Category Archives: Update



On the 1st November 2019, the Department of Employment and Labour announced the long-awaited promulgation of Parental Leave with immediate effect.  Although the announcement only mentions Parental Leave, the Department has posted new forms on their website which address all the benefits which were passed in the amendment to the Act by the then President Jacob Zuma on the 19th January 2017 and we are assuming that applications for these benefits can be made with effect from 1st November 2019.

Below is a listing of the forms and the benefits for which they are applicable that have been posted on the DOL website:

UI 2.1 – Application for Unemployment Benefit in terms of Section 17(1) read with Regulation 3 (1)

This form is completed if an employee is dismissed, but still willing to work as a result of Dismissal for any reason including misconduct, retrenchment, incapacity or forced retirement.  This form must also be completed if the contributor is on short time and his earnings are less than he would receive from UIF if he was wholly unemployed. Payment while on Short Time is a new benefit.

UI 2.2 – Application for Illness Benefits     

This form is to be completed if an employee is ill (for any reason) for more than seven days and has exhausted his sick leave.  He is eligible to claim the same benefit as if he had been unemployed until he recovers.  This benefit is available for 12 months.

UI 2.3 – Application for Maternity Benefits

This form is completed if the employee is applying for maternity benefits.  The employee is now able to make application as soon as she is aware that she is pregnant or on the birth of a child, the stillborn death of a child or a miscarriage in the third trimester. The benefit available in any one of these circumstances is payment of 66% of salary up to the maximum benefit level of R17 712.00 for four months.  This means that anyone earning more than R17 712-00 per month will be eligible for a payment limited to R 11689,92 per month.

UI 2.4 – Application for Adoption Benefits

Application for Adoption Benefits of 10 weeks can be made by either parent who has legally adopted a child under the age of 2 years.  The benefit available is payment of 66% of salary up to the maximum benefit level of R17 712.00.  This means that anyone earning more than R17 712-00 per month will be eligible to a payment limited to R 26 997,51 for the 10 weeks.

UI 2.5 – Application for dependent’s benefits by surviving spouse or a life partner

When a contributor dies whilst still contributing, the surviving spouse or life partner is entitled to claim the contributor’s UIF.  They will receive the same benefit as if their partner had been unemployed or ill and payment is usually made calculated on the full 12-month period (or depending on the credits available) in a single payment.

UI 2.6 – Application for dependents benefits by a child, children of deceased

In the absence of a spouse or life partner, the dependent’s benefit can be applied for by children of the contributor, the guardian of a minor child or the nominated beneficiary of the contributor’s estate.  This form can be completed in any of these circumstances.

UI 2.7 – Remuneration Received by the Employee Whilst Still in Employment

This is a statement made by the Employer who may be supplementing the income of employees who are claiming UIF Benefits for Parental Leave, Commissioning Leave, Illness Leave, Maternity Leave, Adoption Leave or Reduced Working Time.  The form asks for the employer to state how much was paid each month.

UI 2.8 – Authorisation to pay Benefits into Banking Account

To be completed by the Bank or Post Office of the Beneficiary in the case of benefits, other than unemployment where benefits can be paid to the beneficiary directly into the beneficiaries banking account.

UI 2.9 – Application for Parental Benefits

This form is completed by the father of a child (Replacing family responsibility leave for the birth of a child), one of the parents of a child who is being legally adopted and is under the age of two or one of the parents of a child who is born through a surrogate arrangement (commissioning leave).  The contributor is entitled to 10 days leave paid at a rate of 66% of salary up to a maximum of R17 712-00.  For an employee earning more than this amount, the maximum benefit is R5 394.35 for the 10-day period.

It would appear that this form can also be used to apply for the 10 weeks adoption and commissioning leave.  This is a little confusing as we have a separate form for adoption leave.

UI 2.9 P – Application for Payment of Parental Benefits

This would seem to be a continuation of benefits form, but it appears that it is incorrect and will need amending.

UI 3 – Application for continuation of payment for Illness Benefits

This form must be completed for each month that the employee is on sick leave in order to continue to receive benefits.

UI 4 – Application for continuation of payment for maternity benefits

This form must be completed for each month that the employee is on maternity leave in order to continue to receive benefits.

UI 53 – Payments to dependants/nominee of deceased contributors

Merely a follow-up form confirming details of the dependents of a contributor who has died.

UI 6 A – Declaration to confirm unemployment status in terms of section 17(4) read with regulation 3(3)

This form is completed when a contributor is receiving a benefit and is still unemployed or still in a short time.  It is a continuation of benefits form.

