Main Topic: Business Environments

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:

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]

• 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

• 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

• 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

• 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

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

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

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

• Hours between 18:00 – 06:00
• Must receive extra pay or get the same pay for less hours

• Paid holidays if the public holiday falls on a working day
• Work is by mutual agreement
• Paid at double the normal wage rate

• Up to 21 days continuous annual leave

• Up to 6 weeks paid sick leave during a 36 month cycle

• Pregnant women may take up to 4 months continuous maternity leave

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

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

• 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

• 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:

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]

• 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

• 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

• 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.

• 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

• It aims to accelerate the participation of black people in the economy by encouraging change in the following key areas of business:

• Integrated and coherent socio-economic process that directly contributes to the economic transformation of South Africa.
• BEE measured only:

• 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]

• 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.

• 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

• 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

• Promote access to finance for black economic empowerment.
• Empower rural and local communities by enabling their access to economic activities,

• Promote human resource development of black people through, for example, mentorships,

• Increase the extent to which communities, workers, co-operatives and other collective

• 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

• Consist of two empowerment elements that measures black participation in the economy through:

• It aims to accelerate the participation of black people in the economy by encouraging change in the following key areas of business:

6.10Justify the introduction of BBBEE in relations to 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

• 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

• Basic Human Rights linked to BBBEE

• Link between BBBEE and the human rights

• No employees should be discriminated against on the basis of:

• 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

• 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