2010 was acknowledged by most of us as having been a very difficult year. Business was disrupted by the World Cup, which although it was very successful and did a great deal to put South Africa on the map, did mean a second holiday season for business. We hope that 2011 will be a much more productive year.
The Department of Labour has posed four proposed bills on their website, www.labour.gov.za, for comment. Comment closes on the 17th February 2011. Below I have summarised the main proposed amendments in each of the acts.
The good news is that there are no proposed changes to the actual conditions of employment, i.e. leave, hours of work etc. Most companies are in any case providing more generous conditions than those provided by the act. The main changes are as follows:
|It is a criminal offence to contravene the following provisions||Minimum applicable fines||Minimum term of imprisonment||Explanation|
|Section 9, 10, 14, 15, 16, 17, 18, 19, 20, 21, 22, 25, 26, 27, 32, 33, 34 and 34a||R10 000.00||12 months imprisonment||These are clauses relating to hours of work, leave benefits and payment of remuneration|
|Section 33a||R10 000.00||12 months imprisonment||This is the proposed clause relating to employers requiring payment from an employee or forcing them to buy from an employer|
|Section 39, 40 and 41||R10 000.00||12 months imprisonment||This relates to payment of termination monies and severance pay|
|Section 43||6 years imprisonment||This relates to employment of children under the legal age of 15|
|Section 44||6 years imprisonment||This relates to the regulations laid down which prevent the employment of children of 15 years or older|
|Section 46||6 years imprisonment||This clause makes it an offence to assist someone else to employ a child or discriminate against someone who does not wish to do so|
|Section 48||6 years imprisonment||This deals with forced labour|
|Section 65 and 66||R10 000.00||12 months imprisonment||These clauses allow labour inspectors to enter premises and question and inspect.|
|Section 90(1), (3) and 92 (a) (d) (e) (f)||1 year imprisonment||These clauses refer to the conduct of inspectors and the requirement for them to maintain confidentiality|
|Section 92 (b)||Applicable legislation must be used to determine imprisonment||This covers obtaining any document by means of fraud or false pretences or submitting fraudulent documents (applicable to inspectors)|
The provision for criminal prosecution was contained in the original act, but only for the employment of children and section 92. They obviously mean business.
The amendment intends to align the employment laws to ensure decent work by regulating sub-contracting, contract work and outsourcing, to amend the jurisdiction of the Labour Courts and to provide for the prohibition of certain abusive practices to workers.
It does this by proposing that:
This seems to be the extent to which they are legislating against labour brokers. This was previously provided for in the Basic Conditions of employment Act.
The much awaited amendment to the Employment Equity Act largely serves to bring it in line with regulations which have already been passed. Important proposed changes are as follows;
|Previous Contravention||Contravention of any Provision of Sections 16, 19, 20, 21, 22, 23 and 27|
|No previous contravention||2% of turnover|
|A previous contravention in respect of the same provision||4% of turnover|
|A previous contravention within the previous 12 months or two previous contraventions in respect of the sane provision within three years||6% of turnover|
|Three previous contraventions in respect of the same provision within three years||8% of turnover|
|Four previous contraventions in respect of the same provisions within three years||10% of turnover|
There has been a minor change in terms of the turnover requirement for a designated employer and that is to increase the turnover for agriculture from R2 million to R5 million. All other turnovers remain the same.
The provisions of this bill were previously part of the Skills Development Act and have had to be made into an independent act because Skills Development no longer falls under the Department of Labour. The act intends to provide for public employment services; to provide for the registration of private employment agencies; to provide for the establishment of
the Employment Services Board; to provide for the establishment of Productivity South Africa; to provide for transitional provisions and to provide for matters connected therewith.
Nothing within the act is really new, but there does seem to be a greater intention to enforce the act.
The act has wide ranging responsibilities for the Department of Labour to provide employment services and intervene where retrenchments are likely. It will also require Employers to notify the department of all their vacancies and the filling of the vacancies. They are proposing a R10000-00 fine if an employer fails to notify them of a vacancy.
There will also be a fine and possible prison sentence for anyone operating an Employment Agency without a licence.
We understand that the bills have already been “toned down” after their first introduction to parliament, however, they are still very onerous. Public comment will be invited at meetings to be held this month. We will be doing our best to respond with our comments before the 17th February 2011. Anyone who would like to have a look at the proposed legislation can view it on the Department of Labour’s website,www.labour.gov.za.