UI 7 – Payment Advice

This is the form which employers are required to use when submitting UIF payments for their staff.  This is really meant for the payment of UIF for Domestic Workers as Companies should be paying their UIF through the SARS EMP 201 payments.  Payments can be made online, but where this is not possible, this form can be used to make monthly or annual payments.

UI 8 – Application for registration as an employer

Again, this can be done online or by making a paper application.  It is the form to be used when initially registering a business as an employer.

UI 8 D – Application for registration as an employer of Domestic Workers

This form is only to be used for private households and is applicable to all domestic workers including gardeners, carers for children or the elderly as well as cleaners and housekeepers.  Part-time domestic workers must also be contributors to the UIF Fund even if they only work one day per week.

UI12 – Notice of appeal against a decision of a Claims Officer

This form must be completed by a claimant who feels that their UIF payments have been unfairly refused or are not what they should be.  The form requires that this form be sent to the newly established Regional Appeals Committee and must be submitted within 90 days of the receipt of a refusal or suspension notice.

UI 19 – Employer’s Declaration of Employees for the month

This form must be submitted monthly in businesses which are larger.  Smaller businesses and private households can do it annually or when an employee is terminated. 

The reasons for termination have been expanded to include Reduced Work Time, Commissioning and Parental Leave

Foreign Nationals

One of the major changes that we need to take note of is that all employees (who are employed for more than 24 hours) must contribute to UIF and employers must contribute on behalf of all employees, regardless of whether they are part-time, temporary or on fixed-term contracts.  This includes foreign nationals.  The Regulations are being amended to state:

Identity document means a 13-digit barcoded RSA identity card and non-RSA identity (card) document or a RSA bar-coded passport and includes valid foreign identity documents and passports, as well as permits and other identifying documents contemplated in or issued in terms of the Refugees Act, 1998 (Act No.130 of 199).

An amendment to the regulations with this clause as its only intent was published for comment on the 8th October 2019.  Employers must, however, be aware of the Department of Employment and Labour’s responsibility to work with the Department of Home Affairs where the employment of undocumented foreign nationals is detected.


The amendment to the acts greatly improves the benefits which can be received from the UIF Fund. 

If you have any concerns or questions, please contact one of the associates or our office on  011 452 1707.

2019 New Human Resources Legislation for South African Business

2019 New Human Resources Legislation for South African Business


2019 started with four new pieces of legislation in the Human Resource Space as well as new regulations for UIF and new rules for the CCMA.  Over the next few weeks Connold & Associates will be sending out information with regard to the new legislation in a series of blogs.  The intention is to inform you of the changes, particularly where changes need to be made to policies and procedures.

The legislation promulgated on 1 January 2019 is:

  1. The National Minimum Wages Act
  2. The Labour Law Amendment Act
  3. The Labour Relations Amendment Act
  4. The Basic Conditions of Employment Amendment Act

We will begin with:

The labour law amendment act



The Labour Law Amendment Act was introduced by a private member of parliament (Mrs C Dudley) and introduces new leave classifications in the Basic Conditions of Employment Act which are:

Adoption LEave

This is available for any employee who has adopted a child under the age of two years in an adoption process which complies with the Children’s Act of 2005.  The leave granted is ten weeks dated either from the day the adoption order becomes final or the day the child is handed over to the care of the employee by a competent court, pending the finalisation of the adoption. 

The employee must notify the employer one month prior to the adoption (or as soon as is reasonably practicable) of the date on which the employee will embark on leave and the date that they will return from leave.

Commissioning Leave

This is available for any employee who is a commissioning parent in a surrogate motherhood agreement in terms of the Children’s At of 2005. The leave granted is also ten weeks dated from the day the child is born. 

The employee must notify the employer one month prior to the anticipated birth of the child (or as soon as is reasonably practicable) of the date on which the employee will embark on leave and the date that they will return from leave.

Parental Leave

This leave replaces family responsibility leave for the reason of the birth of a child (paternity leave) which has been deleted from the Basic Conditions of Employment Act.

10 days parental leave is granted to:

  • The father of a child
  • One of the adoptive parents of a child (the other parent will apply for adoption leave)
  • One of the parents in a surrogate motherhood agreement (the other parent will apply for commissioning leave).

In implementing this leave into the workplace, we need to consider the following:

  1. As with maternity leave, all this leave, including parental leave, is not paid by the company, but claims for payment can be made through the Unemployment Insurance Fund.
  2. If you have a policy that pays towards maternity leave, we need to consider how to fairly accommodate adoption and commissioning leave in a similar way
  3. Essentially, male employees are losing a three day fully paid paternity leave for an unpaid ten-day parental leave.  What is the fair way of accommodating our fathers going forward?

