In the dynamic landscape of South African business, skills development within companies is not just a desirable attribute but a legal obligation. Just as the Financial Action Task Force (FATF) sets standards for global financial systems, South Africa's legislative framework requires companies to prioritise skills development. Non-compliance can lead to significant penalties, similar to those faced for not adhering to beneficial ownership regulations. What does Skills Development mean within a...

For companies with multiple shareholders, a Shareholders Agreement (and corresponding Memorandum of Incorporation) is essential. Here’s how it will benefit your business by addressing key areas: Ensuring Compliance: Enhances adherence to the Companies Act, offering greater clarity and structure. Managing Shareholder Disputes: Provides clear procedures for resolving conflicts among shareholders. Regulating Share Transfers: Specifies how shares can be transferred or sold, ensuring smooth...

In South Africa, Family Responsibility Leave is provided under Section 27 of the Basic Conditions of Employment Act No 75 of 1997. It allows employees to take time off in specific situations involving family needs. Here’s a straightforward guide to how it works: When Can Employees Use This Leave? Caring for a Sick Child Employees can take Family Responsibility Leave to care for a sick child under 18. This allows parents or guardians to be there for their child during illness. Death of a Family...

Navigating B-BBEE compliance can be tricky, but understanding the Modified Flow-Through Principle can help you increase your ownership score. Let’s break it down into simpler terms. What is the Modified Flow-Through Principle? The Modified Flow-Through Principle allows a business entity which has more than 51% black ownership in a multi-tiered structure to be treated as having 100% black ownership—but only once in the entire structure. This can boost your B-BBEE score without making any...

Learnerships are a crucial part of South Africa’s development, as they help develop skills, knowledge, and competencies that are essential for creating a competitive workforce. Learnerships are important in South Africa, where the economy is transitioning, and the need for skilled workers is increasing. Learnerships increase the level of productivity in the economy because workers who have been trained are more likely to be even more productive than those who have not had the same level of...

At the heart of the Protection of Personal Information Act (POPIA) lies the fundamental right of data subjects to have their personal information safeguarded whenever a responsible party processes it. POPIA mandates that responsible parties need to ensure the integrity and confidentiality of personal information, to prevent unauthorised access, loss, damage, or destruction of information. To achieve this, responsible parties must implement appropriate technical and organisational...

In the fast-paced world of business, our daily tasks often resemble a battlefield. Priorities clash for our attention, and Monday morning meetings serve as constant reminders that quality should be at the heart of our work ethic. Yet, amidst our overflowing schedules, it's easy to overlook the invaluable role of continuous training. Not only does it enhance the skills of our workforce, but it also provides a tangible financial benefit to our companies through grants. But which grant should we...

Understanding how to calculate the value of an employee's unused annual leave in Rand can be confusing for some employers. This can often lead to disputes when an employee leaves the company. The calculations and examples below are based on the Basic Conditions of Employment Act. Accrual of annual leave for employees working 5 days per week These employees should get 15 working days of annual leave, which adds up at 1.25 days per month. Accrual of annual leave for employees working 6 days per...

What is incitement? The definition of incitement in terms of labour law was affirmed in the case of Albion Services CC v CCMA (2013) ZALCD 12, where the court held that the test for incitement is whether the employee had the intention to reach and sought to influence the minds of his/her fellow employees. The court further held that the means adopted by the employee to incite the other employees are of second importance. Must the other employee be aware that their actions are unlawful? In...