Amended Construction Exempted Micro Enterprise (EME)
In terms of the Broad-based Black Economic Empowerment (B-BBEE) Amended Construction Sector Code, specific thresholds determine whether an entity is classified as an Exempted Micro Enterprise (EME) for Built Environment Professionals (BEPs) and Contractors. These thresholds are: Type Turnover Black Ownership Level BEP Below R6 Million Below 30% 5 BEP Below R6 Million 30% - 50% 4 BEP Below R6 Million 51% or more 2 BEP Below R6 Million 100% 1 Contractor Below R10 Million Below 30% 5 Contractor...
Maternity leave and failed pregnancies – what does the law say?
Although this is a sensitive topic, it is one that occurs regularly and is often handled wrong because of the ignorance of the law. The relevant law here is the Basic Conditions of Employment Act (BCEA). This Act, read together with the Constitution of South Africa, protects the rights of pregnant woman in the workplace. Section 25 of the BCEA stipulates that an employee is entitled to 4 consecutive months’ maternity leave. An employee may go on maternity leave at any time within 4 weeks...
Think like a lawyer: ask yourself these 5 questions when handling misconduct
Whenever you need to take disciplinary action against an employee for alleged misconduct there are 5 important factors you (the employer) should take into consideration. Before any action is instituted against an employee, ask yourself these 5 questions: Is there a rule? The obligation is on the employer to prove that he/she did implement a rule. For example, if there is a zero tolerance policy for certain misconduct, this rule should have been implemented before action is taken against...
How to handle broken goods according to the CPA
It often happens that, after purchasing an item, we discover that it is broken. Our first reaction is to return it to the shop we bought it from and get our money back, right? Not always. Section 56 of the Consumer Protection Act (CPA) provides an automatic warranty whereby all goods may be returned to the supplier without penalty and at the supplier’s risk and expense within 6 months of the purchase or delivery date, if those goods fail to meet the requirements of Section 55 of the CPA: They...
Fixed term agreements – know your rights
The Consumer Protection Act (CPA) has had a great impact on fixed term agreements in South Africa. Suppliers can no longer bind consumers to fixed term agreements as they did in the past. Section 14 of the CPA regulates fixed term agreements (though it doesn’t apply to all fixed term agreements). What are the rights of the consumer and the supplier in this regard? Let’s have a careful look at the CPA. The applicability of Section 14 of the CPA Section 14 of the CPA applies to all fixed term...
Negligence vs gross negligence
What is ordinary negligence? What is gross negligence? Is negligence a disciplinary offence? When is dismissal for negligence justifiable? If you can’t answer all these questions, read on. Gross negligence is a knowing and voluntary disregard of the need to exercise reasonable care, which is likely to cause foreseeable serious injury or harm to persons, property or the employer. It is a conduct that is extreme when compared with the ordinary. Negligence is a mere failure to use reasonable...
What is the BEE Commission?
As a result of fronting among business owners in all industries, the establishment of a Broad-Based Black Economic Empowerment (B-BBEE) Commission was announced in October 2015 by the Minister of Trade and Industry. The BEE Commission has a mandate to investigate and deal with fronting, fraud, and other BEE transgressions. Along with policing, fronting and fraud, the BEE Commission assesses BEE transactions and ensures that these contribute towards the long-term goals of the National...
How to transfer your business the right way
Section 197 of the Labour Relations Act (LRA), 1995 deals with transferring a business from one employer to another employer as a going concern. What constitutes a “going concern”? This question is not answered by the LRA but can be determined, it seems, by reviewing the following factors: The intention of the transferring parties. The continuity of the operation, for example, the business entity is still in existence after the transfer. The employees have been taken over by the new employer....
Expired or lapsed warnings when applying progressive discipline
The South African Labour author John Grogan states that employees have an obligation to provide the employer with their labour, to obey reasonable instructions, to act in good faith and perform their duties. The function of discipline in the employment context is to ensure that the individual’s employees contribute effectively and efficiently to the goals of the company. Progressive discipline and dismissal In terms of the Codes of Good Practice dismissal must be seen as the last resort. A...
Protecting your employees against Sexual Harassment
As an employer you have a duty to ensure a safe working environment for your employees - this includes protecting your employees against potential sexual harassment. The Employment Equity Act No 55 of 1998 (EEA) classifies harassment based on sex or gender as unfair discrimination which is strictly prohibited in the workplace. The legislature introduced the Code of Good Practice on Sexual Harassment which is aimed at assisting employers in combating sexual harassment in the workplace. The code...