Employment Equity 2018 submissions

Employment Equity 2018 submissions

According to the Employment Equity Amendment Act 2013, a designated employer must submit a report to the Department of Labour once every year.

Please remember that a designated employer is defined as:

  1. an employer who employs 50 or more employees;
  2. an employer who employs fewer than 50 employees, but has a total annual turnover that is equal to or above the applicable annual turnover of a small
    business as defined in the table below:
Sector Or Subsections In Accordance With The Standard Industrial Classification Total Annual Turnover
Agriculture R 6 million
Mining and Quarrying R 22.50 million
Manufacturing R 30 million
Electricity Gas and Water R 30 million
Construction R 15 million
Retail and Motor Trade and Repair Services R 45 million
Wholesale Trade, Commercial Agents and Allied Services R 75 Million
Catering Accommodation and other Trade R 15 million
Transport, Storage and Communications R 30 million
Finance and Business Services R 30 million
Community, Social and Personal Services R 15 million

Failure to comply could result in a fine of between R 1 500 000.00 and R 2 700 000.00 or between 2% and 10% of turnover – whichever is greater.

In the event that you would require our assistance in the submission of the required reports and in order for Connold and Associates to accurately determine whether your company is classified as a designated employer, please can we request that you provide Tessa at our offices with:

  • The projected number of employees on your payroll as at 1 August 2018.
  • The company’s current annual Turnover.
  • Confirmation of Sector company is registered under.

Please contact Tessa Lourens at our office using the contact sheet below, if you would like us to assist with the relevant submission of your EE report to the Department of Labour.

Leadership Development Programme

Leadership Development Programme

Connold & Associates are hosting a Leadership Development Programme in Cape Town This Month (March 2018 dates to be confirmed).

There are many examples of employees in supervisory and management positions who are uncertain of how to lead their teams to greater performance. This programme integrates through theory and experiential learning, the essential components of leadership in business today.

The Programme enables Managers to integrate their knowledge and practice in Leadership Development. The content is spread over a 10-month period. Participants are expected to attend a 1-day programme per month. The programme covers 5 important principles of leadership: Understanding Business, Introduction to Management, Performance Management, Leadership and Industrial Relations.

For More information please visit our course page here.

Please see the accreditation for our course here.

Employment Equity 2017 submissions

Employment Equity 2017 submissions

According to the Employment Equity Amendment Act 2013, a designated employer must submit a report to the Department of Labour once every year.

Please remember that a designated employer is defined as:

  1. an employer who employs 50 or more employees
  2. an employer who employs fewer than 50 employees, but has a total annual turnover that is equal to or above the applicable annual turnover of a small.

business as defined in the table below:

Sector Or Subsections In Accordance With The Standard Industrial Classification
Total Annual Turnover
Agriculture R 6 million
Mining and Quarrying R 22.50 million
Manufacturing R 30 million
Electricity Gas and Water  R 30 million
Construction  R 15 million
Retail and Motor Trade and Repair  R 45 million
Wholesale Trade, Commercial Agents Services and Allied Services  R 75 Million
Catering Accommodation and other Trade  R 15 million
Transport, Storage and Communications  R 30 million
Finance and Business Services  R 30 million
Community, Social and Personal Services  R 15 million

Failure to comply could result in a fine of between R 1 500 000.00 and R 2 700 000.00 or between 2% and 10% of turnover – whichever is greater.

In the event that you would require our assistance in the submission of the required reports and in order for Connold and Associates to accurately determine whether your company is classified as a designated employer, please can we request that you provide Tessa at our offices with:

  • The current number of employees on your payroll as at 1 August 2017
  • The company’s current annual Turnover
  • Confirmation of Sector company is registered under

Please contact Tessa Lourens at our office if you would like us to assist with the relevant submission of your EE report to the Department of Labour.

Lifeskills Training Course

Lifeskills Training Course

Beqfin recently held a one-day workshop (Accredited by the SABPP), for their staff.  The purpose of the workshop was to educate employees with regard to their rights as employees and to demonstrate through a series of exercises, the importance of productivity and customer service.  Below are photographs of the staff planning and executing the building of a lego tower.

2017 TRAINING SCHEDULE

2017 TRAINING SCHEDULE

This is a reminder that Connold and Associates have the following training programmes scheduled:

LEADERSHIP DEVELOPMENT Programme

Johannesburg 22 JUNE 2017
Cape Town 6 JULY 2017

This programme as aimed at Middle Management level employees who preferably have a Matric plus a further qualification. This programme is run over a 10-month period with delegates attending training one day per month.