It is important to note that this leave is now in place and that employers need to include it in letters of appointment and in leave policies with effect from the promulgation date. We also need to update the posters on the wall.

Please contact our associates if you have more questions.

Skills Plans Submissions April 2019

Skills Plans Submissions April 2019

By submitting your Skills Plans to the SETAs, levy paying companies are able to claim up to 20% of the paid Skills Development Levies from SETA for that period as well as an additional Pivotal grant for qualifying companies.

All training reports and training plans are to be submitted to the relevant Seta by the end of April 2019.

Companies who submit training plans and training reports become eligible for additional opportunities which exist for the training and development of both existing employees and the unemployed in order for the employers to gain funding.  These Discretionary grants are in the form of Learnerships, Apprenticeships and approved fundings as decided by the SETAs in line with their industry strategies.

If you would like Connold and Associates to process your Skills submission to the relevant Seta that you are registered with, please will you contact Tessa Lourens using the below form or at 011 452 1707 and we will then guide you through the process.

New Regulations Booklet – Hazardous Work for Children

New Regulations Booklet – Hazardous Work for Children

Regulations with regard to hazardous work for employees under the age of 18 were gazetted in January 2010 in line with section 43 (1) of the Occupational Health and Safety Act which allows the Minister of Labour to gazette regulations.  In 2013 the Basic Conditions of Employment Act was amended with the following purpose:

  • to prohibit anyone from requiring or permitting a child under the age of 15 years to work;
  • to make it an offence for anyone to require or permit a child to perform any work or provide any services that place at risk the child’s well-being;

This week the Department of Labour published a booklet on their website which summarizes these regulations but also includes provisions from the Basic Conditions of Employment Act.  The communication has a number of interesting aspects to it and we have attached it for general interest.  Of particular interest is:

  1. Children under the age of 15 may work in the Advertising, Artistic and Cultural Activities industries and regulations governing these activities are covered by Sectoral Determination 10 which includes hours of work, rest periods, food accommodation etc.
  2. Children under the age of 15 may do the following work, other than as an employee as defined in the BCEA:
    • Collect contributions on behalf of a fund-raising organisation registered in terms of the Fund Raising Act, (Act No. 107 of 1978)
    • Do voluntary work for a church, charitable organisation or amateur sports club as part of his/her schooling, do work that is appropriate for a person of that age or which does not place at risk the child’s well-being, education, physical or mental health, or spiritual, moral or social development.

The booklet outlines, in line with international practices, the basis on which children under the age of 18 may work and identifies work which they may not be asked to do.  The full booklet is available below.

It is a criminal offence to require a child under the age to work in work not covered by the clauses above, punishable by a maximum prison sentence of 6 years.


Constitution Ruling With Regard to Temporary Employment Services (TES)

Constitution Ruling With Regard to Temporary Employment Services (TES)

Much has been said in the Media with regard to the recent Constitutional Court Reading with regard to Temporary Employment Services, or what is more commonly knows as Labour Brokers. The judgement clarifies the amendments to the Labour Relations Act of 2014.

The amendments of 2014 sought to protect employees in Labour Broker arrangements which were clearly articulated in a letter addressed to NUMSA by employees of Concor Engineering which were sent to them in 2009 (Labour brokers: The good, the bad, and the ugly). It is particularly clarifying clause 198A 3 (b),i.e.

  1. For the purposes of this Act, an employee –
    1. Not performing such temporary service for the client is –
      1. Deemed to be the employee of that client and the client is deemed to be the employer; and
      2. Subject to the provision of section 198B, employed on an indefinite basis by the client.

It is important to clarify a few issues which were raised in the judgement:

  1. The judgement only affects employees who earn below R205 433.33 per annum (gross salary) or R17 119.43 per month. These are regarded in the law as vulnerable employees.
  2. The judgement affects employees who are employed by a Temporary Employment Service (TES), but whose activities cannot be considered as Temporary. In other words, they are doing work that is core to the business of the client and that will last for longer than three months or in perpetuity.
  3. The employee is not replacing another employee who is sick or on maternity leave.
  4. The important thing is to distinguish between a TES and a sub-contractor or service provider.
    1. A sub-contractor has his own employees and provides not just the labour, but also the materials and tools required to do the work required.
    2. The sub-contractor has expertise which is not the core business of the client (e.g. security)
    3. The sub-contractor employs managers which directly supervise the employees in the carrying out of their duties.

By contrast, the TES merely supplies the labour who are then supervised and provided materials and tools by the client.

It is important to note that all TES providers must be registered as such and certified by the Department of Labour. The Department in the process of certification inspects and ensures that the TES is operating in accordance with all labour legislation.

