Business Studies Notes

Constitution

  • The Constitution (108 of 1996) is the supreme law of South Africa.
  • It overrides any other conflicting law or government action.
  • South Africa operates as a constitutional democracy, meaning:
    • Citizens have the right to vote, regardless of race or culture.
    • 'Democracy' implies ‘rule by the people’.

Key Areas of the Constitution Affecting Businesses

  • Human Rights
  • Inclusivity
  • Environmental Issues

Human Rights

General Principles

  • Human rights are inherent to all individuals by virtue of being human.
  • These rights are protected by the Bill of Rights, Chapter 2 of the South African Constitution.
  • Rights are inalienable – they cannot be taken away.
  • Everyone has inherent dignity, which must be respected and protected.

Examples of Human Rights

  • Children's Rights
  • Equality
  • Property Rights
  • Housing Rights
  • Healthcare Access
  • Education Access
  • Access to Information and Courts

Limitation Clause

  • The granting of rights can be limited.
  • This is because different people's rights may conflict.
  • Examples:
    • Freedom of expression may be limited to respect others' rights, including reputation.
    • Freedom of movement of someone with a contagious disease may be restricted via quarantine laws.
    • Religious symbols may be limited if they pose a public health hazard.

Inclusivity

  • The right to equal opportunities and inclusion in all aspects of life.
  • Freedom from discrimination.

Specific Applications of Inclusivity

  • Cultural information sessions to promote respect among employees.
  • Providing for different cultures in the workplace (e.g., food in canteen, entertainment).
  • Employing people from diverse cultural backgrounds.
  • Treating all employees equally, regardless of race, color, age, gender, disability, etc.
  • Equal access to opportunities, positions, and resources for all workers.
  • Developing equity programs and strategies to ensure equal treatment.
  • Treating workers with respect and recognizing their value.
  • Providing employment opportunities for people with physical challenges.
  • Accommodating people with physical challenges with facilities like wheelchair ramps.
  • Ensuring workers with special needs are not marginalized.
  • Being well-informed on how to deal with disabled employees.
  • Policies and programs should accommodate the needs of people with disabilities.
  • Creating an inclusive organizational culture.

Environmental Issues

  • Preserving a clean, safe, and sustainable environment.
  • Businesses should assess, control, and address physical, chemical, and biological environmental factors.

Factors Increasing Strain

  • Technology
  • Growing population
  • Urbanization
  • Increasing strain on natural resources

Collaboration

  • Government, businesses, and individuals must work together.

Three Environmental Principles

  • Supporting a precautionary (preventive) approach to environmental challenges
  • Promoting environmental awareness initiatives
  • Encouraging the development of environmentally friendly technologies (aligning with King Report and JSE’s Triple Bottom Line Reporting)

Specific Environmental Considerations

  • Adhering to laws and regulations to prevent generating profits at the environment's expense.
  • Considering pollution and other environmental issues in all business activities (e.g., waste disposal).
  • Involving in environmental awareness programs.
  • Altering production techniques to favor cleaner technologies.
  • Promoting nature conservation by caring for natural resources.
  • Minimizing pollution by re-using, reducing, and recycling.
  • Maintaining worker-friendly, safe physical working conditions that promote occupational health.
  • Ensuring adequate lighting and ventilation.
  • Servicing and maintaining machines regularly.
  • Educating people about hygiene issues.
  • Encouraging employees to do regular health checks.

Laws in South Africa

  • Labour Relations Act (LRA)
  • Basic Conditions of Employment Act (BCEA)
  • Employment Equity Act (EEA)
  • Broad-Based Black Economic Empowerment Act (BBBEE)
  • Skills Development Act (SDA)

Key Aspects to Know for Each Law

  • Aims and purpose
  • Positive implications
  • Negative implications

Basic Conditions of Employment Act, 1997 (BCEA)

Aims and Purpose

  • Improve working conditions of vulnerable workers.
  • Advance economic development and social justice by:
    • Regulating the right to fair labor practices outlined in the Constitution.
    • Establishing and enforcing basic employment conditions.
  • Addresses problems such as:
    • Inadequate protection for vulnerable workers
    • Child labor
    • Excessively long working hours

Vulnerable Worker Definition

  • Workers who lack decent working conditions, characterized by inadequate income, low productivity, and conditions that undermine their rights.

