2025 Grade 12 Business Studies Past Paper PDF

IMPACT OF RECENT LEGISLATION ON BUSINESSES 2025/NW/CHAPTER 1 BUSINESS STUDIES GRADE 12...

IMPACT OF RECENT LEGISLATION ON BUSINESSES 2025/NW/CHAPTER 1 BUSINESS STUDIES GRADE 12 TERM ONE WEEK 1-4 REVISED CHAPTER 1 NOTES ON THE IMPACT OF RECENT LEGISLATION ON BUSINESSES 2025 Table of Contents A. REFER TO PAGE 7 AND 8 OF THE 2021 EXAM GUIDELINE.................................................................. 3 B. TERMS AND DEFINITIONS.................................................................................................................. 4-5 1. THE SKILLS DEVELOPMENT ACT.......................................................................................................... 5 1.1 Purpose of the Skills Development Act.......................................................................................... 5 1.2 Impact of the SDA on businesses.................................................................................................. 5-6 1.3 Penalties for non-compliance....................................................................................................... 6 1.4 Ways in which businesses can comply with the SDA.................................................................... 6 1.5 Role/functions of SETAs................................................................................................................ 6-7 1.5.2 Funding of SETAs.................................................................................................................... 7 1.6 Meaning of learnership................................................................................................................. 7 1.7 National Skills Development Strategy and the Human Resource Development Strategy............ 7 2. LABOUR RELATIONS ACT/LRA........................................................................................................... 8 2.1 Purpose of the Labour Relations................................................................................................. 8 2.2 Impact of the LRA on business.................................................................................................... 8 -9 2.3 Penalties for non-compliance with the LRA................................................................................ 9 1  IMPACT OF RECENT LEGISLATION ON BUSINESSES 2025/NW/CHAPTER 1 2.4 Ways in which businesses can comply with the LRA.................................................................. 9 2.5 The rights of employers and employees according to LRA......................................................... 9 2.5.1 Rights of employers............................................................................................................. 9 2.5.2 Rights of employees............................................................................................................. 9 3. EMPLOYMENT EQUITY ACT /EEA.................................................................................................. 10 3.1 Purpose of the EEA...................................................................................................................... 10 3.2 Impact of the EEA on business................................................................................................... 10 -11 3.3 Penalties for non-compliance with the EEA................................................................................ 11 3.4 Ways in which businesses can comply with the EEA................................................................. 11 4. Basic Conditions of Employment Act/BCEA.................................................................................. 12 4.1 Purpose of the BCEA.......................................................................................... 12 4.3 Impact of the BCEA.................................................................................................................. 12 4.4 Penalties businesses may face for not complying with the BCEA.............................................. 12 4.5 Ways in which businesses can comply with the BCEA................................................................ 13 4.6 Provisions of the BCEA................................................................................................................ 13 4.6.1 Regulation of working time: Ordinary hours of workers/Overtime /Meal intervals and rest periods/Sunday work/public holidays Hours of work/Work hours.................................... 13-14 4.6.2 Leave: annual/ sick/family responsibility/maternity/paternity/parental............................... 14-15 4.6.3 Particulars of employment contract and remuneration..................................................... 15 4.6.4 Prohibition of employment of children and forced labour........................................................................................................... 16 4.6.5 Termination of employment......................................................................................... 16 5 Compensation for Occupational Injuries & Diseases Act/COIDA................................................. 16 5.1 Purpose of COIDA........................................................................................................................ 16 5.2 Impact of the COIDA on businesses............................................................................................ 16 -17 5.3 Penalties for non-compliance with COIDA.................................................................................. 17 5.4 Ways in which businesses can comply with the COIDA 17 6 Broad Based Black Economic Employment Act/BBBEE................................................................ 18 6.1 Purpose of BBBEE........................................................................................................................ 