The Cost of the course is R 1 787.00 per delegate per day – excluding VAT and includes training material, the venue, refreshments and a light lunch.

EME EMPLOYMENT EQUITY Programme

Johannesburg 12 JULY 2017

This programme is aimed at Training and Employment Equity Committee members and empowers them with current knowledge and information relating to Employment Equity and Skills legislation.

The Cost of attending the public training programme is R 985.00 per day per delegate – excl VAT for the 5-hour programme (excl VAT) and includes the venue, training material, refreshments and a light lunch.

The above training programmes may also be structured that they are presented as in-house spec company specific programmes. Please contact Tessa on (011) 452 1707 or tessa@connold.co.za if you require any additional information regarding the above courses and in order to book your de delegates on any of the above training programmes.

WHAT TO DO?

What To Do?

Many of our clients are asking advice as to what to do on Friday as staff are either wanting the day off or saying that they feel that they will have difficulty getting to work.

Some companies have made the decision to support the strike and are closing for the day, but for the rest our advice is:

  • Where possible allow the staff to take a day’s annual leave on condition that they apply in advance and that it is approved before Friday.
  • Ensure that essential services are covered and that those staff who are critical to the continuation of the business are made aware that they are not eligible for leave.
  • Those that do not apply for leave and then do not come to work must have an acceptable reason, alternatively, it should be treated as an unpaid day.

All strike action, whether for a protected strike or an illegal strike is on the basis of no work, no pay.

Our advice is that anyone who does stay away loses a day’s pay, but that this should not be treated as a disciplinary offence.  Much as we did in the stay aways in 1980.

If anyone would like wording for a notice for staff, please contact Debbie or Tessa at the office.

2017 Training Schedule

2017 Training Schedule

 DAYSJANFEBMARAPRMAYJUNJULAUGSEPOCTNOVDEC
Employment Equity Committee½232312
Employee/Employer Rights Rights2 hrs
Industrial Relations222, 23, 2417,18,1919,20,2119,20,21
Leadership Development10206
Life Skills (above threshold)161113
Life Skills (below threshold)17137
Performance Management
(Appraisers - on line)
13081517
Performance Management
(Appraisees - on line)
½3191719
Performance Management (Manual)19202318
Update on Legislative Changes11691611

The above training programmes may also be structured that they are presented as in-house company specific programmes. Please contact Tessa on (011) 452 1707 or tessa@connold.co.za if you require any additional information regarding the above courses and in order to book your delegates on any of the above training programmes.

 

What You need to know about UIF

On the 19th January 2017 the President assented to an amendment to the Unemployment Insurance Act that significantly improves the benefits that can be received from UIF and even better takes away some of the obstacles that existed in claiming these benefits. The improvement in benefits has been motivated by the surplus of R111 Billion that the Fund has in reserve at the moment. In 2015 the fund collected R16 Billion rand and paid R7 Billion in benefits.

There are essentially five benefits that can be claimed from UIF and over the next few weeks, we will explain these benefits and the changes that this amendment to the act introduces.

It is to be noted that although the act has been assented to, it has not yet been promulgated and there is no indication as to when the Minister of Labour will promulgate the act, but we anticipate that it will be within the next few weeks.

So, as a contributor to UIF employees can claim benefits in the event of:

  1. Becoming unemployed as a result of your dismissal. Dismissal may be for misconduct, incapacity, operational reasons (retrenchment) or retirement.
  2. Becoming too ill to work, either permanently or temporarily
  3. Having a baby (maternity leave)
  4. Adopting a baby
  5. And in addition their beneficiaries can claim a dependents benefit in the event of their death.

Legal Requirement

In the new amendment, all employees are required to contribute towards an Unemployment Insurance Fund administered through the Department of Labour. This includes everyone, from Executive Directors to Domestic Workers. It includes foreign nationals, even if they are working on work permits (or even illegal employees) and part-time employees. The only employees who do not contribute to Unemployment Insurance are those that work for less than 24 hours and independent contractors.

What this means is that if you employ a person for more than three days you have to deduct UIF from their pensionable earnings.

If you don’t’ (and please when you consider this put on your hat as the employee of a domestic worker even if she only works for you one day a week), you face a potential fine or a maximum of 12 months in prison. You also become liable to pay the benefits that the employee would have received if they had been contributing.

