Organization-Level HR Strategies

Organisation-Level Perspectives

• This module discusses strategy, policy, practices and procedures at the organizational level

HR/Employment Relations Strategy

• It is a long-term approach that is directly linked to an organization's competitiveness and future success
• Serves as a set of decisions and actions resulting in the formulation and implementation of plans
• These plans are designed to help a company achieve its objectives

HR Strategy and Policy Link

• HR/ER strategy should not only align with business strategy, but should be a fundamental component of it

Employment Relations Policy

• It involves the transition from formulating an HR strategy to implementing it effectively
• It connects planned organizational goals with concrete actions necessary for implementation

Difference Between HRP and LRP

• Human Resources policies focus on the individual employee and include recruitment, selection, appointments, and functions
• These are all designed to utilize and develop the potential of all employees, while also providing care, rewards, and conservation
• Labor Relations Policies relate to the relationship between management and the workforce as a whole
• It addresses trade unions, worker representation and participation, rights and duties of the employer and employees, and their representatives

Components of Employment Relations Policy

• A good policy contains long-term goals and objectives for employment relations
• Indicates decisions on how the goals should be achieved
• Includes an implementation plan with resources, timelines, and responsibilities
• Consists of a generic policy statement along with a specific one
• Reflects a balance between conflict and common ground dynamics
• Forms a foundation for detailed procedures
• Has a summarized version that is available to all employees

Workplace Legislation

• Labour Relations Act 66 of 1995
• Basic Conditions of Employment Act 75 of 1997
• Employment Equity Act 55 of 1998
• Occupational Health and Safety Act 85 of 1993
• Skills Development Act 97 of 1998
• Protected Disclosures Act
• Compensation for Occupational Injuries and Diseases 130 of 1993
• Unemployment Insurance Act 63 of 2001

Contents of the LRP

• Principles relating to management's right to manage its business
• Recognition of employees' rights
• Guidelines of interaction between management and labour representatives
• Commitment to a climate of mutual acceptance, trust and cooperation
• Acknowledgement of principles related to pluralism or unitarism
• Sets out details for determining terms/conditions of employment through institutions and consult/bargain
• Procedures to resolve disputes quickly and in a mutually acceptable way
• Commits to eradicate discriminatory labor practices
• Commits to contribute towards the community at large

Contents of an Employment Relations Policy

• Workforce planning policy
• Affirmative action strategy
• Recruitment and selection policy
• Appointments
• Promotions
• Training and development
• Grievance handling
• Strike handling
• It must be aligned with the general business policy

Common Causes of Grievances

• Favoritism
• Inequality
• Hours of work
• Pay rates
• Poor communication
• Organizational procedures/processes

Value of Effective Grievance Handling

• Functions as a safety valve that will release tension and aggression in businesses
• Gives worker the right to raise and settle grievances without victimization
• This results in a more open and honest relationship between workers and managers
• Allows for a removal of sources of conflict.
• Encourages positive worker morale.
• Promotes goal achievement by business

Dismissal and Discipline

• Discipline refers to matters of behaviour and/or conduct of employees
• Dismissal happens because of employee misconduct, including poor work performance, ill health or injury

Substantive Fairness in Dismissal

• A valid reason for dismissal is critical
• Whether the employee contravened a workplace rule or standard that is relevant
• The rule should be reasonable
• The employee should have been aware of the rule
• The employer must have consistently applied said standard or rule

Procedural Fairness in Dismissal

• A fair procedure is critical for fair dismissal
• ER needs to conduct an investigation to determine grounds for dismissal
• Employee must be notified of allegation, rights, etc.
• Employee should state his/her case in response
• After inquiry ER should communicate decision in writing
• Union rep cannot be disciplined without consulting union.
• EE dismissed - reason for dismissal and Dispute resolution process should be

Rules of Evidence

• Must establish facts
• Evidence must be proven
• Hearsay evidence might be allowed under certain circumstances
• Chairperson will decide on the weight added to evidence presented
• Evidence of similar facts is inadmissible
• Witnesses may not offer an opinion unless expert is permitted

Types of Evidence

• Oral Testimony: Testimony on what was seen, heard, touched, tasted, or smelled
• Real Evidence: An object that can be produced for inspection, and must be supplemented by an event, documents must be original and be authentic
• Admissions and Confessions: Acknowledgement of one or two facts that have to be proved; acknowledgement of all the facts has to be proven; Only admissible if made freely and voluntarily
• Onus of Proof: Employer has onus to prove guilt; employee can respond or challenge facts; guilt on balance of probabilities (likelihood)

The Admissibility of Evidence

• The golden rule is all evidence that is relevant to the issue is admissible

Inadmissible Evidence

• A decision of another court may not be used to proof of guilt in another court; that guilt must be proven separately since it is only an opinion

Dismissal For Misconduct: Notification of Enquiry

• The nature of the transgression in terms of the disciplinary code.
• The date, time and place of the enquiry
• Includes the right to an interperter
• Includes right to be represented, right to call witnesses, right to cross examination, and the right to state one's case

Dismissal for Poor Work Performance: Substantive Fairness

• Whether or not the employee failed to meet a performance standard
• If the employee did not meet the standard, was he or she aware of it?
• Was the employee given a fair opportunity to meet the required standard?
• Is dismissal an appropriate sanction?