18 6.2 Distinguish/Differentiate between Black Economic Empowerment (BEE) and the BBBEE Act 18 6.3 Implications of the revised BBBEE pillars on businesses AND Ways to apply the pillars 18 6.3.1 Management control: 19 6.3.2 Skills development................................................................................................ 19 6.3.3 Ownership............................................................................................................................ 19-20 6.3.4 Enterprise and supplier development (ESD)...................................................................... 20 6.3.5 Socio-economic development /Social responsibility/........................................................... 20 6.4 Impact of the BBBEE on businesses.......................................................................................... 21 6.5 Penalties for non-compliance with the BBBEE........................................................................... 21-22 2 IMPACT OF RECENT LEGISLATION ON BUSINESSES 2025/NW/CHAPTER 1 6.6 Ways in which businesses can comply with the BBBEE.............................................................. 22 7 National Credit Act.......................................................................................................... 22 7.1 Purpose of the NCA..................................................................................................................... 22 7.2 Impact of the NCA on businesses............................................................................................... 22 -23 7.3 Penalties/consequences for non-compliance with the NCA...................................................... 23 7.4 Ways in which businesses can comply with the NCA................................................................. 23 7.5 Consumer rights in term of the NCA........................................................................................... 24 8 Consumer Protection Act................................................................................................. 24 8.1 Purpose of the Consumer Protection Act................................................................................... 24 8.2 Impact of the CPA on businesses................................................................................................ 25 8.3 Penalties for non-compliance with the NCA............................................................................... 25 8.4 Ways in which businesses can comply with the CPA................................................................. 25 8.5 Consumer rights of the Consumer Protection Act................................................................ 26 8.5.1 Right to choose.................................................................................................................... 26 8.5.2 Right to privacy.................................................................................................................... 26 8.5.3 Right to fair and honest dealings......................................................................................... 26 8.5.4 Right to disclosure and information.................................................................................... 26 8.5.5 Right to fair and responsible marketing.............................................................................. 26 8.5.6 Right to accountability from suppliers................................................................................. 26 8.5.7 Right to fair/just/reasonable terms and conditions............................................................ 27 8.5.8 Right to equality in the consumer market place.................................................................. 27 8.5.9 Right to fair value/good quality/safety.............................................................................. 27 A. REFER TO PAGE 7 AND 8 OF THE 2021 EXAM GUIDELINE CONTENT DETAILS FOR TEACHING, LEARNING AND ASSESSMENT PURPOSES Outline/Describe/Explain/Discuss the purpose of all EIGHT Acts Discuss/Explain/Evaluate the impact (positives/advantages and/or negatives/ disadvantages) of the Acts on businesses Outline/Discuss/Recommend the rights of the LRA on employers and employees/rights of consumer rights according to the NCA and CPA. Explain the National Skills Development Strategy and the Human Resource Development Strategy (i.e. Sector Education and Training Authorities). Outline/ Explain/Discuss the role/functions of SETA’s Explain how SETA’s are funded Discuss the impact of each Act on businesses Outline the BBBEE pillars Recommend/Suggest ways in which businesses could apply the revised FIVE pillars of BBBEE in the workplace. Outline/Explain/Discuss penalties/consequences for non-compliance. Define/Elaborate on the meaning of learnerships Suggest/Recommend ways in which businesses can comply with the Acts. 3 IMPACT OF RECENT LEGISLATION ON BUSINESSES 2025/NW/CHAPTER 1 Discuss Provisions of the BCEA B. TERMS AND DEFINITIONS Term Definition Skills Development The main aim of this Act is to improve the skill levels of people who are already employed in Act/SDA the business. Skills Development It was introduced to ensure that businesses contribute to the development of skills of Levy/SDL employees. PDI’s Previously Disadvantaged Individuals or designated group. SETAs SETA’s were established in order to implement and monitor the implementation of the Skills Development Act. Labour Relations Act/LRA This Act was introduced to promote simple procedures for the resolution of labour disputes in the workplace. Negotiations between employers’ association and trade unions on matters such as Collective bargaining wages/conditions of employment. Collective agreement Agreement between the employer organisations and trade unions. Dispute A disagreement between the employer and the employee Bargain councils It is formed by registered trade unions and employer organisations in order to prevent/resolve labour disputes. Employment Equity The main aim of this Act is to ensure that equal job opportunities are given to all people Act/EEA regardless of race/culture/language/age/religion/disability etc. Affirmative