Legislation Flashcards
(114 cards)
1
Q
What is the nature of the SDA?
A
- National Skills Development Strategy aims to develop employees’ knowledge and skills, and enable both employers and employees to become more productive and competitive
- SDA was developed in response to demand for redress and equity about imbalances created by apartheid
- SDA ensures workforce is skilled and contributes to productivity and economic growth
- SDA enables the business to improve employees’ skills, increase morale, and decrease staff turnover
1
Q
What does SDA stand for?
A
Skills Development Act
2
Q
What is the purpose of the SDA?
A
- redressed imbalances of past through education and training
- invest in education and training of the SA workforce
- encourages the business to improve skills of new and existing members
- improves the chances of getting a job for pdp
3
Q
Advantages of SDA
A
- trains employees to improve workplace productivity
- promotes self-employment and entrepreneurship
- increases investment in education and training in the labour market
- increases global competitiveness
4
Q
Disadvantages of SDA
A
- increases cost as the process requires a lot of paperwork
- implementation can be difficult to monitor and control
- many businesses may not support the government initiative
- Skills Development Levy could be an extra burden to financially struggling businesses
5
Q
Ways businesses can comply with SDA
A
- businesses who collect PAYE should register with relevant SETAs
- 1% of employer’s payroll has to be paid to SETA
- encourage employees to participate in leadership and other training programmes
- provide all employees with the opportunity to improve skills
6
Q
Non-compliance with SDA
A
- preventing employees from signing up for leadership roles due to age or position in the workplace
- unfair promotion of skills and training to certain employees
- supplying false information in any prescribed documents
7
Q
Penalties for Non-compliance with SDA
A
- businesses that don’t pay SDL may not offer leadership or claim grants from SDA
- labour inspector could order the business to stop operating should the business be found guilty of illegal practices
- failure to comply results in a criminal offence and any person found guilty may be sentenced to fine or imprisonment for 1 year or less
8
Q
What is the Skills Development Levy Act?
A
- Levy grant scheme that helps fund skills development initiatives in SA
- All employers registered with SARS for PAYE and have an annual payroll exceeding R500 000 must register with SARS to pay for SDL
- Levy is calculated at 1% of employer’s payroll, payable monthly
- SARS collects all SDLs of which 20% goes to NSF and 80% to SETAs
9
Q
What is the meaning of learnerships?
A
- structured learning programme completed during work hours for a specified period
- includes training course with learning material and practical work experience
- agreement between trainee, employer, and training provider
- any learnership must be registered with the Department of Labour
10
Q
What is the role of SETAs in supporting SDA?
A
- approve workplace skills plans and annual training reports
- collect levies and pay out grants as required
- register learnership agreements
- report to Director-General
11
Q
How are SETAs funded?
A
- SDLs are paid by employers
- donations and grants received from the public and business CSI programmes
- surplus funds from government institutions
- funds received from rendering services
12
Q
What is the difference between the National Skills Development Strategy and the HR development strategy
A
- NSDS improves access to training programmes while HR improves the supply of skills
- NSDS provides career, vocational guidance, and training centre, while HR increases employee participation in lifelong learning
13
Q
What does LRA stand for?
A
Labour Relations Act
14
Q
What is the nature of the LRA?
A
- passed to redress past inequalities and revoke discriminatory laws
- guided by the Constitution which protects and regulates the basic rights of employees and employers
- focuses on issues like hiring and firing procedures, disputes, workplace forums, and trade unions
15
Q
What is the purpose of LRA?
A
- promotes fair labour practice between employers and employees
- promotes collective bargaining at the workplace
- promotes workplace forums to accommodate employees in decision-making
- provides for the right to lockouts by the employer as a recourse to lengthy strikes
16
Q
What are the rights of employers with regards to LRA?
A
- right to participate in the election of office bearers/employers’ organisation representative
- right to lawful lockout when employees embark on strike action negotiations
- right to dismiss employees who engage in unprotected strikes
- right to protection of the business interests in labour-related issues
17
Q
What are the rights of employees with regards to LRA?
