2023 Revised Grade 12 BSTD DBE Notes PDF

National credit Regulator/NCR The NCR is responsible for the regulation of the South African credit industry. This means that all businesses that offer good and services on credit must be registered with the NCR. Debt review/Deb...

National credit Regulator/NCR The NCR is responsible for the regulation of the South African credit industry. This means that all businesses that offer good and services on credit must be registered with the NCR. Debt review/Debt counselling This is a debt solution targeted at South African consumers who are over indebted and struggling to manage their finances. Consumer Protection Act The main aim of this Act is to promote/protect the economic interests of consumers by providing them information so that they make informed choices. Compliance Acting according to a set of rules Penalties Punishment for doing something that is against a law. Discriminatory actions Treating a person/people differently, from the way in which you treat other people. THE SKILLS DEVELOPMENT ACT Purpose of the Skills Development Act Develops the skills of people in South Africa in order to improve productivity Invests in education and training of workers Improves the chances of getting a job for previously disadvantaged people Encourages workers to participate in learning programmes. Redresses imbalances of the past through education and training Encourages businesses to improve the skills of their workers Impact of the SDA on businesses Positives/Advantages Trains employees to improve productivity in the workplace. Promotes self-employment and black entrepreneurship Increases the return on investment in education and training Workplace discrimination can be addressed through training. Workplace is used as an active learning environment where employees can gain practical job experience Business could become globally more competitive. Increases the number of skilled employees in areas where these skills are scarce. Encourages on-going skills development and learning to sustain the improvement of skills development. Improves employment opportunities and labour movement of workers from previously disadvantaged groups BBBEE-compliant businesses can improve their products/service delivery as they employ more skilled workers. AND/OR Negative/Disadvantages Increases cost as the process requires a large amount of paperwork. Implementation of the SDA can be difficult to monitor and control. Page | 5  Skills programmes may not always address training needs of employees. Skills Development Levy could be an extra burden to financially struggling businesses. It may be monitored and controlled by government departments that do not have education and training as their key priorities. The SETAs may not be well organised, and many courses offered by companies may not have unit standards that relate to the course content. Many service providers that offer training services are not SAQA accredited. Many businesses may not support this government initiative. Employees are expected to attend learnerships during work hours which could affect the production process/productivity. Costly for businesses to employ a person to implement, manage and control learnerships. The time and money spent on improving employee skills is wasted if they leave the business. Only companies with a staff payroll over R500 000 per annum√ can claim the Skills Development levy. Actions regarded as non-compliance by the SDA Preventing employees from signing for a learnership due to their age or position in the workplace. Unfair promotion of skills and development/training to certain employees. Providing employment services for gain without being registered as an employer. Furnishing false information in any prescribed document. Penalties for non-compliance Businesses that do not pay the Skills Development Levy may not offer learnerships/claim grants from the SDA. A labour inspector could order the business to stop operating should the business be found guilty of illegal practices. Ways in which businesses can comply with the SDA Employers who collect PAYE should register with SETAs. One per cent of an employer's payroll has to be paid over to the SETA. Businesses should register with SARS in the area in which their business is classified (in terms of the SETA). Employers should submit a workplace skills plan and provide evidence that it was implemented. Businesses with more than 50 employees must appoint a skills development facilitator. Assess the skills of employees to determine areas in which skills development are needed. Encourage employees to participate in learnerships and other training programmes. Provide all employees with the opportunity to improve their skills. Role/functions of SETAs Report to the Director General. Promote and establishes learnerships. Collect levies and pays out grants as required. Provide accreditation for skills development facilitators. Register learnership agreements/learning programmes. Approve workplace skills plans and annual training reports. Monitor/Evaluate the actual training by service providers. Allocate grants to employers, education and training providers. Oversee training in different sectors of the South African economy. Page | 6  Develop skills plans in line with the National Skills Development Strategy Draw up skills development plans for their specific economic sectors. Provide training material/programmes for skills development facilitators. Pay out grants to companies that are complying with the requirements of the Skills Development Act. Promote learnerships and learning programmes by identifying suitable workplaces for practical work experience. Funding of SETAs Skills Development levies are paid by employers to SARS as a collecting agency for the government. Employers who have a salary bill that exceeds R500 000 per annum, should pay one percent (1%) of their annual salaries as a levy. The different SETAs receive 80% of the levy for organisational expenses and the remaining 20% is paid to the National Skills Fund. Donations/Grants received from the public/businesses/CSI programmes. Surplus funds from government institutions. Funds received from rendering their services Meaning of learnership Theoretical / practical training opportunities that can lead to a recognised qualification Structured learning programme completed during work hours for a specified period of time Agreement between a learner / trainee, employer and training provider May include employment for a specified period after learnership is completed Includes a training course with learning material as well as practical work experience. Meaning of National Skills Development Strategy (NSDS) Increase access to programme that train people. Promote the public FET college system that has programme to meet the skills needed by SETA’s /local/regional/national organisations. Address the low level of language and mathematical skills among the youth and adults. Make better use of workplace-based skills development. Encourage/ support small business/community-training groups/ NGO’s/worker-initiated training initiatives. Guides work of SETA’s /use of the National Skills Fund. Sets out the responsibilities of other education and training stakeholders. Provides for the participation of government/ organised business/ organised labour. Improves social development through economic development. Meaning of Human Resource Development Strategy (HRDS) Addresses skills shortages in South African workforce. Aims at achieving faster economic growth/higher employment levels and reduced levels of poverty. Promotes social development/ social justice and helps alleviate poverty. Page | 7  Develops short-term and long-term workforce skills. Improves supply of skills. Increases employee participation in lifelong learning. LABOUR RELATIONS ACT/LRA Purpose of the Labour Relations Promotes collective bargaining at the workplace. Establishes Labour Courts and Labour Appeal Courts. Promotes fair labour practice between the employers and employees. Promotes workplace forums to accommodate employees in decision making. Provides for the right to lock-out by the employer as a reaction to lengthy strikes. Promotes simple procedures for the registration of trade unions and employer organisations Establishes the Commission for Conciliation, Mediation and Arbitration (CCMA) for dispute resolutions. Provides a framework/structure for labour relations between employers and employees. Clarifies the transfer of employment contracts between the existing and new employers. Advances economic development/social justice/labour peace to ensure that the workplace maintains the basic rights of employees. Impact of the LRA on business Positives/Advantages Promotes a healthy relationship between the employer and employees Protects the rights of businesses in labour related issues. Labour disputes are settled quicker and are less expensive. Workplace forums can add value to businesses if it functions properly. Protect employers who embark on lawful lock-outs when negotiations between parties fail. LRA provides for the principles of collective bargaining and puts structures in place with which disputes in the workplace can be settled. Provides specific guidelines for employers on correct and fair disciplinary procedures. Employers and employees have guidelines regarding correct and fair dismissal procedures. Provides mechanisms such as statutory councils/collective bargaining/ CCMA. Employers are entitled to compensation from the Labour Court if they suffered damages as a result of unprotected strikes. AND/OR Negatives/Disadvantages Reduced global competitiveness due to lower productivity Productivity may decrease if employees are allowed to participate in the activities of trade unions during work time. Costs of labour increases because of legal strikes. Employers may not get a court interdict to stop a strike. Employers may have to disclose information about workplace issues to union representatives that could be the core of their competitive advantage. Employers may not dismiss employees at will, as procedures have to be followed. Many employees take advantage of the right to strike without acknowledging their responsibilities. Many employees and employers do not understand/respect the Labour Relations Act. Strike actions always result in loss of production for which employers may not claim. Some trade unions may not promote the mandate of their members but embark on industrial action, which is harmful to labour relations between employers and employees. Page | 8  Some businesses may feel that the LRA gives employees too much power as it creates lengthy procedures, e.g. consulting with workplace forums. Labour disputes and bargaining council processes become disruptive/ time consuming and can lead to a decrease in productivity in businesses. Actions regarded as non-compliance by the LRA Unfair/Illegal dismissal of employees. Preventing employees from joining trade unions. Refusing the establishment of workplace forums. Forcing employees to give up trade union membership. Not allowing employees to take part in legal strikes (Employees’ rights)/ not adhering to the right of employees to strike when legalised Cancellation of employees' contracts by a new employer when a business is sold Refusing to give workplace forum members paid time off for attending meetings during working hours. Refusing leave to trade union representatives to attend trade union activities. Breaching of collective agreements/resolution mechanisms by either employer/employee. Penalties for non-compliance with the LRA The employer may be forced to enter into a dispute resolution process. Businesses will be fined if they fail to comply with the agreements reached during the dispute resolution process. Businesses that fail to comply with this Act may risk financial costs e.g. legal/CCMA fees and fines. Ways in which businesses can comply with the LRA Employees should not be unfairly/illegally dismissed Allow/Support the establishment of workplace forums. Employers should not breach/ignore any collective agreement Businesses must allow employees to form trade unions/participate in union activities/legal strikes. Disclose all relevant information required by trade union representatives to do their jobs effectively. EMPLOYMENT EQUITY ACT /EEA Purpose of the EEA The EEA allows employees who do the same work to be paid equally. Eliminates discrimination on grounds of gender/race/disability in the workplace. Promotes equal opportunity and fair treatment in the workplace. Promotes diversity in the workplace by ensuring that people of diverse backgrounds are appointed. Protects employees from victimisation if they exercise the rights given to them by the EEA. Ensures equal representation in the workplace through the implementation of affirmative action. Page | 9 The rights of employers and employees according to LRA Rights of employers Form employer organisations. Form a bargaining council for collective bargaining purposes. Employers have the right to lockout employees who engage in unprotected/illegal strike/labour action. Dismiss employees who are engaged in an unprotected strike/misconduct such as intimidation/violence during a strike action. Right not to pay an employee who has taken part in a protected strike for services/work they did not do during the strike. Rights of employees Employees may join a trade union of their choice. Embark on legal strikes as a remedy for grievances. Refer unresolved workplace disputes to the CCMA. Refer unresolved CCMA disputes to the Labour Court on appeal. Request trade union representatives to assist/represent employees in the grievance/disciplinary hearing. Trade union representatives may take reasonable time off work with pay, to attend to trade union duties. Establish a workplace forum where a business has 100 or more employees to resolve work related issues Impact of the EEA on business Positives/Advantages Encourages consultation between employer and employees. Promotes equal opportunity and fair treatment in the workplace. Impacts positively on BEE ratings for businesses. Appointment process is clearly defined, so all parties are well informed. Motivates employees because the workforce is more diverse/representative/inclusive Motivates employees because everyone has the same employment opportunities. Promotes the implementation of affirmative action measures to redress the imbalances in employment. Provides employees with legal recourse if they believe they have been unfairly discriminated against. Provides all employees with an equal opportunity to be selected/appointed/ promoted in a position. Prevents unfair discrimination as it ensures that the workforce represents the demographics of the country. Creates a framework of acceptable employment practices/affirmative action measures. Encourages diversity in business by employing people from various racial backgrounds. Businesses are in a better position to negotiate contracts with the government/Impacts positively of BEE ratings of businesses Certified psychometric tests may be used to assess applicants/employees to ensure that suitable. Page | 10  AND/OR Negatives/Disadvantages Expensive to train/employ someone who knows little about the Act. Fines/Penalties for non-compliant businesses may be expensive for the business. Diversity in the workplace may lead to conflict/unhappiness. Often positions go unfilled because there are no suitable EE candidates. Skilled people from designated groups may demand higher salaries which increase salary expenses. Job hopping of skilled/trained EE appointees may increase staff turnover. Increased administration burden, as businesses must compile/submit employment equity reports every two years. Employers have to appoint one or more senior managers to ensure the implementation of the plan, which increases salary expenditure Businesses must submit a compliance certificate before they can conduct business with state businesses Businesses are sometimes pressurised to appoint an unsuitable EE person to meet EE requirements. Other groups may not respect the knowledge/skills/experience of an EEA appointment and it may lead to conflict. Penalties for non-compliance with the EEA Businesses may face heavy fines for non-compliance. They can be ordered to pay compensation and damages to the employee. Labour inspectors may investigate/inspect/ask questions about complaints. Labour inspectors may conduct onsite visits, to interview employees which can create a bad image for the business. A compliance order may be issued to businesses that do not comply with the EEA. Businesses may be taken for a ruling in the Labour Court if compliance orders are not adhered to/no efforts made to reach targets. The Department of Labour may block non-compliant companies from doing business with the government. Businesses may be ordered to pay compensation and damages to the employees. The Labour inspector could order businesses to stop operating should the business be found guilty of illegal practices. Actions regarded as non-compliance by the EEA Not employing a young woman because she would want to have children in future. Refusing to employ a person because he/she has strong religious beliefs/has a disability Doing HIV testing unless justified by the Labour Court. Denying people access to the workforce based on gender/race/culture/etc. and treating them unfairly. Ways in which businesses can comply with the EEA Businesses must guard against discriminatory appointments. Promote equal opportunities and fair treatment Implement an employment equity plan. Page | 11  Implement affirmative action measures to redress disadvantages experienced by designated groups. Reasonable accommodation of people from designated groups Ensure that there is equal representation of all racial groups in every level of employment. Compile employment equity plans that indicate how they will implement affirmative action. Ensure that affirmative action measures promote diversity in the workplace. Prepare an employment equity plan in consultation with employees. Ensure that diversity/inclusivity in the workplace is achieved. Submit the employment equity plan to the Department of Labour Retain designated groups, including skills development of such groups. Assess the racial composition of all employees, including senior management. Clearly define the appointment process, so that all parties are well informed. Assign one or more senior managers to ensure implementation and monitoring of the employment equity plan. Eliminate barriers that have an adverse impact on designated groups. Retain/Develop/Train designated groups, including skills development. Regularly report to the Department of Labour on progress in implementing the plan. Display a summary of the Act where employees can clearly see/have access to the document. Restructure/Analyse current employment policies/practices/procedures to accommodate designated groups. Employees must be paid equal for work of equal value. Conduct medical/psychological tests fairly to employees/when deemed necessary/ Use certified psychometric tests to assess applicants/employees to ensure that suitable candidates are appointed BASIC CONDITIONS OF EMPLOYMENT ACT/BCEA Purpose of the BCEA Provides clear terms and conditions of employment for employers and employees. Set minimum requirements/standards for the employment contract. Advance economic development and social justice Regulates the right to fair labour practices as set out in the Constitution. Regulates the variations of basic conditions of employment. Adheres to the rules and regulations set out by the International Labour Organisation Impact of the BCEA Positives/Advantages Creates a framework of acceptable employment practices e.g., work hours, leave, etc. Promotes fair treatment of employees in business. Encourages consultation between employers and employees. Outlines minimum requirements that form the basis of employment contracts. Work hours are specified so that the employer cannot exploit employees. The rules and regulations are very specific, which clearly guides the employer on how to deal with employment issues. Employees are permitted to consult labour unions in cases where the BCEA conditions are violated. (Relationship with LRA) Employees may submit complaints to labour inspectors who can address it. Page | 12  AND/OR Negative/Disadvantages Developing/Drafting a formal/legal employment contract may be time-consuming/costly. Businesses may regard employment contracts negative and may not implement it, which result in non-compliance/penalties. No employer may force an employee to work more than 45 hours in a week. This may result in reduced productivity. Hiring cheap labour is no longer possible, so businesses cannot exploit workers. BCEA forces businesses to comply with many legal requirements, which may increase labour costs. Businesses not complying with the Act, may be charged with high penalties, which may affect their cash flow negatively. Businesses may consider the provisions of the BCEA as unimportant and an unnecessary administrative burden that increase operating costs. Actions regarded as non-compliance by the BCEA Forbidding workers to discuss wages/salaries with co-workers. Preventing workers from having access to employment contracts. Refusing to accept a valid medical certificate of a sick worker. Refusing to grant some workers family responsibility leave to support a sick family member. Penalties businesses may face for not complying with the