Working Hours

  • 45 hours per week.
  • Meal interval after 5 hours of work.
  • Maximum hours per day: 9 hours for a 5-day week and 8 hours for a 6-day week.
  • Overtime: Maximum 3 hours per day or 10 hours a week, organized by agreement.
  • Overtime payment: 1.5 times the normal rate or paid leave equal to time worked.

Public Holidays

  • Employees must be paid for public holidays falling on a working day.
  • If required to work, paid overtime at double rate or given time off.

Leave

  • 21 consecutive days of paid leave after every 12 months of continuous employment.
  • Leave cannot be converted into cash.
  • Maternity leave: Four consecutive months.
  • Family responsibility leave: 3 days per year for family death, illness, etc.
  • Sick leave: 30 working days per 36-month cycle.

Notice of Termination of Employment

  • 1 week's notice if less than a month has been worked.
  • 2 weeks' notice if less than a year has been worked.
  • 1 month's notice if a year has been completed.

Deductions

  • Employers deduct UIF, income tax, union fees, and other agreed-upon amounts.
  • May not deduct money without the employee's agreement.

Remuneration

  • Workers are paid accrued annual leave upon termination.
  • Retrenchment: Severance pay due, amounting to 1 week for every year worked.
  • Certificate of service indicating the employment period.
  • Each industry has its own minimum wage (Sectoral determination). As an example, R25.42 per hour for wholesale and retail (check with: https://wageindicator.org/salary/minimum-wage/south-africa/38962-wholesale-and-retail

Positive Impact of BCEA

  • Creates a framework of acceptable employment practices.
  • Promotes fair treatment of employees.
  • Encourages consultation between employers and employees.
  • Outlines minimum requirements forming the basis of employment contracts.
  • Provides clear guidance for employers on dealing with employment issues.

Negative Impact of BCEA

  • Drafting legal employment contracts is time-consuming and costly.
  • Restrictive employment contracts may lead to non-compliance.
  • Non-compliance results in penalties affecting cash flow.
  • Inability to force employees to work more than 45 hours a week may result in low productivity.
  • Forces businesses to comply with many legal requirements, increasing labor costs.

Employment Equity Act (55 of 1998)

Aim

  • Ensure equal job opportunities for all regardless of race, culture, language, age, religion, disability, etc.
  • Eliminate unfair discrimination in the workplace.
  • Provide affirmative action to correct past imbalances and ensure equitable representation.

Purpose

  • Forces businesses to employ more people from designated groups and promote them to managerial positions.
  • Aims to eliminate unfair discrimination.
  • Provides Affirmative Action to address imbalances of the past, ensuring access to employment, training, promotion, and equitable remuneration.

Affirmative Action Definition

  • Laws, programs, or activities designed to redress past imbalances and improve conditions for disadvantaged individuals and groups based on race, gender, and disability.

Designated Groups

  • Black people (African, Coloured, or Indian)
  • Women
  • People with disabilities

Unfair/Discriminatory Labor Practices Examples

  • Not employing a young woman because she might want to have children in the future.
  • Refusing employment based on religious beliefs or disability.
  • Doing HIV testing unless justified by the Labor Court.
  • Denying people access to the workforce based on gender/race/culture/etc.

