Macro Environment: Impact of recent legislation on business

SDA, LRA, EEA, BCEA, COIDA, BBBEE, NCA, CPA

SDA

The Skills Development Act (No. 97 of 1998)

LRA

The Labour Relations Act (No. 66 of 1995)

EEA

The Employment Equity Act (No. 55 of 1998)

BCEA

The Basic Conditions of Employment Act (No. 75 of 1997)

COIDA

The Compensation for Occupational Injuries and Diseases Amendment Act (No. 61 of 1997)

BBBEE

The Broad-Based Black Economic Empowerment Act (No. 53 of 2003, as amended in 2013)

NCA

The National Credit Act (No. 34 of 2005)

CPA

The Consumer Protection Act (No. 68 of 2008)

Affirmative action

the policy and process of providing preferences in employment opportunities for previously disadvantaged people

Bargaining councils

negotiations between trade union representatives and employer oganisations on labour related issues such as demand for higher wages or improved working conditions

BBBEE Scorecards

BBBEE scorecards measure a business’s compliance with BBBEE and certificate is issued to the business that stipulates their BBBEE rating

Collective agreement

an agreement entered between a trade union and an employer organisation concerning the terms of employment for specific matters

Compensation Fund

this fund provides compensation to employees who are injured or contract diseases through the course of their employment

Credit providers

businesses that sell goods and services on credit

Debt counsellors

provide professional counselling to private members of the public/businesses that are overindebted/offer methods of debt repayments

Discrimination

the intentional unjust/prejudicial/differential treatment of people/social groups based on the grounds of race/age/gender/sexual orientation/disability/religion.

Disputes

a disagreement between groups of people in the workplace

Employment contract

a legally binding agreement between the employer and employee

Equity

fair and equal treatment in the workplace/society

Learnership

theoretical/practical training opportunities that leads to a recognised occupational qualification

Levies

imposition/collection of money by the government, usually in the form of tax

Lockout

occurs when the employer prevents (literally locks out) employees from entering the business premises during strike action and labour dispute resolution processes to prevent looting and damages to property

National Credit Regulator (NCR)

the regulatory body that applies the NCA, educates consumers about their rights, and monitors/administers and ensures adherence of the NCA and the credit industry

Ombudsman

a state official responsible for investigating complaints of private citizens/members of the public that are made against businesses/organisations/government

SETAs

a vocational skills training organisation in South Africa that identifies/outlines/manages and creates learnerships, internships, and apprenticeships within its jurisdiction

Strikes

partial/complete concerted refusal to work by a group of employees for the purpose of remedying a grievance/dispute regarding any matter of mutual interest between the employer and employees

Workplace injuries

injuries that take place while conducting/performing workplace duties/responsibilities

The National Skills Development Strategy (NSDS)

aims to develop skills, improve education, support and provide training to the South African workforce, improve economic growth and in the process alleviate poverty and reduce unemployment

The Human Resources Development Strategy (HRDS)

aims to address equity and to reduce poverty and inequality in South Africa by addressing skills deficits in the economy and implementing intervention plans to develop human resources to improve the South African economy

Purpose of the SDA

improves job prospects of previously disadvantaged people; encourages businesses to improve the skills of employees

Positive impact of the SDA

increases the number of skilled workers; improves workplace productivity

Negative impact of the SDA

time-consuming, prescriptive and expensive; difficult to monitor

Actions regarded as non-compliance of the SDA

preventing employees from gaining access to learnership; falsifying documentation

Consequences for non-compliance of the SDA

may receive a compliance order; may receive large fines

Ways in which business can comply to the SDA

display a summary of the Act; pay 1% of payroll to SDL

Special aspects of the SDA

SETAs and learnerships; NSDA and HRDS

Purpose of the LRA

promotes fair labour practices; promote collective bargaining

Positive impact of the LRA

protects the rights of the businesses; prevents unfair workplace discrimination

Negative impact of the LRA

reduces global competitiveness; decreases productivity and profitability

Actions regarded as non-compliance of the LRA

dismissing employees unfairly; preventing employees from joining trade unions

Consequences or non-compliance of the LRA

may receive a compliance order; may be forced into dispute resolution

Ways in which businesses can comply to the LRA

display a summary of the act; allow employees to join trade unions

Special Aspects of the LRA

rights of employers; rights of employees