BCEA Labour inspectors may serve a compliance order by writing to the Department of Labour. Labour inspectors may investigate/inspect/ask questions about complaints and remove records as evidence. Businesses may be taken to the labour court for a ruling. Businesses that are found guilty of non-compliance may face heavy fines/ penalties. They can be ordered to pay compensation and damages to the employee. The Director General may agree/change/cancel the compliance order. Ways in which businesses can comply with the BCEA Workers should only work 9 hours per day in a 5 day work week./8 hours per day in a 6 day work week./Overtime should not exceed 10 hours per week. Workers can take up to six weeks paid sick leave during a 36-month cycle. Workers must receive double if they work during public holidays/Sunday. They must have a break of 60 minutes after five hours of work Businesses should not employ children under the age of 16. Provisions of the BCEA Regulation of working time: Ordinary hours of work/ Overtime/Meal Intervals/Sunday work/Public holidays Workers may not work for more than 45 hours in any week. Workers may work nine hours a day if they work five days or less per week/eight hours a day if they work more than five days a week. Night work performed after 18:00 and before 6:00 the next day by agreement, must be compensated by allowance/reduction of work hours. Page | 13  Ordinary work hours may be extended by agreement by a maximum of 15 minutes per day/maximum of sixty minutes per week to complete duties when serving the public. Ordinary work hours may be reduced to a maximum of 40 hours per week/8 hours per day. Overtime Workers must agree to work overtime. Workers cannot work more than three hours overtime per day/10 hours per week. Overtime must be compensated as follows: One and half times the normal rate of pay for overtime worked on week days and Saturdays. Double the normal rate of pay for overtime worked on Sundays and public holidays. Overtime must be paid either at specified rate for overtime or an employee may agree to receive paid time off. Minister of Labour may prescribe the maximum permitted working hours, including overtime, for health and safety reasons for a certain category of work. Leave: This includes all types of leave Types of leave Annual leave Workers are entitled to 21 consecutive days annual leave per year or one day for every 17 days worked, one hour for every 17 hours worked. An employer can only pay a worker in lieu/instead of granting leave if that worker leaves the job/ terminates the employment contract. Annual leave must be granted within six (6) months after the leave cycle ended. Sick leave Employees are entitled to thirty (30) days/six (6) weeks paid sick leave in a three (3) year/thirty- six (36) months cycle. One (1) day paid sick leave for every twenty-six (26) days worked during the first six (6) months of employment. A medical certificate may be required before paying an employee who is absent for more than two (2) consecutive days/who is frequently absent. Thereafter, they may take all thirty (30) days sick leave, provided they meet the legal requirements. Maternity leave/Adoptive leave A pregnant employee is entitled to four consecutive months' leave. A pregnant employee may not be allowed to perform work that is hazardous to her unborn child. The starting date is usually any time from four weeks before the expected date of birth or on advice of a doctor/midwife. Family responsibility/Paternity leave Three to five (3 to 5) days paid leave per year on request in the event of the death of the employee's spouse/life partner/parent/ adoptive parent/ grandparent/child/adoptive child/grandchild/sibling. An employer may require reasonable proof, before granting this leave. Male employees are entitled to a maximum of three/five day’s paternity leave when his child is born. Meal breaks and rest periods Page | 14  Workers must have a meal break of 60 minute after five continuous hours of work. This can be reduced to 30 minutes by written agreement, when working less than 6 hours per day. A worker must have a daily rest period of 12 continuous hours/a weekly rest period of 36 continuous hours which must include Sundays. Public holidays Workers must be paid for any public holidays that fall on a working day. Work on public holidays is by agreement and paid at double the rate Parental leave An employee who is a parent is entitled to ten (10) consecutive day's parental leave after the birth of his/her child irrespective of gender. Parental leave is unpaid, but the employee/parent may claim from the Unemployment Insurance Fund/UIF. The employer must be informed/notified at least one month before the excepted due date of birth. Adoption leave is applicable to the adoption of a child below the age of two (2) years. One parent of the adopted child is entitled to ten (10) weeks adoption leave to take of the child, while the other parent is entitled to ten (10) consecutive day's normal parental leave. \ Commissioning parental leave is only applicable to surrogate motherhood where one parent is entitled to ten (10) weeks commissioning parental leave to take of the child, while the other parent is entitled to ten (10) consecutive day's normal parental leave. Particulars of employment and remuneration Employees must be paid on regular basis. Remuneration must be in line with number of working hours including overtime. Termination of employment A contract of employment may only be terminated following one week’s notice, if the worker has been employed for six months or less. A minimum of four weeks’ notice must be given, if the worker has been employed for a year or longer. The employee must be given notice in writing. An employee who is retrenched/ dismissed for restructuring reasons is entitled to one week’s severance pay for every year of service. Prohibition of employment of children and forced labour It is illegal to employ a child younger than 15 years of age. It is also illegal to force someone to work. Businesses may employ children over the age of 15 years, if employment is not harmful to their health/well-being/education/moral and social development/ minors under 18 years of age may not do dangerous work/work meant for an adult. COMPENSATION FOR OCCUPATIONAL INJURIES & DISEASES ACT/COIDA Purpose of COIDA Provides a comprehensive protection to employees who injured in the course of performing their duties. COIDA applies to all casual and full-time workers who become ill/injured/ disabled/killed due to a workplace accident/disease. Page | 15  It excludes workers who are guilty of wilful misconduct/workers working outside South Africa for at least twelve months/members of the SA Defence Force/Police services. It provides for the establishment of a Compensation Board whose function is to advise the Minister of Labour on the application/provisions of COIDA. Impact of the COIDA on businesses Positives/Advantages Promotes safety in the workplace. Employees do not contribute towards this fund. Claiming processes are relatively simple. Eliminates time and costs spent on lengthy civil court proceedings. Any compensation to an employee/the family is exempt from income tax. Employers are protected from financial burden should an accident occur in the workplace provided that the employer was not negligent. Makes businesses more socially responsible as they cannot just employ workers at random in dangerous working conditions. Workers are treated with dignity and respect as businesses view them as valuable assets and not just as workers. Covers all employees at the workplace if both parties meet all the necessary safety provisions in the Act. Creates a framework for acceptable employment practices and safety regulations. Supply administrative guidelines/mechanisms for dealing with/processing claims. Employees are compensated financially for any injury/disability resulting from performing their duties at their workplace. In the event of the death of an employee as a result of a work-related accident/ disease, his/her dependent(s) will receive financial support. Employees receive medical assistance provided there is no other medical assistance option./Cannot claim medical assistance from the fund and medical aid. Medical expenses/Other types of compensation are paid to employees and/or their families depending on the type/severity of the injuries. Employers have to pay a monthly amount to the Compensation Fund depending on the number of employees/the level of risk they are exposed to. AND/OR Page | 16 Negative/Disadvantages Claiming processes can be time consuming. Domestic/Military workers are not covered. Workers who are temporarily/permanently employed in foreign countries are not covered. Employers may be forced to pay heavy penalties if they are found guilty of negligence/not enforcing safety measures. Implementation processes/procedures required by the Act may be expensive. Procedures required by this Act may be costly as paperwork places an extra administrative burden on businesses. Employers have to register all their workers/make annual contributions to COIDA, which may result in cash flow problems. Actions regarded as non-compliance by the COIDA Employers who bribe/prevent employees from reporting the accident/injury. Providing false information about previous, serious accidents/occupational diseases. Employers who do not contribute to the Compensation fund. Employers who do not allow claims for injuries, discriminates against injured employees. Employers that take too long to process claims/delay the claiming process. Compensation that is set off against any debt of the person entitled to the compensation. Penalties for non-compliance with COIDA Businesses can be fined for refusing to lodge the claim/contravening the Act. Businesses can be forced to make large payments if it did not take the necessary precautions according to the Act. They may be forced to pay any recovery costs required by the Compensation Fund. Employees may take businesses to court for not registering them with the Commissioner of the Compensation Fund. If businesses are found guilty of any misconduct, they will have to pay large penalties/face imprisonment. Ways in which businesses can comply with the COIDA Businesses should provide a healthy/safe working environment Ensure that the premises/equipment/machinery is in good working condition. Register with the Compensation Commissioner and provide the particulars of the business. Report all incidents causing death/injury/illness of employees. Levies must be paid to the Compensation Fund. Keep records of employees' income and details of work for four years. Submit returns of earnings by no later than 1 March annually. Allow regular assessment of the workplace by inspectors in