T1M1 Macro environment: The impact of recent legislation (Part 1)

Question 1

What is the aim of the Labour Relations Act?

Answer 1

The LRA aims to promote labour peace, democracy and social justice in the workplace.

Question 2

Name a few LRA provisions.

Answer 2

• to promote collective bargaining, for example during wage negotiations.
• to provide simple resolution processes during disputes through conciliation, mediation and arbitration.
• for trade unions, and the roles and rights of trade unions.
• to promote employee participation in decision-making through the establishment of workplace forums.
• to promote fair labour practices between employers and employees

Question 3

What does it mean when you’re asked to discuss the impact of an act?

Answer 3

You must discuss both the negatives and the positives.

Question 4

What are advantages/positives of the LRA?

Answer 4

• Promotes a healthy relationship between employer and employees.
• Labour disputes can be settled faster and are less costly to the business.
• Employers can claim for losses that occur as a result of illegal strikes through the labour court.
• Workplace forums can add value to the business.
• There are guidelines and procedures in place for fair dismissal procedures.

Question 5

What are disadvantages/negatives of the LRA?

Answer 5

• Labour consultants may be employed to deal with labour disputes, and this can be costly.
• Labour disputes and bargaining councils can become disruptive to the productivity of the business.
• Strikes result in a loss of productivity, which businesses may not claim.
• Employees cannot be dismissed without the correct procedures being followed.

Question 6

Name the dismissals that are considered unfair?

Answer 6

• An employer cannot prove an employee’s misbehaviour or inability.
• An employee participated in a lawful strike or protest.
• An employee is pregnant or plans to become pregnant.
• Dismissing a worker based on race, gender, ethnicity, culture, language or family responsibility.

Question 7

What actions are regarded as non-compliance, regarding the LRA?

Answer 7

• Unfair or illegal dismissal of employees.
• Not allowing employees to take part in legal strikes.
• Breeching the collective agreement by either the employer or employee.
• Refusing employees to form a workplace forum.
• Not allowing trade union representatives time off to join trade union activities

Question 8

What rights do employees have?

Answer 8

• Be treated fairly and have the right to fair processes for labour disputes in the workplace.
• Participate in founding a trade union and joining trade unions.
• Participate in a legal strike.
• Take reasonable time off work, with pay, to engage in trade union duties.
• Employees have the right to form workplace forums if there are more than 100 employees.

Question 9

What rights do employers have?

Answer 9

• Discipline, dismiss or retrench employees according to the legal procedures.
• Participate in the founding of employer’s organisations and participate in any lawful activities.
• Not pay employees while they are participating in a legal strike.
• Implement a lawful lockout

Question 10

What is a lockout?

Answer 10

A lockout occurs when an employer does not allow employees onto the premises, due to ongoing dispute resolution.

Question 11

What is the aim of the Skills Development Act?

Answer 11

The SDA aims to enable more South Africans to gain access to skills training opportunities that have long-term benefits for the population and society.

Question 12

Name a few purposes of the SDA.

Answer 12

• Develop the skills of South Africans to improve productivity in the workplace.
• Encourage businesses to improve the skills of new and existing workers.
• Invest in the education and training of the South African workforce.
• Improve the job prospects of previously disadvantaged people.

Question 13

Name a few ways a business can comply with the SDA?

Answer 13

• Businesses must register themselves and all employees with SARS.
• Ensure that the Skills Development Levy is paid.
• Assess the skills of employees to determine areas in which skills development is needed.
• Provide all employees with an opportunity to improve their skills.

Question 14

What ways can employees be non-compliant with the SDA?

Answer 14

• Do not pay skills development levies.
• Neglect to submit documents.
• Provide any false information on documents.

Question 15

What is the Skills Development Levy (SDL)?

Answer 15

It is a tax that the business pays, which is allocated to SETAs and the National Skills Fund for the purpose of skills development.

Question 16

Who are the Sector Education and training Authorities (SETAs)?

Answer 16

They are the vocational skills and training authority of South Africa, they provide skills development and training to people who are employed or seeking employment in the different sectors.

Question 17

What are the provisions for the Skills Development Levy?

Answer 17

• All businesses with a payroll of R500 000 must pay 1% of the total payroll as a Skills Development Levy.
• The business can claim back up to 60% of the SDL for training of their employees.
• If a business fails to pay the SDL, they cannot offer learnerships or claim grants.
• 20% of these levies are allocated to the National Skills Fund and 80% goes to SETAs.

Question 18

What is NSA?

Answer 18

National Skills Authority.

Question 19

What are the advantages/positives of the SDA, on businesses?

Answer 19

• Increases the number of skilled employees.
• Improves the productivity of the business because employees are better skilled through training programmes.
• Increases the global competitiveness of South Africa.

Question 20

What are the disadvantages/negatives of the SDA, on businesses?