Positive Implications

  • Fair distribution of employment at all management levels.
  • Equal opportunities for designated groups.
  • Attracting and retaining skills and expertise for new markets.
  • Promotes equal opportunity and fair treatment in the workplace.
  • Provides legal recourse for unfairly discriminated employees.
  • Motivates employees due to diverse/representative/inclusive workforce.
  • Encourages diversity by employing people from various racial backgrounds.
  • Prevents unfair discrimination, ensuring the workforce represents the demographics of the country.
  • Businesses are in a better position to negotiate contracts with the government.
  • Positively impacts BEE ratings of businesses.

Negative Implications

  • Enforcement procedures are complicated, involving inspectors and compliance certificates.
  • Fines can be imposed for non-compliance (e.g. R1 million).
  • Small businesses may lack expertise to implement all aspects of the Act.
  • Developing an EE plan is time-consuming.
  • May cause unhappiness among employees from non-designated groups.
  • Increases administrative burden due to mandatory employment equity reports every two years.
  • Positions may remain unfilled due to the lack of suitable EE candidates.

Black Economic Empowerment (BEE) Act

Aims and Purpose

  • Supports the development and economic empowerment of historically disadvantaged black people.
  • Enables wealth to be spread broadly across all population groups.
  • Provides a platform for equitable wealth distribution.
  • Targets inequality in the South African economy.
  • Specific BEE scorecards assess compliance in each industry.
  • Promotes black people to senior positions (ownership).
  • Applies to black people only.

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

  • Leads to wealth spread more broadly.
  • Empowerment goes beyond ownership, encouraging black involvement in development, management, employment equity, and skills training.

Core Components Three Aspects to the Act

  • Direct Empowerment – share ownership
  • Skills development – promotion & higher salaries for Black people
  • Indirect empowerment – preferential procurement and enterprise development

Elements of BBBEE Seven Elements to BBBEE Scorecard

  • Skills Development (20 points: focus training up-skilling)
  • Socio-Economic Development (5 points: carry out CSR)
  • Ownership (25 points: offer shares previous disadv)
  • Management Control (15 points: appoint black directors)
  • Enterprise & Supplier Development (40 points: use suppliers certain BEE level)

Employment Equity and Preferential Procurement

  • Business should employ suitable and qualified employees regardless of gender, race, culture, etc. Workplace should represent the demographics of the country. Voluntary employment equity targets are set and then monitored by the government. Businesses must have an Employment Equity Plan in place
  • Support the cash flow of small suppliers by offering them preferential terms of payment. Develop and implement a supplier development plan/supply chain.

Link: https://www.fidelityverification.co.za/5-pillars-of-b-bbee/

Ownership

  • When determining the level of black ownership, a business will score points based on the following:
    • The extent to which black people can influence the strategic direction of the business through their shareholding
    • The current net value of their shares
    • Bonus points are awarded if any of the black shareholders are new entrants (who have not previously benefited from a B-BBEE deal)

Management Control

  • Part of maximizing points for Management Control on the B-BBEE Scorecard includes the measurement of voting rights of board members are broken down into black board members (2 points for 50% of all voting rights), black female board members (1 point for 25% of all voting rights), black executive board members (2 points for 50% of all executive board members) and black female executive board members (1 point), black senior management (2 points), black female senior management (1 point for 25% of all executive board members).

Skills Development

  • Skills development measures a business’s investment in the training and development of black employees. Only specific types of learning programmes and learnerships qualify when claiming points on the skills development scorecard.

Enterprise Development

  • If the business offers support programs, then you can claim points on the scorecard. Business must create jobs as economic social development promotes local manufacturing. Businesses are encouraged to invest/support Black owned SMME. Contribution can be monetary, e.g. loans/investments/donations. Contribution can be non-monetary, e.g. consulting services/advice/entrepreneurial programs, etc. Develop the business skills of small/black owned suppliers, e.g. sales techniques, legal advice, etc.

Socio-Economic Development

  • If the business offers support programs, then you can claim points on the scorecard. Businesses should be focused on critical areas which can affect growth and development in the country e.g. environmental awareness, education, housing, poverty, unemployment, etc. They should distribute scarce CSI resources to selected beneficiaries in the community.