A
- right to fair labour practices
- right to form and belong to a trade union
- right to organise and bargain collectively
- right to refer unresolved workplace disputes to CCMA
18
Q
Advantages of LRA
A
- protects rights and interests of the business in labour-related issues
- labour disputes are settled quicker and are less expensive
- protects employers who embark on lawful lockout when negotiations fail
- workplace forums can be tasked to resolve workplace issues as they take part in decision-making
19
Q
Disadvantages of LRA
A
- cost of labour increases due to legal strikes
- dispute resolution through consensus may be time-consuming
- decreases global competitiveness due to decrease in productivity
- employers may not get a court interdict to stop a strike
20
Q
Ways businesses can comply with LRA
A
- employees should not be unfairly dismissed
- allow establishment of workplace forums to enhance labour peace in the workplace
- employers shouldn’t breach collective agreements
- the business must allow employees to form trade unions and participate in union activities
21
Q
Non-compliance with LRA
A
- unfair dismissal of employees
- refusing establishment of workplace forums
- preventing employees from joining trade unions
- not allowing employees to take part in legal strikes
22
Q
Penalties for Non-compliance with LRA
A
- labour inspectors may serve compliance order by writing to department of labour
- Director-General may agree, change, or cancel compliance order
- labour inspectors may investigate complaints and remove records as evidence
- can be ordered to pay compensation and damages to employee
23
Q
What does CCMA stand for?
A
Commission for Conciliation, Mediation and Arbitration
24
Meaning of CCMA
- dispute resolution body established in terms of LRA
- Conciliation is getting two parties together to agree to settlement of the dispute
- if conciliation and mediation can't solve issue, CCMA acts as an arbitrator
- if they all fail, the dispute is referred to labour court
25
What does EEA stand for?
Employment Equity Act
26
Nature of EEA
- implemented to promote equal opportunity and fair treatment in employment through elimination of discrimination based on race, age, gender, etc
- implementing affirmative action to redress disadvantages in employment, by designated employers, experienced by designated groups to ensure equitable representation in all occupational levels in the workforce
27
Definition of designated employers
Business with 50 or more employees
28
Definition of designated groups
People of colour, women, people with disabilities
29
Definition of employment equity plan
Determines how employer will implement affirmative action, what the employer's planned numerical targets are, how employer is going to achieve them
30
Purpose of EEA
- no discrimination of gender
- equal representation of all population groups
- promotes equal opportunity and fair treatment
- protects employees from victimisation if they exercise the rights given to them by the EEA
31
Advantages of EEA
- encourages consultation between employees and employer
- motivates employees as workforce is more inclusive
- promotes equal opportunities and fair treatment
- creates framework of acceptable employment practices and affirmative action measures
32
Disadvantages of EEA
- expensive to train someone who is uneducated about the act
- fines for a non-compliant business may be expensive
- often positions go unfilled as there are no suitable EEA candidates
- diversity may lead to conflict
33
Ways businesses can comply with EEA
- implement employment equity plan
- eliminate barriers that may harm designated groups
- train designated groups, including skills development
- employees must be paid equally for work of equal value
34
Non-compliance with EEA
- not employing a young woman in case she wants children
- not employing someone with strong religious beliefs or disabilities
- doing HIV testing, unless justified by labour court
- denying access to workforce due to gender, race, culture, etc/treating them unfairly
35
Penalties for Non-compliance with EEA
- business may face heavy fines for non-compliance
- can be ordered to pay compensation and damages to employees
- labour inspectors may investigate complaints
- compliance order may be issued for non-compliance
36
What does BCEA stand for?
