As we enter the last quarter of the year there seems to be a great deal of energy devoted to passing legislation which will have an enormous impact on the way in which we run our businesses. We await the implementation of E-tolls with interest. We also await the market’s reaction to how the additional expense will be treated, particularly where business travel for employees and the cost of delivery or courier charges are concerned.
Parliament has been very busy passing legislation which was first introduced as bills in 2010 and then were referred back to NEDLAC for refinement. The Bills were approved by NEDLAC towards the end of 2012 and have now seemingly been rushed through parliament.
The following pieces of legislation have been passed by parliament in the last six months:
|Level||BEE Score Current||BEE Score 2014||BEE Recognition Level|
|1||> 100||> 100||135% (e.g. R1-00 = R1.35)|
|2||85 – 100||95 – 100||125% (e.g. R1-00 = R1.25)|
|3||75 – 85||90 – 95||110% (e.g. R1-00 = R1.10)|
|4||65 – 75||80 – 90||100% (e.g. R1-00 = R1.00)|
|5||55 – 65||75 – 80||80% (e.g. R1-00 = R0.80)|
|6||45 – 55||70 – 75||60% (e.g. R1-00 = R0.60)|
|7||40 – 45||55 – 70||50% (e.g. R1-00 = R0.50)|
|8||30 – 40||40 – 55||10% (e.g. R1-00 = R0.10)|
|Not Compliant||< 30||< 40||0% (e.g. R1-00 = R0)|
The cost of compliance to the new scorecard is high and the requirement for QSE’s to have Black Ownership is going to be a challenge for many smaller Companies. Rating agencies will be using the old codes for ratings which need to be done prior to October 2014. The Industry Charters remain unchanged at this stage.
If you have any questions with regard to the new codes, please contact Jane Alevizos.
Next year is going to be challenging as we adapt to the new legislation that is going to be promulgated. We will be holding a series of workshops with regard to the new legislation once they have been promulgated.
We will be starting the process of finalising skills reports and collecting information for skills plans next month as the submission date for next year will be 30 April 2014 and not the usual 30 June deadline. The new spreadsheets will be sent to you in the first week of December 2013 and approval of the reports by Training and Employment Equity Committees should be finalised by the end February 2014. Some SETA’s have informed us that they will be amending their training year to run from 1 January to 31 December in future. The SETA’s that have confirmed a change in the training year are:
Merseta, FPM, W&R Seta, Inseta, Services, HW Seta, CETA, Bankseta, MICT , Cathsseta, Fasset
Their explanation for this is that it makes training easier as it then falls in line with the academic year. The SETA’s do seem to be adjusting to the changes in grants and the criteria for applying for additional grants appears to be resolved in most of the SETA’s
2014 will be a reporting year for all Companies. Although the legislation is changing and all designated companies will be required to comply with the new legislation, we are not aware of any proposed change to the reporting format. There are concerns with the format for reporting of earnings and given that there will be a fine if a company is proven to be failing to pay equal pay for equal work in the new act, we do anticipate that the Department of Labour will be revising the format to obtain more relevant information.
In order to plan for the early reporting required on skills development and the need to prepare EE Reports, we suggest that Employment Equity meetings be scheduled as follows:
Please contact Tessa or your Connold Consultant to schedule dates for the meetings.
Our alliance with Select Strategy Inc., a company based in Boston USA is growing. Their Performance Management system is Computer Based and can be adapted to any work place and allows companies to control and drive their performance management measures more effectively. If you are interested in seeing a demonstration of the system please contact Desrae or Kevin.
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 6.6%, and the determination is CPI +1% so the increase has been set at 7.6% for the year. The new minimum rates for Domestic workers (based on a 45 hours week) are as follows:
R 9.35 per hour an increase of 7.60% over last year
R 433.35 per week an increase of 7.52% over last year
R1877.79 per month an increase of 7.54% over
We wish you a happy holiday and safe travelling if you are going away. We hope that 2014 will be a prosperous and happy year for everyone.
Desrae & staff