Action It was designed to ensure that suitable and qualified previously disadvantaged individuals are given equal job opportunities. Affirmative action forms part of the Employment Equity Act. Basic Conditions of This Act sets the minimum standard for employment in order to promote fair labour practice. Employment Act/BCEA Compensation for The Act gives employees who are injured or contract diseases while on duty the right to Occupational claim compensation. Injuries and Diseases Act/COIDA Broad-Based Black The Act was introduced in order to ensure full economic participation of previously Economic disadvantaged individuals. Empowerment Act/BBBEE National Credit Act This Act was introduced to protect consumers against unfair and reckless credit granting by businesses. Credit providers All businesses that offer goods and services on credit National credit The NCR is responsible for the regulation of the South African credit industry. This means Regulator/NCR that all businesses that offer good and services on credit must be registered with the NCR. 4 IMPACT OF RECENT LEGISLATION ON BUSINESSES 2025/NW/CHAPTER 1 Debt review/ This is a debt solution targeted at South African consumers who are over indebted and Debt counselling struggling to manage their finances. Consumer The main aim of this Act is to promote/protect the economic interests of consumers by Protection Act 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. Week1: 15 Jan -21 Jan 1. THE SKILLS DEVELOPMENT ACT 1.1 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 Provides the systematic implementation of strategies on national, sector and workplace basis. 1.2 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 Increases investment in education and training in the labour market. 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 Businesses may claim back some costs of training as a refund from relevant SETAs. AND/OR Negative/Disadvantages The SDA process is prescriptive/requires a large amount of paper work/administration, that can cost time/money. 5 IMPACT OF RECENT LEGISLATION ON BUSINESSES 2025/NW/CHAPTER 1 Many courses offered by companies may not have unit standards that relate to the course content 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. 1.3 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. 1.4 Ways in which businesses can comply with the SDA Employers who collect PAYE should register with SETAs. One per cent (1%) of an employer's payroll has to be paid over to the SETA through SARS. 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. Businesses should register with SARS in the area in which their business is classified (in terms of the SETAs). 1.5 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. 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. 6 IMPACT OF RECENT LEGISLATION ON BUSINESSES 2025/NW/CHAPTER 1 Promote learnerships and learning programmes by identifying suitable workplaces for practical work experience. 1.5.1 Funding of SETAs Skills Development levies paid by employers e.g. 80% is distributed to the different SETA and 20% is paid into the National Skills Fund. Donations and grants from the public Surplus funds from government institutions Funds received from rendering their services. 1.6 Meaning of learnership Theoretical/Practical training opportunities that can lead to a recognised occupational qualification. Structured learning programme completed during work hours for a specified period of time. Agreement between a learner/trainee, employer and a 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. 1.7 National Skills Development Strategy and the Human Resource Development Strategy Meaning of the National Skills Development Strategy (NSDS) Increase access to programmes that train people. Promote the public FET college system that has programmes to meet the skills needed by SETA's/ local/regional/provincial/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. Increase the skills of the public sector to improve service delivery. Build career/vocational guidance/training centres. Guides work of SETA's /the 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 the Human Resource Development Strategy Addresses skills shortages in the South African workforce. Aims at achieving faster economic growth/higher employment levels and reduced levels of poverty. Promotes social development/social justice and helps to alleviate poverty. Develops short term and long-term workforce skills. Improves the supply of skills. Increases employee participation in lifelong learning. 7 IMPACT OF RECENT LEGISLATION ON BUSINESSES 2025/NW/CHAPTER 1 Week 2: 22 Jan-28 Jan 2. LABOUR RELATIONS ACT/LRA 2.1 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. 2.2 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. Provide sound dispute resolution processes through consensus between organised labour, businesses and state. 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 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. 8 IMPACT OF RECENT LEGISLATION ON BUSINESSES 2025/NW/CHAPTER 1 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. 2.3 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. 2.4 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. 2.5 The rights of employers and employees according to LRA 2.5.1 Rights of employers Form employer organisations to represent them in labour related matters. 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. 2.5.2 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. 9 IMPACT OF RECENT LEGISLATION ON BUSINESSES 2025/NW/CHAPTER 1 Week 3: 29 Jan-04 Feb  EMPLOYMENT EQUITY ACT /EEA  Basic Conditions of Employment Act including the provisions of the Act  Compensation for Occupational Injuries & Diseases Act 3. EMPLOYMENT EQUITY ACT /EEA 3.1 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 of all population groups in the workplace 3.2 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 candidates are appointed 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. 