Dismissal for Poor Work Performance: Procedural Fairness

• The employer needs to have given the employee appropriate evaluation, instruction, training, guidance or counselling
• A Reasonable period of time for improvement needs to have been given
• An investigation needs to have been conducted to establish the employee's reasons for poor performance
• The employee must have had the right to a hearing to present their side of the story
• The employee needs to have had the right to representation from a union or other fellow employee

Probation

• The LRA distinguishes between employees on probation and those who are permanent
• Purpose: To establish weather the employee is suitable for the position in which he/she would be appointed
• Contract in itself, underperformers can be dismissed
• Regulated through Item 8 of Schedule 8 of the LRA - "Code of Good Practice: Dismissal"

“Struck By” Incidents (2022)

• Globally, about 7,500 people die every day from unsafe and unhealthy work conditions

South Africa (2022)

• 6157 workplace accidents
• 48 fatalities
• 581 permanent disabilities

Dismissal For Incapacity

• Focus is on the employee's ability to do the work they are employed to do
• Whether the employee meets the standards required by the employer

There are Two Types

• Dismissal for poor work performance Ill-health and/or injury
• Dismissal for ill health or injury can't be considered a disciplinary measure, because the employee was not at fault

Dismissal for Ill Health or Injury

• Illness or injury may make impossible to be employed
• Recognized in law as fair reason for dismissal
• Procedural requirements are set out in Item 10, Schedule 8 of the Code of Good Practice
• Incapacity may be temporary or permanent

Dismissal for Ill Health or Injury: Substantive Fairness

• Asks whether or not employee is capable of doing the job
• What is the extent to which they can do the job if not?
• Think about the circumstance/duties available to accommodate the employee, or discuss suitable alternative work

Dismissal for Ill Health or Injury: Procedural Fairness

• Incapacity may be temporary or permanent
• Employee must be able to state case, degree of fairness given
• Have right to representation
• Consideration should be given to those that are injured at work or have work-related illnesses

Dismissal Based on the Operational Requirements

• Reason lies with the employer, so it’s a “no fault” dismissal
• Employer must first explore all possible alternatives to dismissal
• Employees treated fairly if done
• It’s regulated by Section 189 of the LRA.

Substantive Fairness Related to Retrenchment

• Economic consideration, decrease in production (Grey listing, Recession)
• Enterprise terminating (COVID-19)
• Enterprise relocating(LEAR Corporation)
• Technology development(Industry 4.0)
• Takeovers and mergers(DHL - Schellecke)

Guidelines for Retrenchments

• Requirement to consult, discuss notice and information, jointly seek consensus
• Job sharing, transfers
• Selection criteria (LIFO, FIFO)
• Severance pay
• Notice of Dismissal
• Preferential rehiring
• Fixed-term contract
• Dispute resolution procedures

Automatically Unfair Dismissals Include...

• Victimization
• Protected strike or legal
• Discrimination based on protected grounds
• Transfer of contract
• PDA disclosures

Unfair Dismissals Includes...

• Dismissal for misconduct, incapacity or constrictive dismissal -- refer to CCMA/BC within 30 days
• Unfair LAbor Practice -- refer to CCMA/BC within 90 days

Case Law 1: Ntsabo v Real Security CC (2004)

• Sexual Harassment Law
• Employee had been sexually harassed by supervisor
• The company didn’t have a SH Policy
• The inaction of the employer was unfair and led to a situation that created hostile environment
• The company had failed and should implement such policy
• Found unfairly dismissed receiving R20K = medical costs

Case Law 2: Bahl v La Lucia Sands (1998)

• Smoking Dagga in Work Premises
• Dismissal was an appropriate sanction?
• Found smoking with other employee
• Conclusion = Dismissal might not call for dagga smoking sanction
• No automatically to dismiss
• Should have been given written warning - found too severe
• Conclusion = Bahl was reinstated

Case Law 3: Yeni v South African Broadcasting Corporation (1997)

• Incapacity - Poor Performance
• Employed as Manger - Appointment not confirmed - Servicer termination
• Extended for 3 months
• Found = commissioner upheld the reasonable dismissal - adequate to suitability for employee
• Given opportunity to reflect - experienced & qualified (alternative - AND)
• Found = was fair to dismiss

Case Law 4: Spoornet v v TWU obo Du Plessis (1998)

• The employee did not disclose his epilepsy and was then terminated after identified
• Du plessis employment was identified with incapacity
• Union stated not severe and infrequent epilepsy
• Found = no charged with non-disclose
• Found procedural and substantively fair - reinstated after certain conditions was met

Case Law 5: SACCAWU and Others v Wimpy Aquarium (1998)

• Unfair Retrenchment
• Six staff fired - stated operational requirements
• Company had bad financial situation
• Disagreed with staff on how used
• Had bad faith
• Found the employers did discuss issues and approach other companies
• Complied thus = fair