Lay-bys, Penalties and the Consumer Protection Act.
Itching to purchase that new 55’ Hisense television, but due to your lovely bank balance, you are unable to do so, frustrating, as most people will know. Retailers are providing lay-by options to consumers who currently do not have the immediate funds available to purchase their products. Consumers have the option available to pay off products by way of instalments while the retailer in return reserves the product and only provides the consumer with the product as soon as the final amount has...
Sexual Harassment and Dismissal
Sexual harassment is defined as a form of unfair discrimination against persons based on the grounds of sex, gender and/or sexual orientation. It has also been described as persistent, unsolicited and unwanted sexual advances or suggestions from one person to another. It is a misconduct that is deemed to be a serious offence which can, and has, led to the dismissal of employees found charged and found guilty of such an offence. The Code of Good Practice for Handling of Sexual Harassment Cases...
Y.E.S 4 Youth Initiative
What is the Y.E.S initiative? The Y.E.S (Youth Employment Scheme) was gazetted on the 28th of August 2018, with its main purpose being job creation for individuals who qualify as a youth. Y.E.S has been described as a business-driven initiative which partner business with government and labour in a concerted effort to collectively tackle economic pathways for black youth. To whom does Y.E.S apply Y.E.S focuses on youth between the ages 18 and 35, by providing work experience for one year,...
Cancellation of a fixed term contract: Section 14 of the Consumer Protection Act, Act 68 of 2008.
A fixed term contract in terms of the CPA is an agreement between a supplier and a consumer as defined in terms of Section 5 of the act. Juristic persons are excluded from Section 14 of the CPA and are applicable only on agreements where natural persons/consumers are a party to the agreement. The period for a fixed term contract in terms of the CPA is a maximum of 24 months and or 2 years. This means that any clause stipulated in a fixed term contract that states the defer, is incorrect void...
A guide to employment contracts
The significance of employment contracts Employers normally only issue employees with letters of appointment and erroneously believe that if they do not simultaneously conclude a contract of employment; they protect themselves. They then believe they can then terminate the services of employees at any stage “because there are no contracts”. Even though there is no legal requirement for employees to have a written contract, it is advisable to conclude one to limit the risks that can be imposed...
The admissibility of hearsay evidence during a disciplinary inquiry
Hearsay evidence is a common problem during disciplinary hearings. Should such evidence be admitted it could result in serious prejudice to the accused, and excluding it could result in the employer or victim suffering. Hearsay evidence occurs when the person who is giving such evidence is not the person who actually witnessed the incident. A typical example of such evidence is where the person initiating charges submits a written statement from a person who witnessed the offense instead of...
Restrictions on cancellation penalties
With each new year, resolutions are made to become fitter and healthier, resulting in a large percentage of gym contracts being entered into across South Africa. However, resolutions are often short-lived and the business owner may receive requests for cancellation before the initial contract term has even expired. Informed members often invoking Section 14 of the Consumer Protection Act (CPA) when submitting such a request for cancellation. Gyms that have entered into fixed terms contracts...
PROBATION PERIOD, A FUTILE OR EFFECTIVE CONTRACTUAL CLAUSE
A Probation period is a controversial topic that requires an open mind to comprehend fully. South Africa has a very competitive and desperate labour market. The unemployment rate in South Africa rose to 27.6% in the first quarter of 2019 from 27.1% in the previous period. It is the highest jobless rate since quarter 3 2017, as the number of unemployed went up by 62 000 to 6.20 million and employment fell by 237 000 to 16.29 million. Despite this, there still exists a demand for employment in...
UNDERSTANDING TRUSTS IN TERMS OF THE B-BBEE ACT
Trusts have become a popular tool to facilitate Ownership for purposes of compliance with the requirements of the B-BBBE (Broad-Based Black Economic Empowerment) Act. It is however important that Companies take note of the requirements for recognition of such a Trust in an Ownership transaction. It is important to understand that a trust is seen as a Broad Base Ownership Scheme and as such to ensure that black people effectively own and control the ownership rights held through a Trust, The...
The expectation of renewal and dishonesty: Why it’s crucial to come clean
The Labour Court of South Africa, Johannesburg, was recently faced with the task of taking a closer look at the reasonableness of an employee’s expectation of the renewal of his or her fixed term contract of employment. In the recent case of Njikelana v Kruger N.O and Others, an application was made to review an award made by the commissioner under the auspices of The Commission for Conciliation, Mediation and Arbitration (CCMA) in order to determine whether, in casu, the employee did have a...