LEGISLATION

LEGISLATION

1. SKILLS DEVELOPMENT ACT

   • PURPOSE
     • aims to improve the skill level of people who are already employed in the business
   • POSTIVES
     • trains employees to improve productivity
     • business could become globally more competitive 
   • NEGATIVES
     • increases cost as the process requires a large amount of paperwork 
     • implementation of SDA can be difficult to monitor and control
   • PENALTIES
     • businesses that do not pay the SDA Levy may not offer learnerships or claim grants from the SDA 
   • DISCRIMINTORY ACTIONS
     • unfair promotion of skills and development/training to certain employees 
   • COMPLIANCE
     • businesses with more than 50 employees must appoint a skills development facilitator 

2. LABOUR RELATIONS ACT

   • PURPOSE
     • promote simple procedures for the resolution of labour disputes in the workplace 
   • POSITIVES
     • promotes a healthy relationship between the employer and employees 
     • protects the rights of businesses in labour related issues 
   • NEGATIVES
     • cost of labour increases because of legal strikes 
     • reduced global competitiveness due to lower productivity 
   • PENALTIES
     • businesses that fail to comply with this act may risk financial costs 
   • DISCRIMINATORY ACTIONS
     • unfair/illegal dismissal of employees 
   • COMPLIANCE
     • businesses must allow employees to form unions/participate in union activities/legal strikes 

3. EMPLOYMENT EQUITY ACT

   • PURPOSE
     • aim to ensure that equal job opportunities are given to all people regardless of their race/religion/culture/language/ disability
   • POSITIVES
     • promote equal opportunity and fair treatment in the workplace 
     • encourages consultation between employer and employees 
   • NEGATIVES
     • expensive to train someone who knows little about the act 
     • fines or penalties for non-compliance businesses may be expensive for the business 
   • PENALTIES
     • businesses may be taken to the Labour Court for prosecution 
   • DISCRIMINATORY ACTIONS
     • refusing to employ a person because he/she has strong religious beliefs or has a disability 
   • COMPLIANCE
     • promote equal opportunities and fair treatment 

4. BAISC CONDITIONS OF EMPLOYMENT ACT

   • PURPOSE
     • sets the minimum standard for employment in order to promote fair labour practice
   • POSITIVES
     • creates a framework of acceptable employment practices 
     • promotes fair treatment of employees in the business 
   • NEGATIVES
     • forces businesses to comply with many legal requirements, which may increase labour costs 
     • developing legal employment contracts may be time-consuming or costly 
   • PENALTIES
     • the general director may agree/cancel/change the compliance order 
   • DISCRIMINATORY ACTIONS
     • forbidding workers to discuss wages/salaries with co-workers 
   • COMPLIANCE
     • workers should only work 9 hours a day, 5 days a week or 8 hours a day, 6 days a week. overtime should not exceed 10 hours per week and a break of 60 min must be given after 5hours of continuous work

5. COMPENSATION FOR OCCUPATIONAL INJURIES & DISEASES ACT

   • PURPOSE
     • gives employees who are injured or contract diseases while on duty, the rights to claim compensation
   • POSITVES
     • promotes safety in the workplace 
     • eliminates time and costs spent on lengthy civil court proceedings 
   • NEGATIVES
     • claiming processes can be time consuming 
     • domestic and military workers are not covered 
   • PENALTIES
     • they may be forced to pay any recovery costs required by the Compensation Fund 
   • DISCRIMINATORY ACTIONS
     • providing false info about previous, serious accidents/occupational diseases 
   • COMPLIANCE
     • businesses should provide a healthy and safe working environment 

6. BROAD-BASED BLACK ECONOMIC EMPOWERMENT

   • PURPOSE
     • ensure full economic participation of previously disadvantaged individuals 
   • POSTIVES
     • provides for HR development  through training and development 
     • provides a variety of business codes to improve employment equity 
   • NEGATIVES
     • processes may lead to corruption or nepotism if not monitored properly 
     • businesses will have to go through the process of having their BBBEE compliance measured or verified by an independent BEE verification agency
   • PENALTIES
     • a fine up to 10% of the company's annual turnover 
   • DISCRIMINATORY ACTIONS
     • refusing to award tenders to black suppliers who are BEE compliant 
   • COMPLIANCE
     • businesses must appoint black people to managerial positions 
   • BBBEE PILLARS
     • MANAGEMENT CONTROL
       • businesses must ensure that transformation is implemented at all levels and appoint black people in senior executive positions/to management
     • SKILLS DEVELOPMENT

7. NATIONAL CREDIT ACT

   • PURPOSE
     • protects consumers against unfair and reckless credit granting by businesses 
   • POSITIVES
     • lower bad debts resulting in better cash flow 
     • protects businesses against non-paying customers 
   • NEGATIVES
     • businesses can no longer carry out credit marketing 
     • the business needs to appoint additional staff to deal with extra administration
   • PENALTIES
     • the business may not demand payment, sue or attach the client's/customer's salaries/assets 
   • DISCRIMINATORY ACTIONS
     • refusing credit to customers based on gender/race
   • COMPLIANCE
     • credit providers must be registered with the National Credit Regulator 

8. CONSUMER PROTECTION ACT

   • PURPOSE
     • promote/protect the economic interests of consumers by providing them info so that they can make informed choices 
   • POSITIVES
     • may gain customer loyalty, if they comply with the CPA 
     • prevents larger businesses from undermining smaller ones 
   • NEGATIVES
     • confidential business info may become available to competitors 
     • businesses may feel unnecessarily burdened by legal processes 
   • PENALTIES
     • the business may not demand payment, sue or attach the client's/consumer's salaries/assets 
   • COMPLIANCE
     • disclose prices of all products on sale 
   • DISCRIMINATORY ACTIONS
     • charging unfair prices for the same good and services 

9. NATIONAL SKILLS DEVELOPMENT STRATEGY

   • encourages good quality training in the workplace to ensure on-going development of skills 
   • improves and increases the access to training programs 

10. HUMAN RESOURCES DEVELOPMENT STRATEGY

    • addresses skills shortages in the SA workforce 
    • improves the supply of skills 

11. SETA

    • ROLE: report to the director general and to promote and establish learnerships 
    • FUNDED: skills development levies paid by employers and donations/grants from the public