We are entering the second half of 2003. It seems to have been a busy year for all our clients so far and, we hope a successful one.
CALCULATION OF EMPLOYEE’S REMUNERATION
The Department of Labour has been very busy passing new legislation and recently published another amendment to the Basic Conditions of Employment Act. We have attached a copy of the Act for your information.
It is the first real definition of remuneration that has been gazetted and we feel sure that it will be extended to other acts, particularly the PAYE and UIF acts, but it will also impact on the WCA act.
Essentially the amendment arises from disputes over severance packages and retrenchment packages at the CCMA. A definition of what is considered part of remuneration and what is excluded was required. This amendment therefore defines what is included when paying retrenchment packages, notice pay in lieu of notice, severance packages and leave pay.
Things to note are:
- The act is effective from 1 July 2003.
- Leave pay paid on leave accrued before 1 July 2003 can be based on gross salary, after 1 July 2003 it is paid on the new definition.
- It is important to define in letters of appointment the value of payment in kind of any sort, but especially for housing or accommodation, particularly with domestic workers.
- It is important to define if company cars or car allowances are granted to enable an employee to work, i.e. tool of trade as these are excluded from remuneration.
- The wording of performance bonuses or production bonuses must clarify whether it is to form part of the remuneration or not. If it is part of the remuneration pro-rata payments must be made when the employee’s employment is terminated for whatever reason.
Most of the SETA’s are currently finalising the Workplace Skills Plans. We are pleased to note that payments to clients for submitting WSP and Interim Training Reports are working smoothly. We are also pleased to note that the SETA’s are working hard and involving the smaller companies in the process.
It is now time to consider learnerships as more of these have become available and to plan for the application of Diversity Grants. For more information on both these aspects please contact Jane (082 977 5610) who will assist with the process.
The SETA’s are under a great deal of pressure to improve the number of learnerships registered and to give attention to national skills needs, particularly Aids and HIV awareness and adult basic education and training.
As a company we have identified a need for Life Skills Awareness and have developed a training programme for this purpose. The programme focuses on debt management, goal setting, business presentation, attitude and career growth. If anyone is interested in more information with regard to the programme please contact Debbie or Lynette at the office (011-452 2175).
Our company has had a long association with Stephen Renecle & Associates, particularly with regard to the development of supervisory and leadership course material.
Stephen has also been involved for many years in the development of programmes for management training and he has recently launched a new product. The product is aimed at keeping busy managers up to date with the most important new management thinking from across the world. This is achieved through a twice quarterly periodical covering the latest management thinking in three pages, a quarterly workshop discussing the implications of this management thinking on your business and an information service allowing company’s to source articles, books and periodicals.
If you are interested in knowing more about this service please contact Lynette at the office and we will arrange to have a sample of the first periodical sent to you.
In February this year we advised our clients that they would have to develop a “Manual 51” in terms of the requirements of the Access to Information Act. This manual had to be e-mailed, faxed or posted to the Human Rights Commission and then published in the Government Gazette. The good news is that the Government has decided that it would be too costly and too difficult to publish it in the Government Gazette, the bad news is that the deadline for submitting the manual is 31 August 2003. If you have not yet completed you manual or require a format for completing it, please contact Lynette or Debbie for assistance.
Wishing you success for the months ahead.