Basic Conditions of Employment Act
37
Nature of BCEA
- sets out conditions that ensure fair labour and HR practices
- protects employees so the business won't exploit them
- employers must keep record of employees, work hours, remuneration
- applies to casual, temporary, and permanent employees, and independent contractors
38
Purpose of BCEA
- sets the minimum requirements for employment contract
- regulates the right to fair labour practices as set out in the Constitution
- regulates variations of BCE
- advances economic development and social justice
39
Advantages of BCEA
- promotes fair treatment of employees
- encourages consultation between employers and employees
- work hours are specified so employer can't exploit employees
- outlines minimum reduction that form the basis of employment contracts
40
Disadvantages of BCEA
- forces businesses to comply with many legal requirements, increasing labour costs
- drafting formal legal employment contract is time consuming and costly
- hiring cheap labour is no longer possible so the business can't exploit workers
- non-compliance leads to high penalties, negatively affecting cash flow
41
List the provisions of the BCEA
- ordinary work hours
- overtime
- meal breaks and rest periods
- public holidays
42
Explain ordinary work hours in respect of BCEA
- may not work more than 45 hours weekly
- may work 9 hours a day if they work 5 or less days weekly
- may work 8 hours a day if they work more than 5 days weekly
- ordinary work hours may be reduced to a maximum of 40 hours per week or 8 hours per day
43
Explain overtime in respect of the BCEA
- must agree to overtime
- can't work more than 4 hours overtime per day or 10 hours per week
- must be paid at a specified rate for overtime/employee may agree to receive paid time off
- minister of labour may prescribe maximum permitted working hours, including overtime, for health and safety reasons for a certain industry
44
Describe meal breaks and rest periods in respect of the BCEA
- must have 60 minute meal break per 5 hours continuous work
- reduced to 30 minutes by written agreement when working less than 6 hours per day
- must have a daily rest period of 12 continuous hours, and weekly rest period of 36 continuous hours, including Sundays
45
Describe public holidays in respect of BCEA
- must be paid for any public holidays that fall on a working day
- work on public holidays is by agreement and paid at double rate
46
List four types of leave
- annual leave
- sick leave
- maternity leave
- family responsibility leave
47
Describe annual leave in respect of BCEA
- entitled to 21 consecutive days of annual leave per year / 1 day per 17 days worked, 1 hour per 17 hours worked
- can only pay worker instead of granting leave if worker leaves the job or employment contract is terminated
- annual leave must be granted within 6 months after leave cycle has ended
48
Describe sick leave in respect of BCEA
- workers are entitled to 6 weeks paid sick leave in 36 months / 1 day paid leave per 26 days worked during first 6 months of employment
- medical certificate may be required before paying an employee who is absent for more than 2 days or is frequently absent
49
Describe maternity leave in respect of BCEA
- pregnant employee is entitled to 4 consecutive months leave
- employee is not allowed to perform work that is hazardous to her or her child
- starting date is usually any time from 4 weeks before expected due date / on advice from doctor
50
Describe family responsibility leave in respect of BCEA
- 3 to 5 days paid leave per year on request, when:
• employee's child is sick
• death of spouse, life partner, parent, adoptive parent, grandparent, child, adoptive child, sibling
- employer may require reasonable proof before granting leave (eg. Death certificate)
- male employees are entitled to 3 to 5 days paternity leave when child is born
51
Describe the particulars of employment and remuneration in respect of BCEA
- employer must supply written contract containing all BCEA provisions, employer and employee information, duties and responsibilities, any relevant information specific to the workplace or occupation before starting employment
- employee should receive remuneration information in contract, including:
• period of payment
• remuneration package
• deductions must be agreed upon, except for compulsory deductions (PAYE, UIF, etc)
• actual amount paid, considering rate of remuneration, minimum wage, overtime, working hours on Sundays and public holidays
52
Describe the termination of employment with respect to BCEA
- 2 weeks notice must be given if worker has been employed for 6 to 12 months
- minimum of 4 weeks notice must be given if worker has been employed for a year or more
- employee must be given notice in writing
- retrenched employee is entitled to a week's severance pay per year of service
53
Describe the prohibition of the employment of children and forced labour in respect of BCEA
- illegal to employ child younger than 15
- children under 18 may not do dangerous work
- forcing someone to work is illegal
- business may employ children over 15 if employment is not harmful to health, wellbeing, education, and moral or social development
54
Ways that businesses can comply with BCEA
- don't employ children under 15 years
- have a break of 60 minutes per 5 hours work
- must pay double if they work during public holidays and Sunday
- can take up to 6 weeks paid sick leave during a 36 month cycle
55
Non-compliance with BCEA
- not allowing workers to discuss wages and salaries with coworkers
- not providing access to employment contracts
- refusing to accept valid medical certificates to grant sick leave
- refusing to grant family responsibility leave to support a sick family member or attend a funeral
56
Penalties for Non-compliance with BCEA
- Director-General may agree, change, or cancel compliance order
- business may be taken to labour court for ruling
- businesses may face heavy fines
- can be ordered to pay compensation and damages to employee
57
What does COIDA stand for?