order to determine the level of risk their employees are exposed to. Employers may not make deductions for COIDA from employees' remuneration packages. Businesses must ensure that claims are lodged within twelve months of the date of the accident. Page | 17 BROAD BASED BLACK ECONOMIC EMPLOYMENT ACT/BBBEE Purpose of BBBEE Enable wealth to be spread more broadly across all population groups. Outline areas that would give the government a platform for bringing equitable spread of wealth. Allows for the development of Codes of Good Practice. It aims at targeting inequality in the South African economy. NOTE: You must first know the implications of BBBEE pillars so that you can understand the impact BBBEE on businesses. BBBEE PILLARS Management control Skills development Ownership Enterprise and supplier development (ESD) Socio-economic development/social responsibility Implications of the revised BBBEE pillars on businesses Management control Implication of management control on businesses Business must ensure that transformation is implemented at all levels. Appoint black people in senior executive positions/to management. Involve black people in the decision-making processes. Ensure that black females are represented in management. Businesses score points in both management and ownership when selling more than 25 % of their shares to black investors so that some of them can become directors. Due to a shortage of skilled black managers/directors, some businesses find it difficult to make appointments. Businesses are directly penalised for not implementing this pillar. NOTE: The word “implication” in this context means “what businesses should do in order to comply with this Act and what are the things that are preventing them from implementing this Act. NOTE that the last sentences of EACH pillar speak to things that prevent businesses from implementing the pillar. Ways in which businesses could apply management control in the workplace Business must ensure that transformation is implemented at all levels. Appoint black people in senior executive positions/to management. Involve black people in the decision-making processes. Ensure that black females are represented in management. Businesses score points in both management and ownership when selling more than 25 % of their shares to black investors so that some of them can become directors. Page | 18 Skills development Implication of skills development on businesses Business must engage black employees in skills development initiatives. Provide learnerships and learning programmes to black employees. Business must contribute 1% of their payroll to fund the skills development programmes. Business benefits from the increased pool of skilled/trained workers. Business must go the extra mile to train staff where learnerships are not offered. Productivity is compromised as mentors/coaches have to find the time to participate in learnerships/training. Ways in which businesses could apply skills development in the workplace Business must engage black employees in skills development initiatives. Provide learnerships and learning programmes to black employees. Business must contribute 1% of their payroll to fund the skills development programmes. Business benefits from the increased pool of skilled/trained workers Ownership Implication of ownership on businesses Business should include black people in shareholding/partnerships/franchises. Encourage small black investors to invest in big companies and share ownership. Exempted Micro Enterprises (EMEs) with an ownership of 50% or more of black people are promoted to level 3 of the BEE scorecard. More opportunities are created for black people to become owners/ entrepreneurs. Large businesses should form joint ventures with small black owned businesses and share business risks. Businesses sometimes find it difficult to locate suitable black business partners/ shareholders. Many black people cannot afford shares in companies/contributions to partnerships. Ways in which businesses could apply ownership in the workplace Business should include black people in shareholding/partnerships/franchises. Encourage small black investors to invest in big companies and share ownership. Exempted Micro Enterprises (EMEs) with an ownership of 50% or more of black people are promoted to level 3 of the BEE scorecard. More opportunities are created for black people to become owners/ entrepreneurs. Large businesses should form joint ventures with small black owned businesses and share business risks Enterprise and supplier development (ESD) Implication of Enterprise and supplier development (ESD) on businesses Business must create jobs as ESD promotes local manufacturing. Identify black owned suppliers that are able to supply goods and services. Outsource services to suppliers that are BBBEE compliant. Businesses are encouraged to invest/support black owned SMMEs. Develop the business skills of small/black owned suppliers, e.g. sales techniques, legal advice, etc. Support the cash flow of small suppliers by offering them preferential terms of payment. Businesses should invest in/support black owned SMMEs. Page | 19  Invest in/Support black owned SMMEs by contributing loans/donations/consulting services/advice/entrepreneurial programmes. SMMEs will be encouraged to use their own business initiatives to make them sustainable. Develop and implement a supplier development plan/supply chain. Small/Large businesses may not be able to afford enterprise development investment/support. Black owned SMMEs may become too reliant on support from other businesses/unable to take their own initiatives. BBBEE suppliers may be without good workmanship. Smaller businesses that are not BBBEE compliant lose business. Businesses are forced to choose from a smaller pool of suppliers. Ways in which businesses could apply ESD in the workplace Business must create jobs as ESD promotes local manufacturing. Identify black owned suppliers that are able to supply goods and services. Outsource services to suppliers that are BBBEE compliant. Businesses are encouraged to invest/support black owned SMMEs. Develop the business skills of small/black owned suppliers, e.g. sales techniques, legal advice, etc. Support the cash flow of small suppliers by offering them preferential terms of payment. Businesses should invest in/support black owned SMMEs SMMEs will be encouraged to use their own business initiatives to make them sustainable. Develop and implement a supplier development plan/supply chain. Invest in/Support black owned SMMEs by contributing loans/donations/consulting services/advice/entrepreneurial programmes. Social responsibility/Socio-economic development Implications of social responsibility/socio-economic development on businesses Businesses should focus 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. Impact of the BBBEE on businesses Positives/Advantages Encourages businesses to address the demands for redress/equity directly. Provides a variety of business codes to improve employment equity. Provides for human resources development through training and development. A good BEE rating improves the image of the business. Fronting is discouraged, as it may lead to the disqualification of a business's entire scorecard/BBBEE status. Promotes enterprise development, by developing entrepreneurial skills of designated people to start their own businesses Businesses that comply with BBBEE regarding the pillars will be rated high on the BEE scorecard/may get government tenders/may attract other BBBEE business partners/- suppliers. Businesses will have a good overview on how it is performing in comparison to other businesses in the rest of the country. Page | 20  By focusing on BBBEE, the business will show commitment towards the social/education/economic developments in the community/country. Once rated, the business will understand how to develop BBBEE strategies that will increase its BBBEE ratings on an annual basis. Share prices of BBBEE compliant businesses are likely to increase as they attract more business. Businesses that support Small, Micro, Medium Enterprises (SMMEs), may increase their own BBBEE ratings Complying with BBBEE requirements gives businesses experience/exposure to be able to provide better employment opportunities/staff development. AND/OR Negative/Disadvantages Businesses could experience large financial implications/penalties if they do not comply with BBBEE. Processes may lead to corruption/nepotism if not monitored properly. Processes and procedures may be costly for a business as there are many legal requirements for scoring enough points to be compliant. Investment/Ownership issues can cause unhappiness amongst existing share- holders/owners. Provides for preferential procurement, so certain businesses may be excluded from supplying goods/services. Businesses will have to spend money in areas covered by five BBBEE pillars to obtain a good BBBEE rating. Businesses that want to do business with the government must have their BEE status assessed annually. Businesses have to go through the process of having their BBBEE compliance measured/verified by an independent BEE verification agency. Many businesses have been disadvantaged due to BBBEE ratings as they may not be able to meet all the scoring. Actions regarded as non-compliance by the BBBEE Failing to implement affirmative action to meet BBBEE responsibilities. Promoting unsuitable people into a management position at the expense of qualified PDP’s. Refusing to award tenders to black suppliers who are BEE compliant. Penalties for non-compliance with the BBBEE Businesses may face imprisonment for non-compliance and fronting practices. The penalty could be a fine of up to 10% of the company’s annual turnover. Government will cancel any contract awarded that was based on false information regarding B-BBEE status. A business can be banned from participating in government contracts for a period of 10 years. Business licenses may not be renewed, and authorisations may not be issued Businesses that fail to achieve at least a minimum 40% of compliance with ownership, skills development and new enterprise and supplier development will be automatically downgraded the by one level. Page | 21 Ways in which businesses can comply with the BBBEE Businesses must appoint black people in managerial positions Businesses must sell shares to black employees/people. Send black people for black for skill development training. Outsource their services to BEE compliant suppliers. Implement affirmative action when making appointments. Develop small business /SMME’s through ESD. Improve the standard of living of the communities in which they operate. NATIONAL CREDIT ACT Purpose of the NCA Promote a fair but competitive credit market. Makes