The Impact Of Employment

Relations And Labour

Legislation On An
Organisation

Chapter 4
 Study objectives
List the advantages of practising sound
employment relations in an organisation
Identify all relevant stakeholders in the
employment relationship and explain what their
respective roles are
Compile a service contract according to the
requirements set by BCEA
Distinguish between an employee and an
independent contractor
Deal with employee grievances
Conduct a fair disciplinary hearing
 Study objectives - cont
Distinguish among dismissals, unfair labour
practices and automatically unfair dismissals
Formulate procedures to follow in case of
misconduct, incapacity and operational
requirements
Assist in preparation of CCMA cases
Comply with legal requirements to ensure
protected strikes and lock-outs
Consult all the relevant labour legislation
 Introduction
Technical people employed as supervisors
and managers
Self employed as consultants, contractors
and business owners
Acquire basic understanding and
knowledge of employment relations
 Advantages of sound employment
relations
Better performance
Low labour turnover
Improvement in quality
Increase in productivity
Reduction in throughput time
Rapid innovation more decision making
Fewer dismissals
Reduced absenteeism
THE TRIPARTITE RELATIONSHIP

THE STATE
SECONDARY SECONDARY
RELATIONSHIP RELATIONSHIP

EMPLOYEES EMPLOYERS
(TRADE UNIONS) (EMPLOYERS ORGANISATIONS)
PRIMARY
RELATIONSHIP
 Role-players In Employment
Relations
The employee
Relationshipstarts with employment
Economic relationship
Trade unions

The employer
Goals set & met through effective
management
Measure output and quality of product
Effective HRM
Ensure labour legislative are met
 Role-players In Employment
Relations cont
The state
Provide legal framework
Guidance
collective bargaining
Settling of disputes
Handling of grievances
Ensure fair dismissals
Strikes
Watchdog
Conduct according to the law
 Employment Relations
Employer Employee in working
environment
Everything that emanates or impacts on
Happiness in the workplace
Motivated workers
Positive influence on productivity
Long term relationship
Negative side employee actions
 Information that employers should
supply to employees in terms of BCEA
The full name and address of the
employer
Name and occupation of the employee
Brief description of the work for which the
employee is employed
Place/s of work
Date on which employment began
Normal working days and hours
 Information that employers should
supply to employees in terms of BCEA
Wages and method of calculating thereof
Rate of pay for overtime work
Other payments employees are entitle to
Payment in kind and value of such
Frequency of payment
Deductions
Leave
Notice period
 Information that employers should
supply to employees in terms of BCEA
Description of council or sectoral
determination that cover employers
business
Previous employment period of
employment count towards period of
employment
List of documents that form part of the
contract of employment
EMPLOYMENT CONDITION OF EMPLOYMENT
ISSUE
Application of the act Applies to all employees and employers except
SANDF, NIA, SASS, unpaid charity workers

Ordinary hours of < 24 hours not apply

work < 45 h/w
9h 5 days / week
8h 6 days / week
Overtime 12 hours / day max
OT < 10 h / w @ 1,5
Collective agreement -15 h/w for 2 months
Meal intervals After 5 hours 1 hour off
Collective agreement - 30 min minimum
EMPLOYMENT CONDITION OF EMPLOYMENT
ISSUE
Daily and weekly rest Daily rest period 12 hours
periods Weekly rest period 36 hours (incl. Sun)
Pay for work on Double unless ordinary work = x 1.5
Sundays

Night work 18:00 06:00; agreement; allowance;

transportation available at begin and end of shift

Public holidays Employee not working receives normal pay

Employee working receives double pay
EMPLOYMENT CONDITION OF EMPLOYMENT
ISSUE
Annual leave Entitled to 21 consecutive days annual leave per
leave cycle

Sick leave Sick leave = work days in 6 weeks 36 months

Not pay if absent 2 x 2 consecutive days in less
than 8 weeks medical certificate
Maternity leave 4 consecutive months
No pay unemployment insurance fund

Family responsibility 3 day paid if work => 4 days per week

leave
EMPLOYMENT CONDITION OF EMPLOYMENT
ISSUE
Termination of Notice period: 1 week < 6 months
employment 2 weeks > 6 months < 12
4 weeks > 1 year
Severance pay Min 1 week pay = 1 completed year of
continuous service
Prohibition of Criminal offence to employ a child under 15 years
employment of of age
children
Variation of basic Collective agreement
conditions of Working time health and safety
employment May not reduce: protection night workers;
Annual leave < 2 weeks; maternity leave;
Sick leave
Employee

vs

Contractor
p66
 An employee is defined as:
Any person, excluding and independent
contractor, who works for another person
or for the state and who receives, or is
entitled to receive any remuneration

Any other person who in any manner

assists in carrying on or conducting the
business of an employer
Factors that determine an employee
Manner of work - subject to control or
direction
Hours of work - subject to control or
direction
Part of an organisation
Average of 40 hours/month 3 months
Economically dependent
Provided with tools of trade or equipment
Work for or renders service to one person
 Independent Contractor
LRA not defined
Courts see an independent contractor as:
not obliged to render service personally and can
delegate this obligation
does not have to keep fixed hours
is not paid a regular wage or salary
Is not subject to alleged employers disciplinary code
Is not entitled to benefits
Is not subjected to a degree of control by the
employer
 Grievance procedure
Upward communication
Step 1 informal procedure
Immediate supervisor 24 hours
Step 2 formal procedure
higher level representative time varies
Step 3 formal procedure
Senior management committee 24 hours
Step 4 external procedure
CCMA 2 days 2 weeks
Step 5 Resolution
 FAIR
DISIPLINE