At the moment the maximum contribution level is capped at R148-72 per month which caps an employees benefit to a salary level of R14 872-00. This means that whatever their salary is their maximum benefit from UIF is 38% of R14 872-00, i.e. R5 617-16 per month. They can claim this for 34 weeks which works out to 7,85 months or until they start contributing to UIF again.

The good news is that when the amendment is promulgated, maternity leave will increase to a flat 66% of salary which means that during maternity leave if the employee’s salary is over the capped limit, they would be entitled to R9 815.52 per month for the four months that they are on maternity leave. Below that they would receive 66% of their actual salary.

In our next blog, we will discuss how to claim for unemployment benefits and the changes in applying that the new act has brought in.

If you are an employer of a domestic worker, please made sure that you register for UIF and pay the contribution across. This can be done by Ufiling and EFT and it can be done annually.

December 2015

What an interesting year it has been. The Economy has had some interesting ups and downs and the political environment remains interesting. For most of us it has been a year of interesting opportunities with many many challenges. We hope that 2016 will be a year that provides more stability.

EMPLOYMENT EQUITY

We are in the process of finalising the last of the Employment Equity Reports and submitting them to the Department of Labour. It is important that those designated employers who have to comply with the Employment Equity Act schedule the quarterly meetings that are a minimum requirement of the Act. We suggest that you get these meeting dates set up for the year and the timing of the meetings should coincide with the reporting that is required. We suggest the following:

MEETING MONTH PURPOSE
Meeting 1 February To review the training report and plan training for 2016
Meeting 2 April To finalise the training submission to SETA
Meeting 3 July To review the employment equity plan
Meeting 4 September To finalise the Employment Equity Reports

To meet the requirements of the Department of Labour we have developed a standardised agenda for the meetings. Please keep in touch with Tessa at the office for information on the Agenda’s

SKILLS DEVELOPMENT

A court judgement in August means that we may be entitled to refunds from the SETA’s that we submit reports to. In a judgment in favour of Business Unity SA (Busa) ‚ the Labour Court has set aside certain aspects of the 2012 Seta Grant Regulations‚ declaring them invalid. The case relates to a dispute regarding the new regulations that reduce a mandatory skills grant payable to employers from 50% to 20%.

In the court submission Busa claimed that its attempts to appeal to Higher Education Minister Blade Nzimande and prevent the implementation of these measures were unsuccessful‚ and that Busa had no option but to resort to the courts to review and set aside these regulations.
The Labour Court’s judgment on Friday declared both regulations which were effected in April 2012 to be invalid. The court found that Mr. Nzimande had failed to consult the National Skills Authority as required by law.
The court also ruled that the minister had acted irrationally by reducing the mandatory grant to employers as set out in the Skills Development Act. The minister had exceeded his powers by prescribing that surplus Seta funds be moved to the National Skills Fund.
The court recommended that this ruling with regard to the regulations be suspended until March 31 2016 to allow the Minister to correct the impugned regulations. The minister was ordered to pay all costs of the application.
The Minister has in the meantime published a white paper seeking to review the entire skills development landscape. This was Gazetted on 10 November 2015 and will require significant consultation. The current Skills Legislation requires that SETA’s be relicensed every 5 years. Their current terms expires in 2016 as does the current National Skills Strategy. The proposals put forward in the White Paper would take significant public consultations and it therefore proposes to extend the current SETA licenses for another two years to 2018. There after the SETA’s would become permanent Administrative Boards or SETAB’s responsible to Cluster Management within the Department of Higher Education. It is also proposed to have a representative from Government on the Board (Accounting Authority) of each SETAB
The proposed revision of the Skills Environment is to centralize control of the larger portion of the Skills Levy in the National Skills fund and to use this to fund PIVOTAL or Vocational Training and to encourage an environment where Companies are encouraged to provide work opportunities to graduates. The following funding model has been suggested:

SKILLS LEVY, 1% OF PAYROLL CURRENT LEVY / GRANT SYSTEM PROPOSED LEVY /GRANT SYSTEM
20% Goes to National Skills Fund Goes to National Skills Fund
10% Goes to SETA Administration To go to SETAB administration plus cluster management and shared services (% to be reviewed given changed functions)
20% Goes to Mandatory Grant paid to Employers who submit Training Reports and Plans SETAB Workplace Skills Plan Grant
0,5% SETA Allocation to QCTO National Skills Fund for QCTO
20% of 49,5% (9,9% of total levy paid) SETA Sector Discretionary Grant SETAB Sector Specific Grant
80% of 49,5% (39,6% of the Total levy paid) SETA PIVOTAL grants National Skills Fund (ring-fenced) – utilized for PIVOTAL programmes.
THE FOLLOWING NOTES ARE MADE IN THE PROPOSAL:

Note 1: the levy contribution to the QCTO (0.5%) allocation will henceforward be managed from the National Skills Fund and not from individual SETABS.