provision for the establishment of the National Credit Regulator/NCR Promotes the social and financial interest of consumers. Ensure that consumers know what is included in their credit contracts. Ensure registrations of credit bureau and debt counselling services. Prevent discrimination and ensure credit is available to all consumers. Impact of the NCA on businesses Positives/Advantages Lower bad debts resulting in better cash flow. Protects businesses against non-paying consumers. Authorised credit providers may attract more customers. Leads to more customers through credit sales as they are now protected from abuse. Prevents reckless lending and prevents businesses from bankruptcy. Increases cash sales as credit can only be granted to qualifying customer. The whole credit process is transparent e.g. both businesses and customers know their responsibilities. Businesses do thorough credit checks and receive up-to-date documentation from the consumer as proof that they can afford the repayment. Credit bureau information is made available to businesses so that they can check the credit worthiness of consumers before granting credit. AND/OR Negative/Disadvantages Businesses can no longer carry out credit marketing. Businesses struggle to get credit such as bank loans/overdrafts Businesses that do not comply with the NCA may face legal action. Debt collection procedures are more complex and expensive. Fewer customers buy on credit as it is more difficult to obtain credit. Increases the administration burden on credit providers/The paperwork and administrative process required by the act are costly and time consuming. Leads to loss of sales as many consumers may no longer qualify to buy on credit. The business needs to appoint additional staff to deal with the extra administration. Should the credit agreement be declared reckless the business can forfeit the outstanding debt and the goods. Businesses that are official credit providers, must submit a compliance report every year. Page | 22  A business must make sure that all attempts have been made to recover the debt before blacklisting the customer. Credit providers cannot collect from consumers who are under debt reviews. More working capital is needed as businesses cannot sell many goods on credit due to stricter credit application processes. Actions regarded as non-compliance by the NCA Refusing credit to customers based on gender/race. Charging different interest rates to customers based on gender/race Blacklisting customers without making efforts to recover the debt Penalties/consequences for non-compliance with the NCA The business may not demand payment, sue or attach the clients/consumers salaries/assets. The business may not charge any fee/interest/other charges under that specific credit agreement. The court may declare the granting of credit by the business reckless and may order consumers not to repay the credit/or part thereof to the business The National Credit Regulator may impose a fine/penalty on the business for non- compliance. The business will bear all costs of removing the negative information of clients/ consumers who were blacklisted as a result of reckless lending. Ways in which businesses can comply with the NCA Offer applicants pre-agreement statements. Disclose all costs of loan/No hidden costs should be charged/added Obtain credit records/checks of clients before granting loans. Businesses should be registered with the National Credit Regulator. Submit an annual compliance report to the National Credit Regulator. Conduct affordability assessment to ensure the consumer has the ability to meet his/her obligation. Conduct credit check with a registered credit bureau and consult with National Credit Register. Businesses must have procedures in place to comply with the provision of the Financial Intelligence Centre Act (FICA). Credit providers must have procedures in place to comply with the provision of the Financial Intelligence Centre Act (FICA). Verify the identity of clients, report suspicious transactions/train staff on their obligations in terms of FICA. Consumer rights in term of the NCA Consumers have a right to: Apply for credit and to be free from discrimination. Receive Information in plain and understandable language. Receive documents as required by the Act. Receive pre-agreement documentation before concluding any credit transaction Obtain reasons for credit being refused. Fair and responsible marketing. Access and challenge credit records and information. Choose which goods they will buy and return such goods if they are not satisfied. Page | 23  Surrender/Return goods to the credit provider in order to settle the outstanding amount/debt. Apply for debt review/counselling if the consumers cannot afford to repay their debts. Receive protection of their personal information. Receive protection from being held accountable for the use of their credit facility after they reported the loss/theft. Refuse a credit limit increase. CONSUMER PROTECTION ACT Purpose of the Consumer Protection Act Promotes responsible consumer behaviour. Establishes national standards to protect consumers. Establishes a National Consumer Commission (NCC) Establishes national standards to protect consumers. Promotes and protects the economic interests of consumers by providing access to information. Promotes fair/accessible and sustainable places for people to sell their products. Promotes consistent laws relating to consumer transaction and agreement. Promotes the rights and full participation of historically disadvantaged individuals as consumers. Promotes consumer safety by protecting them from hazardous products/services. Provides guidelines for better consumer information and to prohibit unfair business practices. Ensures that consumers have access to information they need to make informed choices Ensures that consumers are not misled/deceived by suppliers of goods/services Empowers consumers to take legal action if their rights are not upheld. Strengthens a culture of consumer rights and responsibilities. Protects consumers against contracts that include unfair terms which limit the liability of suppliers. Protects consumers against dishonest businesses such as fly-by-night franchisors Allows for consumers and businesses to resolve disputes fairly/effectively. Impact of the CPA on businesses Positives/Advantages Businesses may be safeguarded from dishonest competitors. Businesses may be protected if they are regarded as consumers. Prevents larger businesses from undermining smaller ones. May gain consumer loyalty, if they comply with CPA. Enables businesses to resolve disputes fairly through the National Consumer Commission/Consumer Court/Industrial ombudsmen Businesses may build a good image if they ensure that they do not violate consumer rights. AND/OR Negatives/Disadvantages Confidential business information may become available to competitors. Penalties for non-compliance may be very high. Businesses may feel unnecessarily burdened by legal processes. They have to disclose more information about their products and processes/services Staff need to be trained /Legal experts need to be consulted, which can increase costs Page | 24  Many business documents need to be simplified /revamped at extra cost as consumers have a right to receive contracts in simple/understandable language. Administration costs increase as legal contracts need to be worded in plain language /pitched at the level of the consumer Businesses may need insurance against claims from consumers /provisions in the Act increase risks for unforeseen claims and lawsuits. Businesses have to replace/repair faulty items/refund money if the fault occurs within six months after purchase. Supply chain management in stock levels will have to change, as defective goods have to be replaced within six months at the request of the consumer. Information technology systems need to be improved as the retailer must keep more detailed records of interactions with consumers /be able to report to the National Consumer Commission. Consumers can take advantage of a business and return goods when it is not necessary to do so. Processes and procedures required by CPA can be expensive and time consuming. Actions regarded as non-compliance by the CPA Denying customers proper information about the product/services. Treating customers differently based on gender/age/race. Charging unfair prices for the same goods and services. Varying the quality of goods when selling in different areas. Prioritising any consumer group over another when marketing/selling Penalties for non-compliance with the NCA A contract may be rendered void or a fine or term of direct imprisonment may be imposed. Businesses may face fines or imprisonment for a period not exceeding 10 years. Government agencies may conduct audits, enact fines or even dissolve your business entirely. Businesses will be forced to compensate consumers in line with the extent to which their rights have been violated. Ways in which businesses can comply with the CPA Disclose prices of all products on sale. Provide adequate training to staff on the CPA. All agreements must provide for a five-day cooling off period. Ensure that goods/services offered are standardised/of the same quality. Comply with the requirements regarding promotional competitions. Comply with requirements regarding the display of information on labels/ packaging. Display the name of the business on all business documents, e.g. invoices/contracts. Bundling of goods/services should benefit consumers, e.g. offering a cell phone and a tablet at a special price. Implement measures that will facilitate complaints, e.g. suggestion boxes. Consumer rights of the Consumer Protection Act Right to choose Consumers have the right to: choose suppliers and/or goods. Page | 25  shop around for the best prices. return goods that are unsafe/defective for a full refund. reject goods that are not the same as the sample marketed. cancel/renew fixed term agreements. request written quotations and cost estimates. Right to privacy and confidentiality Consumers have the right to stop/restrict unwanted direct marketing. They can object to unwanted promotional e-mails/telesales. They have the right to stop/lodge complaints about the sharing of their personal details. Right to fair and honest dealings Suppliers may not use physical force or harass customers. Suppliers may not give misleading/false information. Businesses may not promote pyramid schemes and/or chain-letter schemes Businesses may not overbook/oversell goods/services and then not honour the agreement. Right to information about products and agreements/Right to disclosure and information Contracts and agreements should be in plain language and easy to understand. Businesses