Compensation for Occupational Injuries and Diseases Act
58
What is the nature of COIDA?
- introduced to protect health and safety of employees
- provides compensation if worker dies due to work-related injury or disease
- injuries and diseases for which claims can be made are specified
- employer should register with Compensation Fund within 7 days of first worker being employed
59
Purpose of COIDA
- applies to all casual and full-time workers who become ill, injured, disabled, or pass away due to workplace accident or disease
- excludes workers guilty of willful misconduct, or working outside SA for at least a year, and members of the SA Defence Force or Police services
- provides comprehensive protection to employees who get injured in the course of performing duties
- provides for establishment of a Compensation Board whose function us to advise Minister of Labour on application and provisions
60
Advantages of COIDA
- claiming processes are relatively simple
- supply administrative guidelines for processing claims
- promotes workplace safety
- employees don't contribute
61
Disadvantages of COIDA
- claiming processes can be time consuming
- domestic and military workers aren't covered
- procedures may be costly as paperwork places an extra administrative burden on the business
- workers temporarily or permanently employed in foreign countries aren't covered
62
Ways businesses can comply with COIDA
- business should provide healthy and safe working environment
- ensure premises, equipment, and machinery is in good working condition
- business should submit returns of earnings no later than 1 March annually
- levies must be paid to Compensation Fund
63
Non-compliance with COIDA
- employers who don't contribute to Compensation Fund
- employers who don't allow claims for injuries or discriminates against the injured
- employers who bribe or prevent employees from reporting the accident or injury
- employers who delay the claiming process
64
Penalties for Non-compliance with COIDA
- business can be fined for refusing to lodge a claim
- business can face large penalties or imprisonment
- business can be forced to pay recovery costs required by Compensation Fund
- business can be forced to make large payments if they don't make necessary precautions
65
What does BBBEE stand for?
Broad Based Black Economic Empowerment Act
66
Nature of BBBEE
- despite the right to equality, not all SA people are born to equal circumstances
- aim is to bring majority of SA into mainstream of economy
- to obtain a good rating, businesses have to spend money in areas covered by BBBEE pillars
- BEE scorecard is used to determine BBBEE status
67
What is BEE
A government policy which may not be enforced. It means that only a few previously disadvantaged people share in the wealth of the economy
68
What is BBBEE
An act that must be complied with by businesses. It aims at distributing a country's wealth across a broader spectrum of society.
