Human Capital and South African Labour Legislation

Vocabulary flashcards covering human capital management, recruitment, selection, remuneration structures, performance evaluations, dispute resolution, and South African labour legislation (LRA, EEA, BBBEE, SDA, BCEA).

Manpower planning

A top-down process where the strategic plan determines what skills and workforce numbers are needed to achieve the goals of the business.

Recruitment

The procurement process of attracting the most competent staff to apply for vacancies in an organization.

Selection

The process of identifying and choosing the most competent staff from a pool of job applicants.

Job analysis

The identification and examination of the tasks and responsibilities associated with each specific job.

Job description

A written document detailing the job title, summary of the job, duties, working conditions, and the degree of supervision required.

Job specification

A written summary outlining the specific qualifications, skills, and experience needed by a person to perform the job.

Skills gap

The difference between the skills needed by a business and the actual skills available among employees.

Internal recruitment

The process of filling vacancies by transferring an existing employee to a new position or promoting them within the organization.

External recruitment

The process of looking outside the business to find candidates via employment agencies, advertisements, educational institutions, walk-ins, or head-hunting.

Work sample test

A practical assessment used during candidate screening that measures an applicant's actual ability to do their job.

Psychometric test

A specialized pre-employment test designed to measure a candidate's mental ability, aptitude, and personality traits.

Medical examination (Selection)

A health evaluation conducted only if specific physical or medical health requirements are an inherent requirement for the job.

Induction

A structured program conducted with all new employees to familiarize them with business culture, policies, procedures, facilities, and staff.

Salary

A fixed amount of remuneration paid to permanent or temporary workers once a month on a predetermined date.

Wages

Remuneration paid on a daily or weekly basis, calculated as a fixed sum, on the basis of hours worked, or as a piece rate.

Commission

An incentive-based form of payment where employees receive a percentage of sales or output to motivate higher performance.

Bonus

An additional sum of money paid beyond basic pay to reward the hard work and performance of employees.

13th cheque

A guaranteed bonus where an employee's annual salary is divided into $13$ equal portions instead of $12$, with two portions paid out in December.

Cost to Company (CTC)

A remuneration package where the employer pays a comprehensive salary without additional benefits, leaving the employee free to structure their own deductions and payments.

Cost plus benefits

A remuneration structure where the employer pays a basic salary plus separate contributions toward employee benefits such as pension, medical aid, meals, and housing.

Training

A targeted learning process focused on ensuring that employees acquire the specific skills needed to perform their current job duties.

Skills Development

A broad learning process that targets a wider range of competencies, capabilities, and attitudes that are not strictly job-specific.

Learnership

A learning and work arrangement that allows an employee to gain practical work experience in a business while studying toward a formal qualification.

Performance appraisal

An evaluation tool where an employee's job performance is systematically evaluated against mutually agreed targets by the employee and manager.

Personal Improvement Plan (PIP)

A formal action plan agreed upon when targets are not met, designed to address weaknesses and outline steps to improve employee performance.

Exit interview

A discussion conducted when an employee leaves the company to identify organizational shortcomings and improve future employee retention.

Constitution of the Republic of South Africa (Act 108 of 1996)

The supreme and fundamental law of South Africa that guarantees human rights and establishes the Bill of Rights.

Limitation Clause

A constitutional provision that permits the right to non-discrimination to be limited so that Previously Disadvantaged Individuals (PDIs) can receive preferential workplace treatment to redress past economic imbalances.

Labour Relations Act 66 of 1995 (LRA)

South African legislation that enforces constitutional labour rights, advances economic development, labour peace, social justice, and democracy via collective bargaining frameworks.

Progressive discipline

A disciplinary approach where the mildest form of corrective action is implemented first, escalating to more severe sanctions if the unacceptable behaviour persists.

Grievance procedure

A formal, predetermined communication system that allows an employee to bring forward and resolve employment-related grievances within the business.

Incapacity

A legally recognized ground for dismissal arising from an employee's inability to meet required work standards due to either poor work performance or poor health.