should display prices which are fully inclusive disclosing all costs. Businesses should label products and trade descriptions correctly Consumers may request the unit and bulk price of the same product. If two prices for the same product are displayed, consumers should pay the lower price. All information related to the country of origin, expiry dates/ingredients of the products should be disclosed. Right to fair/responsible marketing/promotion Businesses should not mislead consumers on pricing, benefits/uses of goods. Consumers may cancel purchases made through direct marketing within five working days/cooling off-period. All information related to the country of origin/expiry dates/ingredients of the products should be disclosed/clearly labelled. Page | 26 Right to accountability from suppliers Consumers have the right to be protected in lay-bye agreements. Businesses should honour credit vouchers and prepaid services. Right to fair/just/reasonable terms and conditions Businesses should provide consumers with written notices of clauses that may limit consumer rights. Businesses may not market/sell goods at unfair prices. Right to equality in the consumer market place Businesses should not limit access to goods and services. Businesses may not vary the quality of their goods to different consumers. Businesses should not discriminate when marketing their products and services in different areas/places. Businesses may not charge different prices for the same goods/services. Quality of goods may not vary when supplied to different consumers. Right to return goods/have goods replaced/claim a refund Goods that are unsafe/ defective may be replaced by the supplier. Faulty items may be returned for a full refund. They may return faulty items if the fault occurs within six months after purchasing the item. Right to complain Consumers may use various methods/channels to complain about poor quality goods/services. They can complain via customer care desks/consumer hotlines/ombudsman etc. Right to fair value/good quality/safety Businesses should provide consumers with written notices of clauses that may limit consumer rights. Businesses may not market/sell goods at unfair prices. Right to fair value/good quality/safety Consumers may demand quality services/goods. They may receive an implied/written warranty. Cancel /renew fixed term agreements To be informed about hazardous/dangerous products Reject goods that are not the same as the sample marketed Return faulty items if the fault occurs within six months after purchasing the item. Page | 27  PLACEMENT Elaborate on the meaning of placement. Outline/Explain/Discuss the placement procedure. Explain/Discuss/the importance of training/skills development in HR. SALARY DETERMINATION Explain/Differentiate/Distinguish between piece meal and time-related salary determination methods. Explain the link between salary determination and the Basic Conditions of Employment Act. FRINGE BENEFITS/PERKS Name/State/Give examples of employee benefits, e.g.: o Pension o Medical aid o Provident fund o Allowances Discuss/Evaluate the impact (positives/advantages and/or negatives/disadvantages) of fringe benefits on businesses. Compulsory benefits Explain UIF as a benefit required by law. LEGISLATION Discuss the implications of the LRA/BCEA/EEA/SDA on the human resources function. TERMS AND DEFINITIONS TERM DEFINITION Job analysis The term “job analysis” refers to the components of job description and job specification as it relates to employees within an organisation. Job description Describes the duties and responsibilities of a specific job. Job specification Describes the minimum acceptable personal qualities/skills/ qualifications needed for the job. Recruitment Recruitment is the process used by business to identify vacancies in the business and attract suitable candidates for it. Internal recruitment Refers to the use of internal sources to advertise vacancies within an organisation. External recruitment Refers to the use of external sources to advertise vacancies within an organisation. Interview Refers to a conversation between a job applicant and a representative of an employer which is conducted to assess whether the applicant should be hired for a vacancy. Page | 29 Interviewer Refers to the representative of an employer conducting the interview. Interviewee Refers to the job applicant who made himself available for the interview after being shortlisted. Induction Refers to the process of introducing new employees to the business and its related aspects. Placement Process whereby a new employee is placed in a vacant position. Training/Skills Refers to the acquisition of new skills and knowledge.by employees. development Retrenchment Process whereby an organisation reduces the number of employees for operational reasons. Employment contract Oral or written agreement specifying terms and conditions under which a person consents to perform certain duties in return for an agreed upon wage or salary. Piece-meal salary Workers are paid according to the number of items/units produced. determination Time-related salary Workers are paid for the amount of time they spend at work/on a task. determination Fringe benefits Compensation beyond a regular wage or salary to an employee, which are exempt from taxation as long as certain conditions are met. Compulsory benefits Refers to benefits that businesses are legally required to offer its employees. UIF The fund offers short-term financial assistance to workers when they become unemployed or are unable to work because of illness, maternity or adoption leave. BCEA This Act regulates labour practices and sets out the rights and duties of employees and employer. LRA Ensures social justice by establishing the rights and duties of employers and employees in the workplace. EEA Requires employers to engage in proactive employment practices to increase the representation of designated groups in the workplace. SDA This act regulates the improvement of the skills of workers by promoting education and training in the workplace. HUMAN RESOURCES ACTIVITIES RECRUITMENT Meaning of recruitment Recruitment is the process used by businesses to identify vacancies in the business and attract suitable candidates for it. It aims at finding candidates who have the necessary knowledge/ experience/ qualification to fill the vacancy. Businesses may choose to use an internal or external method of recruitment depending on the nature/requirements of the vacancy. It is an on-going process as employees leave their jobs for other jobs/get promoted /retire/as new technological skills are required. Page | 30 Meaning of Job Analysis A job analysis is a tool used by the human resources function to obtain and analyse information about the business’s workforce so that they can place the right person in the right job. A job analysis consists of job description and job specification. The employer must be clear about the nature of the work to be performed so that an appropriate job description and job specification can be prepared. Recruitment procedure The human resource manager should evaluate the job/prepare a job analysis, that includes the job specification/job description/in order to identify recruitment needs. The human resource manager (HRM) should prepare the job description in order to identify recruitment needs. HRM should indicate the job specification/description/key performance areas to attract suitable candidates. Choose the method of recruitment, e.g. internal/external, to reach/target the suitable applicants/candidates. Vacancies can be internally advertised via internal email/word of mouth/ posters/staff notices. If the external recruitment is chosen, the relevant recruitment sources should be selected, e.g. recruitment agencies/tertiary institutions/ newspapers, etc If internal recruitment is unsuccessful, external recruitment should be considered. If the external recruitment is done, the relevant recruitment source should be selected, e.g. recruitment agencies, tertiary institutions, newspapers, The advertisement should be prepared with the relevant information, e.g. the name of the company, contact details, contact person, etc. Place the advertisement in the appropriate media that will ensure that the best candidates apply. NOTE: The procedure can be in any order Differences between job description and job-specification JOB DESCRIPTION JOB SPECIFICATION Describes duties/responsibilities of a Describes the minimum acceptable personal specific job. qualities/ skills/ qualifications needed for the job. Written description of the job and its Written description of specific qualifications/ requirements/summary of the nature /type skills/ experience needed for the job. of the job. Describes key performance areas/ tasks for Describes key requirements of the person who a specific job, e.g. job title/working will fill the position, e.g. formal conditions/relationship of the job with other qualifications/willingness to travel/work unusual jobs in the business, etc. hours, etc. TYPES/METHODS OF RECRUITMENT INTERNAL RECRUITMENT AND EXTERNAL RECRUITMENT INTERNAL RECRUITMENT Refers to the use of internal sources to advertise vacancies inside the business. Page | 31 Sources of Internal recruitment Internal e-mails/Intranet/web sites to staff Word of mouth/Staff meetings Business newsletters/circulars to staff Internal/management referrals Office notice boards Internal bulletins Recommendation by current employees/staff Head hunting within the business/organisational database IMPACT OF INTERNAL RECRUITMENT Positives/Advantages Cheaper/Quicker to fill the post. Provides opportunities for career paths within the business. Reduces the chances of losing employees, as future career prospects are available Placement is easy, as management knows the employees' skills/personality/ experience/strengths. The employee already has an understanding of how the business operates./ Induction/Training is not always necessary. Detailed, reliable information can be obtained from the supervisors/ Employee records. AND/OR Negative/Disadvantages It may close the door to new ideas from outsiders. Employees who are not promoted may feel demotivated The promotion of an employee could cause resentment among other employees. The number of applicants from which to choose is limited to existing staff only. It is possible to promote certain employees who do not really have the required skills for the new job. The business has to spend more money on training/developing existing employees on the new position. EXTERNAL RECRUITMENT Refers to the use of external sources to advertise vacancies outside the business. Page | 33 Sources of external recruitment Recruitment agencies Bill boards Printed media, e.g. newspapers/flyers/magazines/posters