69
What is the purpose of BBBEE
- enables wealth to be spread more broadly across all population groups
- allows for development if Codes of Good Practice
- aims at targeting inequality in SA economy
- increases the number of black people that manage SA businesses
70
List the BBBEE pillars
- ownership
- management
- skills development
- enterprise and supplier development
- social responsibility
71
How to comply with the ownership pillar of BBBEE
- more opportunities are created for black people to become owners and entrepreneurs
- encourage small black investors to invest in big businesses and share ownership
- business should include black people in shareholding, partnerships, and franchises
- large businesses should form joint ventures with small black-owned businesses and share business risks
72
Challenges of the Ownership pillar of BBBEE
- business sometimes finds it difficult to locate suitable black business partners and shareholders
- many black people can't afford shares in businesses or contributions to partnerships
73
How to comply with the management pillar of BBBEE
- business must ensure that transformation is implemented at all levels
- ensure that black women are represented in management
- appoint black people in senior executive positions
- involve black people in strategic decision making processes
74
Challenges of the management pillar of BBBEE
- due to shortage of skilled black managers and directors, some businesses find it difficult to make appointments
- businesses are directly penalised for not implementing this pillar
75
How to comply with the skills development pillar of BBBEE
- business must engage black employees in skills development initiatives
- provide learnerships to black employees
- business must contribute 1% of payroll to fund skills development programmes
- business could benefit from an increased pool of skilled workers
76
Challenges of the skills development pillar of BBBEE
- business must go the extra mile to train staff where learnerships are not offered
- productivity is comprised as mentors must find the time to participate in training
77
How to comply with enterprise and supplier development pillar of BBBEE
- business must create jobs as ESD promotes local manufacturing
- outsource services to suppliers that are BBBEE compliant
- identify black owned suppliers that can supply goods and services
- develop and implement a supplier development plan
78
Challenges of the enterprise and supplier development pillar of BBBEE
- smaller businesses that aren't BBBEE compliant may lose business
- businesses are forced to choose from a smaller pool of suppliers
- BBBEE suppliers may be without good workmanship
- small businesses may not be able to afford enterprise development investment
79
How to comply with the social responsibility pillar of BBBEE
- plan to budget for CSI projects
- form task teams who will be directly dealing with issues of social development
- they should distribute scarce CSI resources to selected beneficiaries in the community
- implement triple bottom line principles as part of corporate citizenship
80
Challenges of the social responsibility pillar of BBBEE
- can become expensive so not all small businesses are able to afford it
- can be time consuming which can decrease business productivity
- can distract business from main goals
81
Advantages of BBBEE
- encourages businesses to address demands for equity directly
- provides a variety of business codes to improve employment equity
- good BBBEE rating improves business image
- compliant business may get government tenders
82
Disadvantages of BBBEE
- business must go through process of having BBBEE compliance verified by an independent BBBEE verification agency
- processes may lead to corruption or nepotism if not monitored properly
- business could receive large penalties for non-compliance
- investment and ownership issues can cause unhappiness between existing shareholders
83
Ways businesses can comply with BBBEE
- sell shares to black employees
- send black people for skills development training
- outsource services to BBBEE compliant suppliers
- develop SMMEs through ESD
84
Non-compliance with BBBEE
- failing to implement affirmative action to meet BBBEE responsibilities
- refusing to award tenders to black suppliers who are BBBEE compliant
- promoting unsuitable people into a management position at expense of qualified PDPs
85
Penalties for Non-compliance with BBBEE
- fine of up to 10% of business annual TO
- may face imprisonment for non-compliance and fronting practices
- may be banned from participating in government contracts for period of 10 years
- business license may not be renewed authorisations may not be issued
86
What does NCA stand for
National Credit Act
87
Nature of NCA
- if customers are not using credit carefully, they may become over-indebted
- allows and enables responsible lending and eliminates reckless borrowing
- allows consumers to make informed decisions before buying on credit
- ensures that credit is used in a way that adds value to customers' lives
88
Purpose of NCA
- encourages responsible borrowing
- justifies rights and responsibilities for consumers and credit providers
- makes provision for establishment of National Credit Regulator
- makes provision for establishment of Credit register (database)
89
Advantages of NCA
- lower bad debts resulting in better cash flow
- protects business against non-paying consumers
- authorised credit providers may attract more customers
- prevents reckless lending and business from bankruptcy
90
Disadvantages of NCA
- business may struggle to get credit (bank loans)
- non-compliant businesses may face legal action
- debt collection procedures are more complex and expensive
- increases administrative burden which is time consuming