Positive Impact of BBBEE

  • Good rating improves image.
  • Boosts staff morale by developing skills + potential.
  • Used as a tool for marketing the business to others looking for BBBEE compliant suppliers.
  • Improves income distribution, providing better living standards among the growing black middle class. (quality of life

Negative Impact of BBBEE

  • Investment & ownership issues cause antagonism between shareholders.
  • Lead to corruption, nepotism & cronyism(appointment of friends to important positions, regardless of ability)
  • Employees get jobs based on the BEE rating rather than qualifications.
  • Implementation has been poor and the objective of uplifting masses has not been achieved.

Skills Development Act (97 of 1998) and Skills Development Levies Act (9 of 1999)

  • SA skills profile compares poorly with other countries.
  • The skills shortage= 20% EAP is skilled or highly skilled, while 80% is semi-skilled, unskilled, or unemployed. Reason for low levels of investment.
  • General schooling & good efforts of businesses are insufficient.
  • To address these problems, the SDA & SDLA were passed by parliament.

Aims/Purpose SDA

  • Assists workers to improve skill levels & qualifications whilst earning an income
  • Use the workplace as a place of learning
  • Ensure that quality training is offered
  • Improve employment opportunities for disadvantaged people
  • Encourage workers to get involved in training programs

SAQA and NQF (Minister of Education Minister of Labour developed -1995)

  • SAQA (South African Qualifications Authority Act)= aims to improve the quality of & access to learning at school or in the workplace. Responsible for developing NQF Involves formulating criteria for registration of educational + service providers.
  • NQF (National Qualifications Framework)= Aims to ensure people have access to education of an academic/vocational (job-related) nature and receive credit for learning taken place.

National Skills Development Strategy Human Resources Development Strategy

  • Encourages good quality training in the workplace to ensure on-going development of skills
  • Indicates how SETAs should use the money allocated from the Skills Development Levy
  • Builds/Provides career/vocational guidance/training centers
  • Addresses skills shortages in the South African workforce
  • Aims at achieving faster economic growth/higher employment levels and reduced levels of poverty.

SETAS

  • Each buss sector formed Sector Education & Training Authority (SETA)
  • Prepare training programs, learnerships & control funds in that sector
  • Obtain funding from skills development levies paid by employers in the business with a payroll of more than R500,000 p.a i.e. Levy= 1% total payroll collected by SARS
  • Each SETA must: approve learnerships & Workplace Skills Programmes (WSP) Aim= provide funds for employers & trainers ensure education & training happening in their sector

Application of SDA in a business Enterprise

  • Workplace Skills Plan (WSP)
  • Annual Training Report (ATR)

Application of SDA in a business

  • Employers are entitled to claim part of Skills Development Levy back when providing skills development programs.
  • Workplace Skills Plan (WSP)= identify areas skills are needed= formulate a plan how to address shortage skills. Buss submit Annual Training Report (ATR) and WSP to claim the refund.
  • The mandatory (compulsory) grant (must be paid by the Seta if the company fulfills the requirements) of 20% of what was paid as skills levy may be claimed back.

Positive Implication

  • Promotes a motivated & well-trained workforce.
  • The business [is] more successful & profitable.
  • Workers learn while working.
  • Workers [are] more skilled- promoted+ improve income+ lifestyle.
  • Buss [Businesses] contribute to reversing educational imbalances of the past.

Negative implications

  • SETA accredited (recognised/approved) training programs [are] hard to obtain.
  • The 1% Skills Development levy [is] an additional cost for the business.
  • Labour costs increase [with] more admin staff.
  • The application procedure [is] complicated.

INDUSTRIAL RELATIONS

  • Industrial relations refers to the relationship [and] interaction between employers and employees in industry (business) and political decisions and laws that affect it.

