3BBBEE- Impact [Advantages / Disadvantages]

Advantages
  • A good BBBEE rating will improve the image of the business
  • Develops the employees’ potential and skills, and boost staff morale.
  • BBBEE can be used as a tool for marketing the business to other businesses looking for a BBBEE compliant supplier.
Disadvantages
  • Investment and ownership issues can cause animosity between shareholders.
  • It can lead to corruption and jobs for friends
  • Many employees get jobs based on BEE rating rather than on proficiency.

6.4BBBEE - Rights of employees

Rights of employees
  • Employed in senior, middle and junior management
  • Blacks with disability must be employed
  • Increased skill development expenditure on black employees
  • Increased number of blacks participating in learnership programmes

6.5BBBEE - Compliance

  • Use the services of verification agencies who issue certificates of compliances.
  • Increase the number of black employees managing and owning the business
  • Use suppliers who comply with BBBEE standards.

6.6BBBEE – Penalties for not complying with the BBBEE Act

  • Fronting will be penalise
  • Companies that do not comply with the employment equity ratios will be prosecuted and fined
  • It will be difficult for sectors (mining sector) to renew their licenses.

6.7BBBEE – Role of the government in promoting the BBBEE

  • Empower more black people to own and manage enterprises.
  • Achieve a substantial change in the racial composition of ownership and management
structures and in the skilled occupations of existing and new enterprises.
  • Promote access to finance for black economic empowerment.
  • Empower rural and local communities by enabling their access to economic activities,
land, infrastructure, ownership and skills.
  • Promote human resource development of black people through, for example, mentorships,
Learnerships and internships.
  • Increase the extent to which communities, workers, co-operatives and other collective
enterprises own and manage existing and new enterprises, and increase their access to
economic activities, infrastructure and skills.
  • Ensure that black-owned enterprises benefit from the government's preferential procurement policies.

6.8BBBEE – Actions regarded as discriminatory

  • Not employing a young woman because she will want to have children
  • Refusing to employ a person because they have strong religious beliefs
  • Does HIV testing unless justified by the Labour Court
  • Any person who is denied access to the workforce by being treated unfairly is being discriminated against.

6.9BBBEE –Distinguish between BBBEE and BEE

BEE / BBBEE
  • Consist of two empowerment elements that measures black participation in the economy through:
- equity ownership: and
- management representation in
businesses /
  • It aims to accelerate the participation of black people in the economy by encouraging change in the following key areas of business:
- ownership,
- management and control,
- employment equity,
- skills development,
- preferential procurement,
- enterprise development
- socio-economic development

6.10Justify the introduction of BBBEE in relations to BEE

BEE
  • Policy that was put in place by the government to give those who are classified as previously disadvantaged a chance to balance out the inequalities of the past
  • The objective was to right the wrongs of the past
  • Focus was on getting black people into management
BBBEE
  • Objective is to distribute the wealth of the country across all races and gender groups.
  • Focus was on increasing black ownership of businesses; increase the skills levels; increase the number of candidates in management positions who are blacks

6.11Discuss the obligations / principles of businesses in terms of their broad based approach

Human Rights /
  • Basic Human Rights linked to BBBEE
- Equality
- Respect and dignity
- Education
- Economic
- Social
  • Link between BBBEE and the human rights
Equality:
•Previously disadvantaged persons are given equal
opportunities√ for promotion/management/ownership in
the workplace.√
•Preferential procurement processes should be fairly
implemented√ to the benefit of previously disadvantaged
persons.√
•BBBEE Act should be implemented fairly at all levels√ to
ensure equality before the law.√
Respect and dignity:
•Previously disadvantaged persons are empowered by
skills development√ to improve their chances of better
employment/wages.√
•Black people are economically more active through
preferential procurement/entrepreneurial development√
and are able to live with dignity and respect.√
•Black people, who have been promoted to managerial
positions,√ have the right to be treated with respect and
dignity.√
Education:
•Skills development programmes√ promote the right to
education.√
•Skills development programmes/Learnership
programmes√ improve businesses' BBBEE scoring.√
Economic:
•BBBEE ensures√ that economic transformation takes
place. √
•Previously disadvantaged people√ are given a chance to
manage, own and control the economy.√
Social:
•Socio-economic development programmes√ should
include provision of houses/access to healthcare to
previously disadvantaged workers.√
Inclusivity /
  • No employees should be discriminated against on the basis of:
- race;
- gender;
- sexual orientation
- disabilities
- HIV status
  • The workforce must represent the demographics in the country
  • Preferential treatment should be given to Blacks, women, people with disabilities.
  • business’s
  • investment in the training and development ofits black employees.
  • Representation of black people at each level of management

Environmental Issues /
  • BBBEE is also concerned with the relationship between business and the environment in which blacks resides
  • The business should make Socio-economic development or CSR contributions to projects in Black areas that will impact positively on the environment.
  • Example: making funds available to ensure that the level pollution is reduced in rivers and the air in black areas