The employers guide to: Handling employees when you get liquidated
What happens to employees when a business goes bankrupt? In the normal sphere of the law, a business needs to start retrenchment proceedings if there is financial difficulties and there is no other way of getting around it. If a business is liquidated, the retrenchment process isn’t always followed. Section 38 of the Insolvency Act, as amended, is our primary legislation in dealing with employees during a liquidation procedure. Step 1: Suspension In a sequestration process, the employees’...
Restraint of trade – is it worth the paper it’s written on?
All employers should consider whether or not to include a restraint of trade in an employment contract. Companies normally include a restraint to ensure the financial future of a business. This is done without proper consideration being made to the needs of the company, what a restraint entails, when a restraint is applicable or when and how it is enforced. What to keep in mind before including a restraint of trade When considering a restraint of trade the company should first establish why...
Disappearing Data Bundles – NCC stands firm
At a recent public hearing on draft regulations proposed for data expiry and out-of-bundle billing, the National Consumer Commission (NCC) stated their view that data bundles should have a minimum expiry period of 3 years, in line with Section 63 of the Consumer Protection Act (CPA). In some cases in the telecommunications industry, data bundles expire as soon as 30 days after purchase by consumers. Questions have long been asked on the fairness of losing the use of goods or services already...
Everything you need to know about the new National Minimum Wage – soon to be a reality
After months of speculation over a compulsory minimum wage, the National Minimum Wage Bill was published on 17 November 2017 in the Government Gazette. Despite a long and complex parliamentary process, Government anticipated that the Bill will become an Act of Parliament by May 2018. What is the purpose of the proposed Act? The Act intends to rectify the unequal and huge disparities in income in the labour market. It is a mechanism to prescribe and to enforce a national minimum wage. What does...
A closer look at the Amended Agriculture Sector Code
The amended Agriculture (Agri) Sector Code was gazetted on 8 December 2017 and came into effect immediately. This Sector Code applies to any entity falling within the following scope of application: Primary production of agricultural products. Provision of inputs and services to Enterprises engaged in the production of agricultural products. Beneficiation of agricultural products, whether of a primary or semi beneficiated form (beneficiation is where value is added to a product). Storage,...
The need for cultural sensitivity training in the workplace
As recently highlighted in the media, the South African public are still very sensitive and highly reactionary when it comes to advertising campaigns that can be interpreted as racially or culturally insensitive. As a result of this miscommunication and misinterpretation, there has been a loss of both time, money and, perhaps most importantly, it has been damaging to the reputation of several companies. The reality is that different assumptions based on cultural differences can be a major...
Are our business owners using personal information lawfully?
With the Protection of Personal Information (POPI) Act still on billboards and in the news, most business owners are aware of it but they are still unsure of whether they are processing personal information lawfully. You might think, “How am I going to do what the POPI Act requires from me and grow my business at the same time?” This is not only possible, but it’s not as hard as many business owners think. Where does my compliance begin? Businesses need to work systematically through their...
The employers guide to: Alcohol and narcotics in the workplace
Many employers are faced with the problem of employees consuming drugs or alcohol at the workplace while on duty, or before reporting for duty, with all sorts of excuses such as it ‘is from the night before’ or it being ‘cough mixture’. How can employers best handle this situation? The solution is as simple as a proper workplace policy. Alcohol and drug consumption policy The employer’s policy should be clear - zero tolerance. It is advisable not to allow for limits in your policy. The policy...
How to use Private Equity Funds to better your BEE score
Broad-Based Black Economic Empowerment (B-BBEE) Ownership has become a reality to most companies operating in South Africa. As a result of the pressure for businesses to produce not only compliant BEE certificates, but certificates which provide a good score on the procurement element of their client’s BEE ratings, together with the downgrading of the recognition level of a business who does not comply with the sub-minimum requirement of 40% of the target on the Ownership element, businesses...
Ordinary working hours: be careful what you enforce
Employers often assume that their employees should be working 45 hours per week. Subsequently, they implement new contracts and use the phrase “but the law states you should be working 45 hours per week”. This is a common misconception in the workplace. While the Basic Conditions of Employment Act (BCEA) has certain prescriptions for working hours, it cannot be enforced blindly for all employees. Here’s why The BCEA’s specified working hours are NOT applicable to: Employees earning more than...