We will see with interest what the effect of this judgement is going to be on the TES Industry.

For more information please see the press release on the Numsa website: NUMSA wins landmark Constitutional Court decision on labour brokers!

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.


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.

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.


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 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


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:

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.

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.



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.

September 2015

The year is speeding past as usual, although this year does seem to be going past faster than usual.  The news seems to be relentlessly bad and it is almost better to live in ignorance rather than keep up to date with what is happening.  However, there have been more laws passed and it is important for us to be up to date with what is required of us in law, so time for another update.



A general reminder to all Companies that it is time to report on Employment Equity again. We are seeing increased inspections from the Department of Labour so it is important to ensure that you are complying with the Act.

Remember, you can be fined R1 500 000 if:
  • You have not consulted with a representative committee
  • You do not have a designated Employment Equity manager
  • You have not displayed a copy of the Employment Equity Act on the wall of all workplaces
  • You have not conducted a qualitative analysis in the workplace
  • You have not kept records of Employment Equity activities over the last three years.
  • You have not displayed your Employment Equity report (public companies only)
  • You have not co-operated with the Department of Labour during a Director-General’s review
You can be fined R1 500 000 or 10% of turnover (whichever is the greater) if:
  • You have not submitted an Employment Equity report
  • You do not have an Employment Equity plan in the required format
  • You do not have successive Employment Equity plans
  • You have not complied with the recommendations of a Director-General’s review
Remember you have to comply with this legislation if you have 50 employees or more or if your Company turnover exceeds the following:
  • Agriculture – R6m
  • Construction, Catering, Social, Personal & Community services – R15m
  • Mining & quarrying – R22.5m
  • Manufacturing, Finance, Business Services – R30m
  • Storage, Communications, Transport &nsash; R30m
  • Retail, Motor Trade, Repair Services – R45m
  • Wholesale Trade, Commercial Agents &nsash; R75m

IF YOU ARE NOT SURE WHETHER YOU SHOULD BE COMPLYING PLEASE CONTACT TESSA AT OUR OFFICES. REMEMBER, Employment Equity is an Act belonging to the Department of Labour, Broad-Based Black Economic Empowerment is another Act belonging to the Department of Trade and Industry. They are not the same thing.



Every year the Department of Labour randomly selects 1000 companies from its Data Base for a review of their Employment Equity. They then make recommendations based on their findings. In doing the review, they request copies of documentation from the last three years. We have provided our clients with an Employment Equity Plan File which has a predetermined index and would contain all the information that the Department would require. If you would like us to audit your file to ensure that the documentation is correctly stored, please contact our office. Remember a failure to keep the required information is a finable offence.



The Earnings Threshold

The Minister of Labour had decided not to adjust the earnings threshold this year so it remains at R205 433.16 per annum or R17 119.43 per month. When looking at this figure, we are instructed by the minister that we must include gross salary i.e. salary before deductions, but exclude company contributions to Pension/Provident Funds, Medical Aid and Overtime. Subsistence and Transport Allowances must also be excluded.

The purpose of the earnings threshold has been enhanced as both the amendments to the Labour Relations Act and the Employment Equity Act refer to the earnings threshold. The Acts provide more protection for employees who earn below the threshold, e.g. in terms of the ability to contract terms and conditions of employees which contradict the benefits of the Basic Conditions of Employment Act.

We are frequently asked if a person can enter into a contract with a Company as an Independent Contractor and forgo the right to leave, sick leave, maternity leave etc. The answer is complex, however it cannot be done if the person’s earnings are going to be less than the earnings threshold. Such a contract would be invalid. The question is how do you treat employees who are part time, but whose payment, should you extend the hours to normal working hours, would take the person well outside of the earnings threshold?

For example, you contract a Marketing Professional to work with your Company four hours per day. You negotiate an independent contractor agreement because the person has other clients. Her hourly rate is R175-00 which makes her monthly earnings R15 225. However if she worked for you for the normal hours of 40 per week, her salary would be R30 450-00 per month, well above the threshold. We are instructed by the Department of Labour to consider only the actual salary and this is below the threshold, so you cannot enter into a contract unless it is fully compliant with the Basic Conditions of Employment Act.

The Employment Services Act
  1. To provide for Public Employment Services
    This requirement means that the Department of Labour has a requirement to provide an employment service and in doing this they are responsible for:

    1. Matching work seekers with available work opportunities;
    2. registering work seekers;
    3. registering job vacancies and other work opportunities;
    4. facilitating the placing of work seekers with employers or in other work opportunities;
    5. advising work seekers on access to education and training;
    6. advising workers on access to social security benefits;
    7. providing specialised services to assist vulnerable work seekers;
    8. facilitating the exchange of information among labour market participants, including employers, workers and work seekers, private employment agencies, Sector Education and Training Authorities and training providers;
    9. facilitating the employment of foreign nationals in a manner that is consistent with the object of this Act and the Immigration Act; and
    10. generally, performing any other function in terms of employment law or prescribed in terms of this Act.

