What is a Letter of Good Standing? A Letter of Good Standing is a document issued by the Compensation Fund confirming that the employer is compliant with the requirements stipulated in the Compensation for Occupational Injuries and Diseases Amendment Act, No 10 of 2022 (COIDA). In short, it confirms that the employer is in good standing with the Compensation Fund (COID) and that there are no outstanding payments. Why a Letter of Good Standing? By being in possession of a Letter of...

As a business owner or employer in South Africa, making sure you comply with the Employment Equity (EE) Act isn’t just about following the law—it’s about building a diverse and inclusive workplace. Recently, Labour Minister Nomakhosazana Meth highlighted the need for faster employment equity policies and announced plans to hire 20,000 labour inspectors to check if businesses are meeting these requirements. This means it’s time to evaluate your company’s current EE practices. Why Is EE...

As an employer, you may wonder if you have any rights when an employee abuses sick leave. What if someone calls in sick but isn’t really ill? Two key cases, Woolworths (Pty) Ltd v CCMA and SARS v CCMA, help answer this question. Woolworths (Pty) Ltd v Commission for Conciliation, Mediation and Arbitration (2022) In this case, an employee told his manager he was too sick to come to work. However, it was later discovered that he had travelled with his father for an hour to attend...

When charging employees, it’s crucial for employers to clearly communicate allegations and provide adequate information for preparation. The case of Murray and Roberts Cementation (Pty) Ltd v Association of Mine Workers and Construction Union obo Dube and Others (JA96 / 2022) highlights the importance of this practice. In this case, an employee was dismissed for poor work attendance, including unauthorised absences and misuse of sick leave. However, during the hearing, the employer...

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...