Key Aspects of the Labour Relations Act Include

  • Purpose
  • Trade Unions
  • Purpose of trade unions
  • Function of trade unions
  • Collective bargaining
  • Grievance procedures
  • Industrial action
  • Unfair treatment
  • Discipline
  • Reasons for Dismissal

LABOUR RELATIONS ACT (66 OF 1995) 2.1 Purpose/Aim

  • Contains the basic rules and mechanisms used to control communications,

  • Bargain/ negotiate relationship between employers + employees

  • Enforce (make compulsory) fundamental rights granted by [the] Constitution

  • Provides a framework/structure for labour relations between employers and employees.

  • Promotes workplace forums to accommodate employees in decision making.

  • Promotes simple procedures for the registration of trade unions and employer organizations.

  • Establishes the Commission for Conciliation, Mediation, and Arbitration (CCMA) for dispute resolutions.
    LRA covers issues

  • Trade Unions

  • Collective Bargaining

  • Grievance Procedures

  • Industrial Action (strikes/lockouts)

  • Unfair treatment

  • Discipline

  • Reasons for dismissal
    What is NEDLAC?

NEDLAC (National Economic Development and Labour Council

  • Ensures government, organized labor (TU) & employers are in agreement on labor policies that will impact social and economic levels
  • Aims
    • Promote economic growth
    • Reach consensus regarding labor legislation
    • Promote social& economic policies result in improvements for labour
  • Within the legal framework established by the State, there is collective bargaining between trade unions and employers’ organizations.
    Like a big meeting place for important people from different parts of the country to talk and make decisions about work and the economy. NEDLAC brings employers, employees, and government together.

UNFAIR TREATMENT

  • The LRA Act defines 4 kinds of treatment which amount to unfair labor practice:
    1. Unfair discrimination based on arbitrary reasons; (prejudiced/unfair), race, gender, age, religion,
      • Two exceptions:
        • Affirmative action or Employment Equity
        • Inherent requirements of the particular job.
    2. Unfair conduct: promotion/training.
    3. Unfair suspension: supervisor + employee disagree and only employee is suspended.
    4. Failure or refusal of an employer to reinstate [a] former employee. Retrenched worker re-employed if [the] job becomes available again.

GRIEVANCE PROCEDURES

  • Route of communication followed by [the]worker [to] lodge formal complaints.
  • Consult [a] shop steward (a person elected by workers, for example in a factory, to represent them) before submitting [the] complaint in writing.
  • [If] Not solved in [the] department, [it is] communicated to upward levels of authority in [the] company or structures outside the company e.g. Bargaining Councils, CCMA, Labour Court or Labour Appeal Court.

Bargaining council:

  • Trade Unions
    Trade Unions are associations formed by workers in a particular industry/trade to protect and promote their interests in the workplace.
  • Workplace forum:
  • Statutory councils:
  • Employer Organisation:
  • CCMA:

Trade Union

  • DEFINITION:
    A group of workers in a specific industry who join forces to improve workingconditions. Constitutional Right: In South Africa, the Constitution guarantees the Freedom of Association. This means employees have the right to join trade unions, and employers have the right to join employer organisations.

  • Exclusions:
    Certain workers, such as those in essential services like the National Defence Force,
    are not allowed to join trade unions because their work is crucial for public safety.

  • Employer Organisation
    an Employer Organisation is a group that allows employers in a specific industry to worktogether.
    These organizations negotiate with trade unions to agree on working conditions, wages,and other employment matters. E.g. NAPE, COFESA

  • Trade Unions Registration and Rights
    If a Trade Union, it must meet certain requirements

  • Proper Constitution: The trade union must have a proper set of rules (constitution) that:

    • Follows the Labour Relations Act (LRA).
    • Does not try to avoid any laws.
    • Cannot be affiliated with a political party.

  • Benefits of Registration:
    Once registered, a trade union gains specific rights

    • It can participate in Bargaining Councils or Statutory Councils.
    • It can negotiate wages and working conditions for its members.
    • Agreements made through these negotiations are legally binding.

