During April 2019 the B-BBEE Commission declared that a majority of transactions involving broad-based trusts deviates from the law and do not constitute genuine and effective black ownership. These transactions involving trusts, BBOS and ESOPs did not meet the rules set in Statement 100 Annexes (B)-(D), and thus cannot be recognised for ownership points. The commission has informed those companies not complying to rectify their ownership structures and undergo a re-evaluation on...
LATEST
General requirements for a fair dismissal based on misconduct.
Schedule 8 Item 7 of the Code of Good Practice: Dismissal (Labour Relations Act) states that to determine whether a dismissal is fair, the following needs to be considered: If the employee contravened a rule or standard regulating conduct in or of relevance to the workplace and;If a rule or standard was contravened: whether that rule or standard was valid or reasonable;the employee was aware or could reasonably be expected to have been aware of the rule or standard;the rule or standard has...
Submitting false documentation
Submitting false documentation is a serious offence which warrants a hearing, sadly employers are often lost when trying to establish if medical certificates are valid and this misconduct is often overlooked. Both section 23 of the Basic Conditions of Employment Act (BCEA) and Rule 16 of the Ethical Guidelines from the Health Professionals Council of South Africa (HPCSA) set out requirements for medical certificates. Rule 16 states: (1) A practitioner shall only grant a certificate of illness...
VALIDITY OF B-BBEE CERTIFICATES
The sub-element Preferential Procurement is important as points are awarded based on procuring from companies having good B-BBEE ratings. On most scorecards, it is noticeable that a large number of points are allocated to the sub-element Preferential Procurement. Therefore, the person/s appointed to collect suppliers B-BBEE certificates and/or sworn affidavits must ensure that the information received is correct. Below are some guidelines to assist your company when claiming points for the...
Trade Coupons and similar promotions
In terms of the Consumer Protection Act, a promotional offer means an offer or promise expressed in any manner of any prize, reward, gift, free goods or services, price reduction or concession, enhancement of quality of quality of goods or services, irrespective of whether or not acceptance of the offer is conditional on the offeree entering into any other transaction. It should be noted that a person must not make a promotional offer with the intention of not fulfilling it at all, or,...
‘Big Data’ explained
Big Data can be described as “representing the information assets characterized by such a high volume, velocity and variety to require specific technology and analytical methods for its transformation into value.” If we take Big Data and combine it with artificial intelligence and facial recognition, it has the ability to intrude on people’s lives on a considerable scale. One’s right to privacy has become a pressing human rights issue worldwide. Social media is being utilized by industries and...
The Fearful Witness who holds crucial evidence
A guide to in-camera proceedings. Intimidation and threats are common in the industrial sphere in South Africa. These actions often come about after serious misconduct is alleged to have been committed - dishonesty, unprotected strikes etc. Employees not only have to work in close conjunction with one another but often live close to each other and use the same transport home. Therefore, it is understandable when an employee is too frightened to testify in a hearing. An Employer cannot compel a...
The validity of a mutual separation agreement
Due to an increasing backlog at the CCMA and packed Court rolls, parties in a working relationship is encouraged to resolve their own labour disputes and to not make use of formal dispute resolution mechanism. This can be done by entering into a voluntary written settlement. Such a settlement agreement usually determines that the matter is settled in full between the parties and that the employee cannot approach the CCMA with unfair dismissal or unfair labour practice claim. However, this does...
B-BBEE AND FINANCIAL PLANNING
It is always important for a business to keep their B-BBEE up to date, not only by having a valid B-BBEE Certificate but also by doing the necessary financial planning and budgeting for the renewal of the B-BBEE certificate. Most entities have a February financial year-end which means that they are in the middle of the current financial year. Keeping this in mind it is important to plan and ensure that the correct amounts spend on the following B-BBEE elements: Skills Development;Enterprise...
B-BBEE knowledgeable about the new amendments.
The department of Trade and Industry (DTI) published notice 306 of 2019 Amended Code Series 000, Statement 000 in terms of Section 9 (1) of the Broad-Based Black Economic Empowerment Act 2003, (Act No. 53 of 2003) as amended by Act 46 of 2013 for implementation within 6 months from date of Gazette and replace Amended Code Series 000, Statement 000 within Gazette 36928 with the following Amended Code Series 000, Statement 000. The basis for measuring B-BBEE initiatives under the Codes is the...