SUBSTANTIVE FAIRNESS PROCEDURAL FAIRNESS

DISMISSL IS VALID AND FAIR RIGHTS OF EMPLOYEE
 Disciplinary sanctions
Verbal warning
Written warning / s
Final written warning
Transfer
Suspension
Demotion
Dismissal
OFFENCE FIRST SECOND THRID FOURTH
OFFENCE OFFENCE OFFENCE OFFENCE
MINOR
Verbal First written Final written
Late for work Dismissal
warning warning warning
Loafing
SERIOUS
Absenteeism
Leaving premises Written Final written
Dismissal
without permission warning warning
Sleeping on duty
Abusing sick leave
VERY SERIOUS
Refusal to carry out
lawful instruction Final written
Dismissal
Intoxicated - warning
alcohol/drugs
Forging time card
DISMISSABLE
Theft
Fraud
Violation of safety
Dismissal
regulations
Assault in workplace
Deliberately damage
company property
Employees rights during a disciplinary
hearing
The right to:
be informed of the nature of the complaint
A timeous hearing
Have an interpreter
Be represented
Plead to the complaint
State the case
Ask questions to witness of initiator
Call own witness
Challenge evidence brought against
Employees rights during a disciplinary
hearing
The right to:
Address the tribunal prior to decision of guilt
Be informed by the chairperson of decision
reached
Be informed by the chairperson of the penalty to
be imposed
Be informed by the chairperson of the right to
appeal
 Steps in disciplinary procedures
Notification
Opening letter of proceedings
Confirm the allegations
Process of the proceedings
Chairperson to reach a verdict
Mitigation
Aggravation
Determine the penalty and communicate the
decision
Right to appeal
 NON ACCEPTABLE REASONS FOR
DISMISSALS
DISMISSAL
Terminate contract with/out nocite
Change of fixed term contract
Refusal to resume work after leave (maternity/normal)
Dismiss and re-employ others to do the same work
Employer make continued employment intolerable
When new employer provide employee with conditions that is less favourable
than current employee

UNFAIR LABOUR PRACTICE

Unfair conduct training, promotion, benefits
Unfair suspension
Re-instate/re-employ former employee in terms of an agreement
Blow the whistle - Protected Disclosure Act, act 26 of 2000
 NON ACCEPTABLE REASONS
FOR DISMISSALS
AUTOMATICALLY UNFAIR DISMISSALS
Participate, support a legel strike or protest
Refuse to do work by workers on strike
Accept a demand in respect of any matter of
mutual interest
Any reason related to employee pregnancy
Unfairly discriminated against an employee
Transfer
Blow the whistle - Protected Disclosure Act,
act 26 of 2000
 Justifiable dismissal

Misconduct intentionally or negligently

breaks rules (next slide)

Incapacity cannot perform duties

Poor work performance
Ill health

Operational requirements related to

business needs
 Substantive fairness Procedural fairness
Contravene a Notify of charges
workplace rule Rights at hearing
Rule- reasonable and Hearing asap after
valid incident
Aware of rule Sufficient time granted
Consistently applied State case
rule Call witnesses
Is dismissal an Cross-examine
appropriate sanction
Interpreter if needed
Be represented or
assisted by co-
 Mechanisms to settle disputes
Pre dismissal arbitration
Conciliation
Conciliation arbitration
Arbitration
Labour Court
Labour Appeal Court
10 Steps taken to be assists by CCMA

1. Unfair dismissal 30 days

2. Complete LRA 7.11 form (CCMA case
referral )
3. Copy to other party prove of reception
4. Copy to CCMA + prove of 3
5. CCMA informs parties of date, time, and
venue
10 Steps taken to be assists by CCMA
6. Conciliation hearing reached
acceptable agreement all parties
7. If no agreement refered to CCMA for
arbitration or labour court
8. Arbitration hearing LRA 7.13 completed
90 days copy served on other party
9. CCMA Arbitration hearing
10. Labour court ruling if parties doed not
comply with arbitration award
 STRIKES

AND

LOCK-OUTS
 CONSEQUENCES OF PROTECTED
STRIKE AND LOCK-OUT
WORKES NOT BE DISMISSED
Involvement in strike not a breach of contract
No work no pay
Workers may be dismissed due to
conduct during strike
Economic implications of strike
Limitations apply to appointment of replacement
workers
 Other aspects of LRA
Freedom of association

Collective bargaining

Bargaining councils

Workplace forums
 Important labour legislation
Employment Equity Act 55 of 1998

Skills development Act 97 of 1998

Unemployment insurance Act 63 of 2001

Occupational Health and Safety Act 85 of 1993

Compensation for Occupational injuries and

diseases Act 130 of 1993
 Employment Equity Act 55 of 1998

Purpose of the act

Equal opportunities
Redress disadvantages designated groups
No discrimination
designated employer
50people employed
Annual turnover
Implement AA measures
Employment equity plan
 Employment Equity Act 55 of 1998

Purpose of employment equity plan

Employment equity programme
Represent parties
Progress diverse structure
Will set
Goals
Time frames
Benchmarks
accountability
Skills development Act 97 of 1998
Purpose
Develop skills
Investment

Learnerships
SETAs approved
NQF
Theory and practice
 Unemployment insurance Act 63 of
2001
UIF
Provides benefits
Unemployed
Dependants
Revenues
Employee, employer, government
Registration
Not for
Learners, public servants, foreigners on contract
etc
 Occupational Health and Safety Act
85 of 1993
Purpose
Duties of employers
Provideand maintain safe, healthy working
environment training, information, reports
Report & investigate injuries

Duties of employees
Duties of safety committees
Duties of safety representatives
 Compensation for Occupational
injuries and diseases Act 130 of 1993
Purpose

Who

When

Claims
 Conclusion
Up to date
Educate
Promote sound employment relations
Maintain fair labour practices
Equality
Result
Highly motivated and productive skilled labour
force