  • Employee Rights and Trade Unions
    Freedom to Join: Employers cannot require employees to stay out of a trade union as a condition for their employment. Membership Fees: Employers must deduct trade union membership fees from employees' wages and pay these fees to the trade union. Right to Join: All workers have the right to join a trade union, except those in essential services like theDefence Force.
    Union Activities: Employees have the right to participate in union activities and hold union meetings at the workplace.
    Purpose of Trade Union Functions of Trade Union
    Engage in collective bargaining employer behalf of members
    Advise & represent members on:

  • Conditions of service

  • Grievances

  • Disciplinary issues Other labour relation issues
    Protect rights workers – ensure fair treatmentImprove conditions of employment:
    SalariesEmployee benefits (medical aid) Job security Physical work environment (safety)
    Represent members in negotiations; & Disciplinary issues e.g. hearing or court Advise labour relation issues; procedures retrenchment, promotion
    Strive [to] achieve industrial peaceDefinition: The handling of grievances through negotiations between employers

COLLECTIVE BARGAINING

Handling of grievances through negotiations between employers and Trade Unions. Labour disputes cannot be eradicated BUT procedures can be created to prevent disputes between employers+ labour from developing into strikes & lockouts.
Provides a framework/structure for labour relations between employers and employees.
Bargaining council:
Trade Unions
Workplace forum:
Statutory councils:
Employer Organisation:

WHAT IS THE CCMA?

An independent body established by the LRA to assist in resolving labor disputes.

  • Independent organisation acts dispute resolution body promotes cooperation employers + employees. Disputes are resolved quickly.
  • Two-step procedure:
    1. Conciliation
    2. Arbitration / adjudication / industrial action when the first step is unsuccessful.
      *Conciliation: parties in dispute get together with neutral third party.Help parties reach agreement, does not decide who right/wrong.
      Mediation: make recommendation (not enforced) to parties if conciliation is unsuccessful
      Arbitration: Third party makes decision who is right. Decision is binding
      Adjudication: Dispute goes to Labour Court instead of arbitration. Party can appeal against [the] decision of [the] Labour Court – going to Labour Appeal Court (LAC) if [the] appeal is granted. RecapoWhat is a trade union? Who can belong to a trade union? What is collective bargainingWhat does collective bargaining aim to achieve? What are two functions of a trade union? What does the CCMA stand for?

INDUSTRIAL ACTION STRIKES

  1. Must be two or more employees (Single worker cannot strike).
  2. Can be workers from the same or different employers (must have a common work-related purpose).
  3. Reason for strike to solve grievance/dispute a matter of mutual interest.
  4. Action can be partial or complete refusal to work.

Possible reasons for a strike

  • Wage increases
  • Demand to recognise [the] trade union
  • Unhappiness regarding one-sided changes by [the] employer to working conditions
  • In sympathy with [a] protected strike by another party.
  • Issues common national interest e.g. [a] COSATU strike over service delivery

PROTECTED STRIKES

  • Strike action can be protected/unprotected.

  • [If] Protected strike employees enjoy benefits that employees in an unprotected strike do not have
    A procedure to be followed for a strike to be protected

  • Any collective agreement regarding dispute resolution procedures must be followed. If not agreed to, the LRA procedures MUST be followed

    • Issue in dispute referred in writing to CCMA/bargaining Council
    • Above settle dispute through conciliation in 30 days
    • If it fails - issue a certificate [stating the] dispute not resolved. 48 hours notice in writing of proposed strike given [to the] employer – or 7 days notice if the state is the employer

A STRIKE WILL NOT [BE] PROTECTED IF

  • A collective agreement states workers may not strike over the issue at hand
  • The correct procedures [have] not been followed
  • If the arbitration decision is ignored
  • The parties are engaged in an essential service
  • Employees may not be dismissed in [a] protected strike BUT may be dismissed for misconduct during a strike([like] intimidation or violence/damage to property)

Essential Service

The LRA defines an essential service as
*Service [that if] interrupted [would] endanger life, personal safety, health, of part population;
Parliamentary service; South African Police Services

Protected strike benefits

*Employees [cannot be] dismissed/fired.
*The employer cannot apply for a court interdict (order) to stop the strike [except for] misconduct during the strike ex violence
Not sen as a breach of contract, employer cannot claim damages for loss of production
*Does not have to pay employees *
Employers lock-out employees Whether protected
or unprotected strike, the principle of no work, no pay
will always apply!