Note 2: At this stage it is envisaged that the primary applicants for the ring-fenced PIVOTAL grants will be the SETABs, however the final decision on ‘who gets how much’ will be taken after due consideration is taken of national priorities, informed by the National Development Plan. Under this new arrangement neither sectors nor individual employers will be restricted to claiming grants linked to their levy contribution. If they contribute to national targets they will be entitled to claim more than they contributed.

Note 3: The implications of these changes for government departments will be separately elaborated, however, and in broad terms, the full l percent of departmental training budgets should be subject to rules set nationally i.e. be committed to quality assured training. Note 4: These changes will require legislative changes.

Note 5: The percentages used signal the current and proposed subdivision of the sectoral levy. These may change after consultation and consideration of the advice received.

The interpretation of this prescription will need to be interrogated on a sector-by-sector basis, but no fewer than one senior government official (at the level of Chief Director or above) must be represented on each SETAB Board, drawn from sectorally relevant departments. Where such representation is already in place, the status quo can be confirmed.

The government representatives will have a veto right in relation to the adoption of the sectoral brief to be submitted to the DHET to ensure that the strategic priorities are addressed therein, provided that their respective Directors-General formally mandate such a veto. Where departments fail to execute this function, the plans will be deemed, after a specified period, to be approved and may be submitted without such approval but with an account of steps taken to achieve such approval and reasons for their failure.

It is clear that going forward the DHET wants a much more centralized control of the SETA structures and the money that is being paid over for the Skills Levy (about R12 Billion per year) by Companies and that application for grants will become more onerous. The White paper states:

The broad architecture of the new SETAB Boards will remain unchanged, with one important exception. The role of government departments will be strengthened on SETAB boards for three reasons:

  • Firstly, because government is the largest employer in the country and departments have a key role to play in providing workplace based learning opportunities;
  • Secondly, because the role of government, from the perspective of the National Development Plan (i.e. the role of government as the mouthpiece of the ‘developmental state’), is particularly important when sectoral briefs are developed. It is critical that the sectoral strategic plans of the different sectoral departments inform the sectoral briefs and priorities set; and
  • Thirdly, because the spending of government’s training funds should be steered to support national and sectoral priorities.

The strengthened role of government departments in SETABs comes with changes in the roles to be played by these departments – in particular it is proposed that they prepare training plans in line with methodologies and templates determined centrally (so that the NSF can ‘recognize’ their applications in terms of its standard funding categories) and secondly that their committed one percent of personnel budget dedicated to training should focus primarily (approximately 80 percent) on quality assured training. All time-based exposure programmes that are not quality assured, should be funded from other funding sources, or, in the case of the private sector, should be incentivized through tax incentives and broad-based black economic empowerment {BBBEE) points.
The paper is very comprehensive and requires much analysis, but it will most probably increase the bureaucracy and make it difficult for private businesses to access the PIVOTAL skills grants.
We await the consultations with interest.

 

DOMESTIC WORKERS

It is the time of the year when the Minister of Labour gazettes the new minimum salaries for Domestic Workers. According to the Department of Statistics CPI was set at 5,5%, and the determination is CPI +2,5%. This is was the determination that was gazetted last year.:

R 11,44 per hour – an increase of 8,02% over last year
R 514,82 per week – an increase of 8% over last year
R2 230,70 per month – an increase of 8% over last year.

The Gazette states that wages in Area A (Urban Areas) will be subjected to a CPI plus 2.5% increase for the period 1 December 2015 to 30 November 2016. The CPI***(for the lowest quintile) six weeks prior to 1 December 2015 is 5.5%. This means that wages for this period was calculated as follows: CPI plus 2.5% for Area A = 5.5% + 2.5% =8%.

We therefore have to give all domestic workers an increase of 8% this year.

We wish you a happy holiday and safe travelling if you are going away. We hope that 2016 will be a prosperous and happy year for everyone.