Answer 20

• Implementation of the SDA is time-consuming and expensive.
• The Skills Development Levy can be an additional burden on financially struggling businesses.
• After training employees, they could leave the business and seek employment elsewhere.
• Only businesses with a payroll of over R500 000 can claim the Skills Development Levy.

Question 21

What is the aim of the Employment Equity Act?

Answer 21

The Act ensures that all employees receive equal opportunities and are treated fairly by their employers. The law protects you from unfair treatment and any form of discrimination.

Question 22

What are the provisions of the EEA that employers must adhere to?

Answer 22

• Eliminate unfair discrimination in the workplace.
• Take active steps to ensure that the workplace is inclusive.
• Retain and employ people from the designated groups.
• The business must submit their employment equity plan to the Department of Labour.
• Medical testing on employees is prohibited, unless it’s justified.

Question 23

What are the advantages/positives of the EEA?

Answer 23

• Promotes equal opportunities and fair treatment in the workplace.
• Promotes the implementation of Affirmative Action to redress the inequalities of the past.
• Workers are motivated because there is a representation of diversity in the workplace.

Question 24

What are the disadvantages/negatives of the EEA?

Answer 24

• Productivity can decrease if inexperienced employees are selected to fill the quota.
• Diversity in the workplace can lead to conflict and unhappiness.
• A position could remain open for a long period of time if a suitable Affirmative Action candidate cannot be sourced.

Question 25

Why does the difference between equity and equality play an important role in understanding the EEA?

Answer 25

We say that we should not discriminate and treat people unfairly, yet in the EEA we are favouring people from certain groups over others. That’s because certain groups have less favourable starts.

Question 26

What is affirmative action?

Answer 26

A policy of favouring members from previously disadvantaged groups.

Question 27

What is the purpose of the EEA?

Answer 27

• ensure all employees are paid equally for the same quality of work.
• protect employees from victimisation in the workplace.
• promote equal opportunities and fair treatment in the workplace.

Question 28

What is an Employment Equity plan?

Answer 28

A document illustrating what steps an employer will take over the next 5 years to achieve employment equity.

Question 29

What is the main aim of the Broad-Based Black Economic Empowerment Act (BBBEE)?

Answer 29

To correct the inequalities of the past, which were caused by apartheid.

Question 30

Name some of the BBBEE act’s purposes/aims.

Answer 30

• distribute wealth more broadly, amongst previously disadvantaged communities.
• encourage the participation of black people in the workplace.
• increase the provision of job opportunities for black people.
• does not aim to take wealth away from white people.

Question 31

How can businesses ensure that they are compliant with the BBBEE?

Answer 31

• increasing the number of black employees participating as management in the business.
• promoting skills and development so that all employees can improve their level of skills.
• trying to use suppliers that comply with the BBBEE standards.

Question 32

What does the BBBEE make use of to measure the extent to which businesses comply with it?

Answer 32

A scorecard with 7 pillars.

Question 33

What are the 7 pillars of BBBEE?

Answer 33

1. Ownership
2. Management and control
3. Equal employment
4. Skills Development
5. Preferential procurement
6. Business Development
7. Socio-economic Development

Question 34

What points are earned in the Business Development pillar of BBBEE?

Answer 34

Points are earned by helping smaller black businesses grow.

Question 35

What points are earned in the Socio-Economic pillar of BBBEE?

Answer 35

Points are earned based on the businesses support of black social issues.

Question 36

What can happen to businesses that do not comply with the BBBEE?

Answer 36

• They can receive a compliance order from the Labour Court.
• Businesses can receive a fine if they are found guilty of misrepresentation.

Question 37

What are the advantages/positives of the BBBEE, on businesses?

Answer 37

• employees may become skilled as points are allocated for upskilling employees.
• businesses with high scorecards can get government tenders, which encourages businesses to redress the demands of equity directly.
• a good BBBEE scorecard improves the image of the business.
• share prices of BBBEE businesses can increase as they attract more business.
• previously disadvantaged groups are encouraged to start their own businesses.

Question 38

What are the disadvantages/negatives of the BBBEE, on businesses?

Answer 38

• existing shareholders can become unhappy with the new investment and ownership issues.
• businesses that wish to obtain government tenders must be BBBEE compliant.
• businesses often have to spend large sums of money to ensure compliance with the seven pillars of BBBEE.

Question 39

Name the aspects that are in the South African Constitution of human rights.

Answer 39

• the right to equality
• the right to human dignity and respect
• the right to education
• the right to economic advancement
• the right to social development

Question 40

Define inclusivity.

Answer 40

Inclusivity means that everyone must be granted an equal opportunity.

Question 41

Why is it an incentive for businesses with higher BBBEE points to obtain government tenders?

Answer 41

It can increase their sales and profitability.