Electronic media, e.g. radio/TV Social media/Social networks/Internet/Business websites Recruitment agencies Walk-ins Head hunting Professional associations Networking Educational/Training institutions IMPACT OF EXTERNAL RECRUITMENT Positives/Advantages New candidates bring new talents/ideas/experiences/skills into the business. There is a larger pool of candidates to choose from. It may help the business to meet affirmative action and BBBEE targets. Minimises unhappiness/conflict amongst current employees who may have applied for the post There is a better chance of getting a suitable candidate with the required skills/qualifications/competencies who do not need much training/ development which reduce costs. AND/OR Negatives/Disadvantages Information on CV's/referees may not be reliable. Many unsuitable applications can slow down the selection process. New candidates generally take longer to adjust to a new work environment. External sources can be expensive, e.g. recruitment agencies' fees/advertisements in newspapers/magazines. The selection process may not be effective and an incompetent candidate may be chosen. Recruitment process takes longer/is more expensive as background checks must be conducted. In-service training may be needed which decreases productivity during the time of training. SELECTION Selection procedure Option 1 Determine fair assessment criteria on which selection will be based. Page | 34  Applicants must submit the application forms/curriculum vitae and certified copies of personal documents/IDs/proof of qualifications, etc. Sort the received documents/CVs according to the assessment/selection criteria. Screen/Determine which applications meet the minimum job requirements and separate these from the rest. Preliminary interviews are conducted if many suitable applications were received. Reference checks should be made to verify the contents of CV's, e.g. contact previous employers to check work experience. Compile a shortlist of potential candidates identified. Shortlisted candidates may be subjected to various types of selection tests e.g. skills tests, etc. Invite shortlisted candidates for an interview. A written offer is made to the selected candidate. Inform unsuccessful applicants about the outcome of their application./Some adverts indicate the deadline for informing only successful candidates. NOTE: The procedure can be in any order Option 2 Receive documentation, e.g. application forms and sort it according to the criteria of the job. Evaluate CVs and create a shortlist/Screen the applicants. Check information in the CVs and contact references. Conduct preliminary sifting interviews to identify applicants who are not suitable for the job, although they meet all requirements. Assess/Test candidates who have applied for senior positions/to ensure the best candidate is chosen. Conduct interviews with shortlisted candidates. Offer employment in writing to the selected candidate(s). Screening as part of the selection procedure Check application documents against the requirements of the job. Candidates who meet the minimum requirements are separated from others. Do background/credit/reference checks of applicants who qualify for the job. Prepare a shortlist of suitable candidates after screening. Purpose of an interview To determine a candidate's suitability for the job. Obtains information about the strengths and weaknesses of each candidate. Evaluate the skills and personal characteristics of the applicant Helps the employer in choosing/making an informed decision about the most suitable candidate. Matches information provided by the applicant to the job requirements. Creates an opportunity where information about the business and applicant can be exchanged. Page | 35 Role of the interviewer when PREPARING/BEFORE the interview Book and prepare the venue for the interview. Inform all shortlisted candidates about the date and place of the interview. Set the interview date and ensure that all interviews take place on the same date, if possible. Notify all panel members conducting the interview about the date and place of the interview. The interviewer should develop a core set of questions based on the skills/knowledge/ ability required. Check/read the application/verify the CV of every candidate for anything that may need to be explained. Plan the programme for the interview and determine the time that should be allocated to each candidate. Allocate the same amount of time to interview each candidate on the program. Role of the interviewer and interviewee DURING the interview Role of the INTERVIEWER during the Role of the INTERVIEWEE during the interview interview Allocate the same amount of time to each Greet the interviewer by name with a candidate. solid handshake and a friendly smile. Introduce members of the interviewing panel Listen carefully to the questions before to each candidate/interviewee. responding. Make the interviewee feel at ease. Make eye contact and have good Explain the purpose of the interview to the posture/body language. panel and the interviewee. Show confidence and have a positive Record interviewees' responses for future attitude/be assertive. reference. Be inquisitive and show interest in the Do not misinform/mislead the interviewee. business. Avoid discriminatory/controversial types of Ask clarity seeking questions. questions, e.g. asking a female candidate Show respect and treat the interview about family planning/having children. with its due importance. Provide an opportunity for the interviewee to Be honest about mistakes and explain ask questions. how you dealt with it. Close the interview by thanking the Know your strengths and weaknesses interviewee for attending the interview and be prepared to discuss it Thank the interviewer for the opportunity given to be part of the interviews. Meaning of an Employment Contract Employment contract is an agreement between the employer and the employee and is legally binding. Aspects that should be included in an employment contract Personal details of the employee. Details of the business/employer e.g. name/address, etc. Job title/Position Job description e.g. duties/ working conditions Job specification e.g. formal qualifications/willingness to travel. Page | 36  Date of employment/commencement of employment. Place where employee will spend most of his/her working time. Hours of work, e.g. normal time/overtime. Remuneration, e.g. weekly or monthly pay. Benefits/Fringe benefits/Perks/Allowances. Leave, e.g. sick/maternity/annual/adoption leave. Employee deductions (compulsory/non-compulsory). Period of contract/Details of termination. Probation period. Signatures of both the employer and employee. List of documents that form part of the contract, e.g. appointment letter/code of conduct/ethics. Disciplinary policy, e.g. rules and disciplinary procedure for unacceptable behaviour Legal requirements of the employment contract The employer and employee must both sign the contract. Employer and employee must agree to any changes to the contract. No party may unilaterally change aspects of the employment contract. The remuneration package/including benefits must be clearly indicated. It may not contain any requirements that are in conflict with the BCEA. The employment contract should include a code of conduct and code of ethics. Aspects of the employment contract can be renegotiated during the course of employment. The employer must explain the terms and conditions of the employment contract to the employee. Conditions of employment/duties/responsibilities of the employees must be stipulated clearly. All business policies, procedures and disciplinary codes/rules can form part of the employment contract. The employer must allow the employee to thoroughly read through the contract before it is signed. Reasons for terminating an employment contract Resignation Occurs when an employee chooses to leave the organisation voluntary for better job opportunities. Example: An employee seeking employment with another employer. Retrenchment The employer may let go of some employees due to insolvency. Example: Employer may not be able to pay the employees Dismissal Occurs when the employee is asked to leave the organisation due to bad conduct, breach of contract or illegal behaviour. Example: Dishonesty / Absence with-out leave. Page | 38 Retirement Occurs when an employee reaches certain age and do not have to work any longer. Example: An employee reaching the age of 60/65 years and does not want to work any longer. Redundancy Occurs when an employer no longer has work for employees and cannot fulfil the contract. Example: When a sub-contract is not renewed, and workers are no longer required. Other reasons Incapacity to work due to illness / injuries. By mutual agreement between the employer and the employee The duration of the employment contract had come to an end. INDUCTION Meaning of induction New employees are familiarised with their new physical work environment/ organisational culture/products and services. New employees are informed about the processes/procedures of the business. New employees should have a basic knowledge of what is expected in the job. /Understand his role and responsibilities in his new job. New employees must be well conversant with the business safety regulations and rules. Purpose of induction Introduce new employees to management/colleagues to establish relationships with fellow colleagues at different levels. Give new employees a tour/information about the layout of the building/office Make new employees feel welcome by introducing them to their physical work space. Improve skills through in-service training Familiarise new employees with the organisational structure/their supervisors Allow new employees the opportunity to ask questions that will put them at ease/reduce insecurity/anxiety/fear. Create opportunities for new employees to experience/explore different departments. Explain safety regulations and rules, so that new employees will understand their role/responsibilities in this regard. Ensure that employees understand their roles/responsibilities so that they will be more efficient/productive. Communicate information about the products/services offered by the business Communicate business policies regarding ethical/professional conduct/ procedures/employment contract/conditions of employment, etc. NOTE: Businesses use the purpose of induction to draw up the induction programme. Aspects to be included in an induction programme Introduction to key people and immediate colleagues. Safety regulations and rules. Overview of the business. Tour of the premises. Page | 39  Discussion of the employment contract and conditions of service. Discussion of employee benefits Information about the business