10 IMPACT OF RECENT LEGISLATION ON BUSINESSES 2025/NW/CHAPTER 1 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. 3.3 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 brought before 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. 3.4 Ways in which businesses can comply with the EEA Businesses must guard against discriminatory appointments. Promote equal opportunities and fair treatment Employees must be paid equal for work of equal value. Implement an employment equity plan. 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. Use certified psychometric tests to assess applicants/employees to ensure that suitable candidates are appointed Conduct medical/psychological tests fairly to employees/when deemed necessary. 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. 11 IMPACT OF RECENT LEGISLATION ON BUSINESSES 2025/NW/CHAPTER 1 4. Basic Conditions of Employment Act/BCEA 4.1 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 4.2 Impact of the BCEA Positives/Advantages Creates a framework of acceptable employment practices e.g., work hours, leave, etc. 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. 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. 4.3 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. 12 IMPACT OF RECENT LEGISLATION ON BUSINESSES 2025/NW/CHAPTER 1 4.4 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. 4.5 Provisions of the BCEA Regulation of working time: Ordinary hours of workers/Overtime /Meal intervals and rest periods/Sunday work/public holidays. Leave: annual/ sick/family responsibility/maternity/paternity/parental Particulars of employment contract and remuneration Prohibition of employment of children and forced labour. Termination of employment 4.5.1 Regulation of working time: Ordinary hours of workers/Overtime /Meal intervals and rest periods/Sunday work/public holidays Ordinary hours of workers 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 Workers may work 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. 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: o One and half times the normal rate of pay for overtime worked on week days and Saturdays. o Double the normal rate of pay for overtime worked on Sundays and public holidays. o 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 Meal intervals and rest periods 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. 13 IMPACT OF RECENT LEGISLATION ON BUSINESSES 2025/NW/CHAPTER 1 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. 4.5.2 Leave: Annual/ sick/family responsibility/maternity/paternity/parental 4.5.2.1 Types of leave Annual leave Workers are entitled to: 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 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 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. Parental/Adoptive /Paternity 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. 14 IMPACT OF RECENT LEGISLATION ON BUSINESSES 2025/NW/CHAPTER 1 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 4.5.3 Particulars of employment contract and remuneration Particulars of employment An employer must supply employee when the employee commences employment, with the following particulars in writing: (a) full name and address of the employer (b) name and occupation of the employee or a brief description of the of the work (c) various places of work (d) date of employment (e) ordinary hours of work and days of work (f) wage or the rate and method of calculating (g) rate of overtime work (h) any other cash payments (i) any payment in kind and the value thereof (j) frequency of remuneration (j) any deductions (k) leave entitlement (l) period of notice or period of contract Information about remuneration The following information must be given in writing when the employee is paid (a) employer’s name and address (b) employee’s name and occupation (c) period of payment (d) remuneration in money (e) any deduction made from the remuneration (f) the actual amount paid, and (g) if relevant to the calculation of that employee’s remuneration (h) employee’s rate of remuneration and overtime rate (i) number of ordinary and overtime hours worked during the period of payment (j) number of hours worked on Sunday and public holiday during the period, and (k) if an agreement to average working time has been concluded, the total number of ordinary and overtime hours worked in the period of averaging 15 IMPACT OF RECENT LEGISLATION ON BUSINESSES 2025/NW/CHAPTER 1 4.5.4 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. 4.5.5 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. 5 Compensation for Occupational Injuries & Diseases Act/COIDA 5.1 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 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. 5.2 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. 16 IMPACT OF RECENT LEGISLATION ON BUSINESSES 2025/NW/CHAPTER 1 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 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. 5.3 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. 5.4 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. 17 IMPACT OF RECENT LEGISLATION ON BUSINESSES 2025/NW/CHAPTER 1 Week 4: 05 Feb-11 Feb  Broad Based Black Economic Employment Act/BBBEE  National Credit Act  Consumer Protection Act 6. Broad Based Black Economic Employment Act/BBBEE 6.1 Purpose of BBBEE BBBEE enables 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. Empowers the Minister to issue Codes of Good Practice and publish transformation charters. Establishes the Black Economic Empowerment Advisory Council, which addresses matters related to black empowerment. 