Misconduct

A ground for dismissal where an employee deliberately or negligently violates a valid, reasonable workplace rule that they knew or should have known about.

Operational reasons (Retrenchment)

A 'no-fault' ground for dismissal based on economic reasons like cost reduction, departmental restructuring, or technical factors like automation.

Constructive dismissal

A situation where an employer makes working conditions so intolerable that the employee feels they have no option but to resign.

Industrial relations

The relationship between employers, employees, and institutions such as government bodies, aimed at preserving industrial peace and workplace functionality.

Collective bargaining

The formal negotiation process between an employer (or employers' organization) and a trade union to determine terms of employment, wages, and working conditions.

Strike

The complete, concerted refusal to work by two or more employees for the purpose of resolving a grievance or dispute regarding a matter of mutual interest.

Go-slow

A form of industrial action in which employees continue working but deliberately reduce their speed of work and productivity rate.

Work-to-rule

A form of industrial action where workers strictly execute the bare minimum requirements of their contracts and safety rules, doing nothing more or less.

Intermittent strike

Industrial action in which employees repeatedly start and stop the same strike over a given timeframe.

Overtime ban

A collective refusal by employees to work any overtime beyond normal working hours.

Picketing

A public demonstration staged by striking workers outside the employer's premises in compliance with the Code of Good Practice on Picketing.

Secondary strike (Sympathy strike)

A strike by workers in support of a strike organized by other employees against their own employer.

Lock-out

An action where an employer physically excludes employees from the workplace to compel them to accept demands or terms of settlement.

Commission for Conciliation, Mediation and Arbitration (CCMA)

An independent statutory dispute-resolution body funded by NEDLAC that resolves labour disputes through conciliation, mediation, and arbitration.

Arbitration (CCMA)

A legal dispute-resolution proceeding where a neutral commissioner issues a final, legally binding award to solve an unresolved labour dispute.

Bargaining council

A body formed under Section $28$ of the LRA by trade unions and employers' organizations in a specific sector to negotiate agreements, resolve disputes, and draft sector policies.

Statutory council

A sector council requiring at least $30\%$ representative threshold of employers and employees, whose agreements require the approval of the Minister of Labour to be extended across the sector.

Workplace Forum (WPF)

A joint consultative body established in businesses with $100$ or more employees to consult and make joint decisions on operational matters excluding wages.

National Economic Development and Labour Council (NEDLAC)

A council promoting social equity and inclusive economic decision-making that functions as a dispute-resolution body for socio-economic policy disputes under Section $77$ of the LRA.

Employment Equity Act 55 of 1998 (EEA)

Legislation enacted to redress historical workplace disadvantages through Affirmative Action and ensure equitable representation across all job categories.

Affirmative Action (AA)

Measures aimed at ensuring designated groups (Blacks, Coloureds, Indians, Chinese, women, and people with disabilities) gain preferential workplace opportunities.

Broad-Based Black Economic Empowerment Act 53 of 2003 (BBBEE)

Legislation created to integrate the black majority into the economic mainstream by establishing pillars including ownership, management, and skills development.

Skills Development Act 97 of 1998 (SDA)

Legislation designed to improve employment prospects for previously disadvantaged individuals and cultivate high workplace competencies via a national training framework.

Sector Education and Training Authority (SETA)

A statutory body that oversees industry-specific education and training, approves Workplace Skills Plans, and allocates training funds.

Skills Development Levy (SDL)

A $1\%$ payroll levy paid by employers to SARS, of which $20\%$ goes to the National Skills Fund and $80\%$ is transferred to the relevant SETA.

Workplace Skills Plan (WSP)

An annual training document compiled by a business outlining identified skills gaps and planned training interventions submitted to the SETA.

Annual Training Report (ATR)

A report submitted by an employer to their SETA verifying which training interventions from the previous year's Workplace Skills Plan were successfully executed.

Basic Conditions of Employment Act 75 of 1997 (BCEA)

Legislation that establishes statutory minimum floors for working conditions, including work hours, overtime, leave entitlements, and termination rules.