We don’t yet have an amendment to the Skills Development Act, although the previous one, published in December 2008 has not yet been promulgated. However, we have had clarity on the “SETA Landscape which was published in November last year. The following changes to the SETA’s have been finalized:
|1||Financial and Accounting Services SETA (FASSET)||No change|
|2||Banking Sector Education & Training Authority (BANKSETA)||No Change|
|3||Chemical Industries Education & Training Authority (CHIETA)||No Change|
|5||Construction Education & Training Authority (CETA)||Incorporating Electrical Contracting Association Employees|
|7||Education, Training, & Development Practices SETA (ETDP)||No Change|
|8||Energy and Water Sector Education Training Authority (EWSETA)||Removal of ECA and addition of water to this SETA|
|9||Food & Beverages Manufacturing Industry (FOODBEV)||No change|
|11||Health & Welfare Sector Education and Training Authority (HWSETA)||No Change|
|12||Media, Information and Communication Technologies SETA (MICTS||Addition of some sectors from the disbanded MAPPP SETA|
|13||Insurance Sector Education & Training Authority (INSETA)||No Change|
|14||Local Government Sector Education and Training Authority (LGSETA||Transfer of metro policing to SASSETA|
|16||Mining Qualifications Authority (MQA)||No Change|
|17||Manufacturing, Engineering & Related Services Education and Training Authority (MERSETA)||Move of Petrol Retail operations to W&R Seta|
|19||Safety and Security Education and Training Authority (SASSETA)||Incorporation of Metro Policing|
|20||Agriculture Sector Education and Training Authority (AgriSETA)||No Change|
|21||Public Service Sector Education and Training Authority (PSETA)||No Change|
|23||Services Sector Education and Training Authority (SERVICES)||No Change|
|25||Tourism, Arts & Culture,Hospitality and Sports Education and Training Authority (TACHSSETA)||Addition of Arts and Culture from disbanded MAPPP Seta|
|26||Transport Education and Training Authority (TETA)||No Change|
|27||Wholesale and Retail Sector Education and Training Authority (W&RSETA)||Addition of Petrol Retail outlets|
|New nr||Fibre Processing and Manufacturing SETA (FPM SETA)||New SETA incorporating clothing, footware, leather, furniture and printing operations|
A total of 21 SETA’s compared with 23 previously. We will be reviewing the Standard Industry Classification Codes for all our clients as soon as they are published to ensure that you are with the correct SETA as this could impact on your eligibility for discretionary grants in future
We will be starting new Leadership Development Training Courses in March as well as public courses for our Life Skills Training. Anyone who would be interested in attending or having staff attend should contact Tessa at our offices on 011-452 1707.
The Leadership Development Training course runs for 1 day per month for 10 months and is aimed at Line Managers. Content of the course includes Performance Management, Strategic Planning, Team Building, Coaching and Industrial Relations. We have been asked to provide training for Senior Managers and are putting together groups at this level currently.
Life Skills training is aimed at all staff and covers goal setting, career development and financial management. Information on these courses is available on our website at www.connold.co.za or by contacting Tessa at our offices.
According to the Sectorial Agreement for Domestic Workers Amendment which was sneaked in during December, with effect from 1 December 2010 the minimum wages for Domestic Workers in Area A (Urban Areas) is as follows:
For full time Domestic Workers:
R7.72 per hour | R347.79 per week | R1506.34 per month
For Domestic Workers who work 27 hours per week or less
R9.12 per hour | R246.30 per week | R1067.14 per month
Wages will be subjected to a CPIX plus 1% increase for the period 1 December 2010 to 30 November 2011. The CPI (excluding Owners’ Equivalent Rent) six weeks prior to 1 December 2010 has been 3,4%.This means that wages for this period was calculated as follows: CPI (excluding owners’ equivalent rent) plus 1% for Area A = 3,4% + 1% =4.4%.
We have been informed that the Department of Labour will be blitzing domestic homes to check on the working conditions of Domestic Workers. Please remember that it is law to have a letter of appointment for all domestic Workers (this includes gardeners). If you require a format for this letter please contact our office.
We would like to take this opportunity to wish you all a wonderful New Year. If you have any questions or comments about the proposed legislation please contact Jane or Desrae. We will keep you informed of any new developments