6.2. Distinguish/Differentiate between Black Economic Empowerment (BEE) and the BBBEE Act BEE BBBEE - A government policy that may not always be - An Act that is enforced/must be complied with by enforced. businesses. - Benefitted only a few previously disadvantaged - Encourages a wider group of previously people in the economy disadvantaged people – which includes black women, people who are physically challenged, youth, and people in rural areas – to participate in the economy. - This resulted in a few previously disadvantaged - Aims to distribute the country’s wealth across a individuals sharing in the wealth of the broader spectrum of society. economy. - Focused only on three pillars that did not - Focuses on five pillars – which include all sectors of include all previously disadvantaged people. the society – especially the previously disadvantaged people and previously disadvantaged communities. 6.3 Implications AND Application of the revised BBBEE pillars on businesses 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: the last sentences of EACH pillar speak to things that prevent businesses from implementing the pillar. Revised FIVE BBBEE PILLARS Management control Skills development Ownership Enterprise and supplier development (ESD) Socio-economic development/social responsibility 18 IMPACT OF RECENT LEGISLATION ON BUSINESSES 2025/NW/CHAPTER 1 6.3.1 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. 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. 6.3.2 Skills development Implication of skills development on businesses Business must engage black employees in skills development initiatives. Provide learnerships / 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 6.3.3 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. 19 IMPACT OF RECENT LEGISLATION ON BUSINESSES 2025/NW/CHAPTER 1 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 6.3.4 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 by contributing loans/donations/consulting services/advice/entrepreneurial programmes. Develop the business skills of small/black owned suppliers, e.g. sales techniques, legal advice. Support the cash flow of small suppliers by offering them preferential terms of payment. Businesses should invest in/support black owned SMMEs to make them more 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 Contribution can be monetary, e.g. loans/investments/donations. Contribution can be non-monetary, e.g. consulting services/advice/entrepreneurial programmes, etc. SMMEs will be encouraged to use their own business initiatives to make them sustainable. Develop and implement a supplier development plan/supply chain. 6.3.5 Socio-economic development/Social responsibility 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 They should distribute scarce CSI resources to selected beneficiaries in the community. Businesses may not be knowledgeable about societal issues resulting in wasting financial resources on meaningless community projects. Contribute towards social investment/community projects. 20 IMPACT OF RECENT LEGISLATION ON BUSINESSES 2025/NW/CHAPTER 1 6.4 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. 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 shareholders/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. 6.5 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 21 IMPACT OF RECENT LEGISLATION ON BUSINESSES 2025/NW/CHAPTER 1 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. 6.6 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. 7. National Credit Act 7.1 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. 7.2 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 22 IMPACT OF RECENT LEGISLATION ON BUSINESSES 2025/NW/CHAPTER 1 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. Leads to loss of sales as many consumers may no longer qualify to buy on credit. The paperwork and administrative process required by the act are costly and time consuming. 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. 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. 7.3 Penalties/consequences for non-compliance with the NCA The business may not demand payment, sue or attach the client’s/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 noncompliance. The business will bear all costs of removing the negative information of clients/ consumers who were blacklisted as a result of reckless lending. 7.4 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. 23 IMPACT OF RECENT LEGISLATION ON BUSINESSES 2025/NW/CHAPTER 1 7.5 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. 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 8. Consumer Protection Act 8.1 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 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 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. 24 IMPACT OF RECENT LEGISLATION ON BUSINESSES 2025/NW/CHAPTER 1 8.2 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 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 replace 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. 8.3 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. 8.4 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. 25 IMPACT OF RECENT LEGISLATION ON BUSINESSES 2025/NW/CHAPTER 1 Implement measures that will facilitate complaints, e.g. suggestion boxes. 8.5 Consumer rights of the Consumer Protection Act 8.5.1 Right to choose Consumers have the right to choose: choose suppliers and/or goods. 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. 8.5.2 Right to privacy Right to restrict unwanted direct marketing. Regulation of time for contacting consumers 8.5.3 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. 8.5.4 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. 8.5.5 Right to fair and responsible marketing 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. 8.5.6 Right to accountability by suppliers Consumers have the right to be protected in lay-bye agreement. Businesses should honour credit vouchers and prepaid services. 26 IMPACT OF RECENT LEGISLATION ON BUSINESSES 2025/NW/CHAPTER 1 8.5.7 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. 8.5.8 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. 8.5.9 Right to fair value/good quality and safety Businesses should provide consumers with written notices of clauses that may limit consumer rights. Businesses may not market/sell goods at unfair prices. 27