    We are awaiting regulations to determine who at the Department of Labour will be aware of vacancies in the private sector as well as the full services provided. We are informed that one of the specialised services that will be offered will be free Aptitude Testing.

  2. To Regulate the activities of Private Employment Services
    This provision in the Act requires that any person who wishes to operate as a Private Employment Service (Recruitment Agent) or as a Temporary Employment Service (Labour Broker), must apply to the Department of Labour for Registration and must display in a prominent place, the certificate of registration. The Act says:
    “A person may not operate a private employment agency except in accordance with the provisions of this Act and the terms of its registration”
    This means that if you are registered as a Private Employment Service you may not provide temporary staff unless your registration specifically provides for it. The act also legislates on prohibited acts by employment services.
  3. To provide for the Activities of Productivity South Africa
    Again, this is not a new institution. It was first established in 1969 as the National Productivity Institute and rebranded as Productivity South Africa in 2007 when the funding of the institution was taken over by the Department of Labour.
    The functions of Productivity South Africa are-

    1. to promote a culture of productivity in the workplace;
    2. to develop relevant productivity competencies;
    3. to facilitate and evaluate productivity improvement and competitiveness in workplaces;
    4. to measure and evaluate productivity in the workplace;
    5. to maintain a data-base of productivity and competitiveness systems and to publicise these systems;
    6. to undertake productivity-related research;
    7. to support initiatives aimed at preventing job losses; and
    8. to perform any other prescribed function.
  4. To establish the Supported Employment Enterprise to Promote the Support of work for Disabled persons.
    The functions of Supported Employment Enterprises are to

    1. facilitate supported employment;
    2. provide work opportunities for persons with disabilities;
    3. develop and implement programmes that promote the employability of persons with disabilities, including persons with permanent disablement as defined in the Compensation for Occupational Injuries and Diseases Act, 1993 (Act No. 130 of 1993), in the light of their evolving needs in a changing economy; and
    4. perform any other function as may be prescribed by the Minister.

    Many of these functions are already up and running as the initial amendment to the Act was proposed in 2010 and the Act was passed last year. We await the regulations with interest.



Companies are required to comply with the Employment Equity and Skills Development Acts and the code of good Practice suggests that all Training and Employment Equity Committee members are empowered with the latest knowledge and information relating to Employment Equity and Skills Development.

The Employment Equity committee training programme offers a guideline to both the Employment Equity and Skills Development legislation.
This training programme is aimed at those Training and Employment Equity committee members that are newly appointed or those who have not yet received the required training.

We will be running a public Employment Equity committee training course towards the end of October from 08h30 to 13h30 at a cost of R 920.00 per delegates (excl VAT) which includes the venue, training material, refreshments and a light lunch.

Please contact Tessa at our office 011 452 1707 to book your place on this programme

Our training brochure of other courses offered by Connold and Associates is displayed on our Web page or is available from the office.



What are the principles that underpin employee performance within your Organisation?

  • Promotion of a high performance
  • Values based culture
  • Appropriate reward and recognition for high performance
  • Promotion of ownership and accountability
  • Definition of the individual’s role in the achievement of Company objectives
  • Pursuit of fair, valid and reliable measurement
  • Acknowledgement of the responsibility of the organisation to create an enabling environment

The illustration below provides you with a top line view of the Performance Management Process:
Performance Management Process

In alliance with Select Strategy Inc., the online evaluation system will provide you with a way to help manage this process.

If you are interested in seeing a demonstration of the system please contact Tammy Groenewald at our offices.



With current labour legislation, finding the correct person who not only has the necessary skills, but also fits into the Company’s ethos and value system, is crucial. We at Connold and Associates realise this, and are pleased to be able to offer a comprehensive Recruiting solution to our clients. In addition to our Personality Profile Analysis, and ITC, Fraud and ID verification checks which are standard for all our placements, we also offer an extensive list of skills testing for your potential candidate. As the employer, you are able to select from the list which skills you would like tested and your selection is setup through an email link to the candidate, who accesses the test questionnaire online and the results are available immediately upon completion.


Should you have any enquiries regarding our Recruitment processes or should you have any vacancies that we can assist you with, please contact Kevin on 011-452 1707.

We hope this quarter sees a positive change in the exchange rate and improved prospects for employment growth. We really need it.