products/services. Meeting with senior management who will explain the company's vision/value descriptions/daily tasks. Conditions of employment, e.g. working hours/leave application process/disciplinary procedures, etc. Administration details on systems/processes/logistics. Discussion of personnel policies, e.g. making private phone calls/using the Internet, etc. Corporate social responsibility programmes. Benefits of induction Increases quality of performance/productivity Allows new employees to settle in quickly and work effectively. Ensures that new employees understands rules and restrictions in the business. New employees may establish relationships with fellow employees at different levels. Employees will be familiar with organisational structures, e.g., who are their supervisors/low level manager. Make new employees feel at ease in the workplace, which reduces anxiety/ insecurity/fear. New employees will understand their role/responsibilities concerning safety regulations and rules Minimises/Decreases the need for on-going training and development. The results obtained during the induction process provide a base for focused training. Opportunities are created for new employees to experience/explore different departments New employees will know the layout of the building/factory/offices/where everything is, which saves production time. Learn more about the business so that new employees understand their roles/ responsibilities in order to be more efficient. Company policies are communicated, regarding conduct and procedures/safety and security/employment contract/conditions of employment/working hours/leave. Realistic expectations for new employees as well as the business are created. New employees may feel part of the team resulting in positive morale and motivation. Employees may have a better understanding of business policies regarding ethical/professional conduct/procedures/CSR, etc. Reduces the staff turnover as new employees have been inducted properly NOTE: Businesses must benefit from inducting new employees. Do not confuse the purpose of induction with the benefits. Page | 40 PLACEMENT Meaning of placement Selected candidates are placed where they will function optimally and add value to the business. A specific job is assigned to the selected candidate. The qualifications/skills/personality of the selected candidate is matched with the requirements of the job. Placement procedure Employer should outline specific responsibilities/expectations of the employee new position. The employer should determine the relationship/similarities between the expectations of the position and the competencies of the employee. Determine the employee’s strengths/weaknesses/skills/ interests by subjecting him to various psychometric tests. The importance of training/skills development in HRM The employee who receives the necessary training is more able to perform in their job. The investment in training that a company makes shows employees that they are valued. An effective training program allows employees to strengthen their skills. Productivity usually increases when the human resources function implements training courses. Ongoing training and up skilling of the workforce, encourages creativity. SALARY DETERMINATION METHODS DISTINCTION BETWEEN PIECEMEAL AND TIME-RELATED SALARY DETERMINATION PIECEMEAL TIME-RELATED Workers are paid according to the number of Workers are paid for the amount of time items/ units produced /action performed. they spend at work/on a task. Workers are not remunerated for the number Workers with the same of hours worked, regardless of how long it experience/qualifications are paid on salary takes them to make the items scales regardless of the amount of work done. Mostly used in factories particularly in the Many private and public sector businesses textile/technology industries. use this method LINK BETWEEN SALARY DETERMINATION AND THE BCEA BCEA outlines legalities, such as the employment contract, which may affect salary determination. Payment of salaries should be based on whether the employee is permanent or employed on a fixed contract The BCEA sets out conditions that ensure fair labour and human resources practices. According to the BCEA, businesses may use different remuneration methods to pay their employees. Businesses are supposed to deduct income tax (PAYE) from the employees' taxable salaries. Page | 41 FRINGE BENEFITS Examples of fringe benefits in the workplace Medical Aid Fund/Health Insurance Fund Pension Fund Provident Fund Funeral benefits Car/Travel/Housing/Cell phone/Clothing allowance Performance based incentives Issuing of bonus shares Staff discount/Free or low cost meal/Canteen facilities BENEFITS REQUIRED BY THE LAW Unemployment Insurance Fund (UIF) The employer and the worker each contribute 1%. Employers must pay unemployment insurance contributions of 2% of the value of each worker’s salary per month The fund also assists the dependants of a contributing worker who has died. The fund offers short-term financial assistance to workers when they become unemployed or are unable to work due to illness, maternity or adoption leave. Contributions are paid to the Unemployment Insurance Fund (UIF) or the South African Revenue Services (SARS). IMPACT OF FRINGE BENEFITS ON BUSINESSES Positives/Advantages Improves productivity\ resulting in higher profitability. Attractive fringe benefit packages may result in higher employee retention/reduces employee turnover. Attracts qualified/skilled/experienced employees who may positively contribute towards the business goals/objectives. It increases employee satisfaction/loyalty as they may be willing to go the extra mile. Businesses save money as benefits are tax deductible. Fringe benefits can be used as leverage for salary negotiations. AND/OR Negatives/Disadvantages Businesses who cannot offer fringe benefits fail to attract skilled workers. It can create conflict/lead to corruption if allocated unfairly. Fringe benefits are additional costs that may result in cash flow problems. Errors/Mistakes in benefit plans may lead to costly lawsuits/regulatory fines. Decreases business profits, as incentive/package/remuneration costs are higher. Businesses who offer employees different benefit plans may create resentment to those who receive less benefit resulting in lower productivity. Administrative costs increase as benefits need to be correctly recorded for tax purposes. Workers only stay with the business for fringe benefits and may not be committed/loyal to the tasks/business. Page | 42  Businesses have to pay advisors/attorneys to help them create benefit plans that comply with law IMPLICATIONS OF ACTS ON THE HUMAN RESOURCES FUNCTION Implications of the Labour Relations Act on the Human Resources Function Promotes resolution of labour disputes. Protects the rights of employees/employers as outlined in the Constitution. Advances economic development/social justice/labour peace. Provides for unresolved disputes to be referred to Labour Courts/Labour Appeal Courts. Promotes orderly negotiations and employee participation in decision making in the workplace. Workers cannot be easily dismissed as bargaining council/Commission for Conciliation, Mediation and Arbitration (CCMA) processes need to be followed. Provides a framework for bilateral meetings where employees, trade unions and employers discuss matters relating to employment. The human resource manager should allow workers to form workplace forums/trade unions to promote the interests of all employees. Clarify the transfer of contracts of employment/If a business is transferred to another owner then the employee contracts are also transferred. Implications of the Employment Equity Act on the Human Resources function Equal pay for work of equal value. Ensure that affirmative action promotes diversity in the workplace. The human resource manager must treat employees fairly and promote/provide equal opportunities in the workplace. Retrain/Develop/Train designated groups through skills development programmes. Define the appointment process clearly to ensure all parties are well informed. Compile employment equity plans that indicate how they will implement affirmative action. Assign a manager to ensure that the employment equity plan will be implemented/ regularly monitored. Display a summary of the Act where employees can clearly see it/have access to it. Report to the Department of Labour on the progress in the implementation of the equity plan. Conduct medical/psychological tests fairly to employees/when deemed necessary. Ensure that the workplace represents the demographics of the country at all levels. Restructure/Analyse current employment policies/practices/procedures to accommodate designated groups. Implication of the Skills Development Act (SDA) on the Human Resources function Contribute 1% of their salary bill to the Skills Development Levy/SDL. Ensure training in the workplace is formalised /structured Appoint a full/part time consultant as a Skills Development Facilitator. Page | 43  Assist managers in identifying skills/training needs to help them to introduce learnerships. The human resources manager should interpret the aims and requirements of the SDA and adapt workplace skills training programmes accordingly. Identify the training needs of the employees and provide them with training opportunities so that they will perform their tasks efficiently. Use the National Qualification Framework/NQF to assess the skills levels of employees. Interpret/Implement the aims/requirements of the framework for the National Skills Development Strategy. Implications of the Basic Conditions of Employment Act (BCEA) on the Human Resources function Workers must receive double if they work during public holidays/Sunday. They must have a break of 60 minutes after five hours of work. Businesses should not employ children under the age of 16. Workers can take up to six weeks paid sick leave during a 36-month cycle Workers should only work 9 hours per day in a 5 day work week./8 hours per day in a 6 day work week./Overtime should not exceed 10 hours per week. Page | 44 TERMS AND DEFINITIONS TERM DEFINITION Business ethics Ideas about what is morally correct or not applied in a business situation. Ethical behaviour Acting in ways consistent with what society and individuals think are good values. Business practice A procedure/rule employed or followed by a business in the pursuit of its objectives. Professionalism Describes the internationally accepted standards/expectations that society has of people’s conduct and levels of competence in the workplace. Tax evasion When a business does not declare all their income to SARS with the aim of paying less tax. Corporate governance The exercise of ethical and effe