Types of Industrial Action

What is the following types of Industrial Action
* Strike
*Go-slow
*Work-to-rule

  • Intermittent
  • Overtime ban
    *Picketing
    *Lock-out:

Definitions of Industrial actions

  • Strike = Employees (group) put temporary collective pressure on [the] employer agreeing to their demands, [i.e.,] higher wages
  • Go-slow= Employees continue to work but at a significantly slower pace to slow the service
  • Work-to-rule=Employees strictly follow work minimum regulations, Employees Avoid any extra duties or overtime
  • Intermittent=Employees stopping work repeatedly [for] short periods minimizing on strikers [financial] impact
    • Overtime=Employee refuses to work beyond normal hours impacting employer
      *Picketing = Groups demonstrate at work Employees might chant slogans, and try to persuade others to come in
  • Lock-out =Employee has no entry Employers prevent employee from work and no pay is given

Picketing and Secondary Strike

  • Group employees demonstrating outside [the] place of work [to show]dissatisfaction [on a] certain issue. Work cannot be disrupted.
  • [For] Picketing, only [a] registered trade union may organize [one]. Secondary Strike (Sympathy strike) [These] Employees strike in support of a strike by other employees. Will be protected if: Main strike [is] protected Strikers give 7 days’ notice

Examples of unfair dismissals:

  • Ending [a] Contract without notice. Refuse [an] employee [to] return to work after Maternity leaveConstructive dismissal: working environment [is] impossible [to] tolerate, Forces [an] employee [to] resign (involves an employer making substantial changes to the employment contract, such as: a demotion; altering the employee's job description or working conditions; lowering an employee's compensation; changing hours of work;)
  • Took part in activities of [a] Trade unionTaking part in [a] protected strikeArbitrary ground e.g. race, age, religion etc. Disputes over dismissalsEmployee [may] refer [a] dispute over constructive, misconduct, incapacity, and operational dismissal to [the] CCMA.Misconduct or incapacity [that is] unresolved[can be] refer[red] to arbitration.Disputes about unfair treatmentAll forms [of] unfair treatment [should] be referred primarily to conciliation e.g. CCMA if dispute is [about] unfair discrimination remains unresolved -[it should be] referred to [the] Labour CourtOperational reasons[can] refer to [the] Labour CourtOther kinds of unfair treatment can be referred to ArbitrationRemedies for unfair dismissal
    Reinstate = [if you give a] Job back *unless if the Employee doesn’t want it, its not procedures and it becomes into intolerable relationshipCombines Compensation= Pays (employee/month’s salaries) or Compensation (job back)
    Control measures (disciplinary + grievance
    procedures) ensure staff perform their maximum potential.Will know what expected + consequences
    Purpose of discipline:
    Maintain order + ensure cooperationAvoid future problem employees no what acceptable unacceptable behaviour
    Change behaviour where necessary
    SA Labour law protect rights employees. Dismissal last resort
    *Procedula FairnessSubstanti ve FairnessSubstanti ve FairnessProcedura l FairnessDismissing worker meet requirementsSubstantive fairness: valid reason e.g. theft Procedural fairness: procedures followed notifying employee of dismissal/disciplinary hearing + procedure at hearing itself.Disciplinary proceduresFramework whereby management ensure workers get fair hearing and opportunity to defend themselves against accusations of contravening company’s code of conduct.