91
Rights of consumers with regards to NCA
- apply for credit and be free from discrimination
- obtain reasons for credit being refused
- fair and responsible marketing
- refuse credit limit increases
92
Ways businesses can comply with NCA
- business should register with NCR
- obtain credit records of clients before granting loans
- offer applicants pre-agreement statements
- disclose all loan costs (no hidden costs)
93
Non-compliance with NCA
- refusing credit based on gender, race, etc
- not conducting affordability assessments before granting credit
- hidden costs added after credit has been accepted by client
- blacklisting customers without making efforts to recover debt
94
Penalties for Non-compliance with NCA
- business bear all costs of removing negative information about clients who were blacklisted due to reckless lending
- business may not demand payment, sue, or attach clients' assets
- business may not charge any fee, interest, or other charges under that specific credit agreement
- NCR may impose fine on business for non-compliance
95
What does CPA stand for
Consumer Protection Act
96
Nature of CPA
- introduced to redress economic inequalities of the past
- promotes social and economic welfare of consumers in SA
- applies to promotion and sales of all goods and services
- impacts on almost every business sector
97
Advantages of CPA
- gain consumer loyalty if they comply
- business is protected if they are regarded as consumers
- may be safeguarding from dishonest competitors
- prevents larger businesses from undermining small ones
97
Purpose of CPA
- establishes national standards to protect consumers
- ensures consumers are not misled by suppliers of goods and services
- promotes responsible consumer behaviour
- establishes National Consumer Commission (NCC)
98
99
Disadvantages of CPA
- confidential business information may become available to competitors
- business may feel unnecessarily burdened by legal processes
- penalties for non-compliance are high
- business may need insurance against claims from consumers
100
List the rights of consumers in respect of CPA
- right to choose
- right to privacy
- right to fair and honest dealings
- right to disclosure and information
- right to fair, responsible marketing
- right to fair value, good quality and safety
- right to accountability from suppliers
- right to fair, just, reasonable terms and conditions
- right to equality in consumer market
101
Explain the right to choose in respect of CPA
- choose suppliers and goods
- shop around for best prices
- cancel or renew fixed term agreements
- request written quotations and cost estimates
102
Explain the right to privacy in respect of CPA
- consumers have right to stop unwanted direct marketing
- can object to unwanted promotional emails and telesales
- can lodge complaints about sharing of personal details
103
Explain the right to fair and honest dealings in respect of CPA
- suppliers may not harass customers to buy products
- suppliers may not give misleading information
- business may not promote pyramid schemes
- business may not overbook or oversell goods and services, and then not honour the agreement
104
Explain the right to disclosure and information in respect of CPA
- contracts should be in plain language and easy to understand
- business should display prices which disclose all costs
- consumers may request unit and bulk price of same product
- business should label products and trade descriptions
105
Explain the right to fair, responsible marketing in respect of CPA
- business should not mislead consumers on pricing, benefits, uses of goods
- consumers may cancel purchases made through direct marketing within 5 working days as a cooling-off period
106
Explain the right to fair value, good quality and safety in respect of CPA
- consumers have right to demand quality goods and services
- right to return faulty items if fault occurs within 6 months of purchase
- consumers may receive written warranty
- consumers must be informed about hazardous products
107
Explain the right to accountability from suppliers in respect of CPA
- consumers have right to be protected in lay-bye agreements
- business should honour credit vouchers and prepaid services
108
Explain the right to fair, just, reasonable terms and conditions in respect of CPA
- business should provide consumers with written notices of clauses that may limit consumer rights
- business may not market or sell goods at unfair prices
109
Explain the right to equality in consumer market in respect of CPA
- business should not limit access to goods and services
- business may not vary quality of goods to different consumers
- business may not charge different prices for the same goods and services
- business should not discriminate when marketing products and services in different areas
110
Ways businesses can comply with CPA
- disclose prices of all products on sale
- all agreements must provide for a 5 day cooling-off period
- provide adequate training to staff on CPA
- implement measures that facilitate complaints
111
Non-compliance with CPA
- not offering 5 day cooling-off period
- varying quality if goods when selling in different areas
- charging unfair prices for the same goods and services
- treating customers differently based on gender, age, race, etc
112
Penalties for Non-compliance with CPA
- liable for fine and/or imprisonment for a period not exceeding 12 months
- fine may not be more than 10% of the business's annual turnover during prior financial year or a million rand
- government agencies may conduct audits, enact fines, or dissolve the business entirely
- business will be forced to compensate consumers in line with the extent to which their rights have been violated
