Transcript Fasset

Labour Law
Update 2008
August & September
2008
Introduction

The Constitution

The Basic Conditions of Employment Act
(“BCEA”)

The Labour Relations Act (“LRA”)

The Employment Equity Act (“EEA”)

The Compensation for Occupational Injuries and
Diseases Act (“COIDA”)
2
Introduction

The Occupational Health and Safety Act
(“OSHA”)

The Protected Disclosures Act (“PDA”)

Unemployment Insurance

Immigration Law

The Prevention and Combating of Corrupt
Activities Act (“PCCA”)
3
Introduction

Simplified Court Structure
–
Constitutional Court (“CC”)
–
Labour Appeal Court (“LAC”)
–
Labour Court (“LC”)
–
CCMA/Bargaining Council
4
Introduction

Unfair Dismissal Disputes
–
Conciliation at the CCMA/Bargaining Council
–
Depending on the type of dismissal

Arbitration at the CCMA/Bargaining
Council; or

Labour Court for adjudication
5
The Constitution

General Characteristics of Constitutionality
–
Constitutional Supremacy
–
Entrenched Bill of Rights
–
Extensive powers of interpretation of statutes
and enforcement of rights granted to the
courts
–
Importance of human rights
6
The Constitution

The Bill of Rights contains several
provisions relevant to labour law including:
–
Protection against discrimination
–
Protection against forced labour and servitude
–
The right to pursue an occupation
–
The right to freedom of association
–
Protection of children against exploitative labour
practices
7
The Constitution

Section 23
–
Everyone has the right to fair labour practices
–
Every worker has the right to form and join a trade
union, participate in union activities and strike
–

Every trade union, employer’s organisation and
employer has the right to engage in collective
bargaining
The Impact of the Constitution on Labour Law –
See p1 of the handbook
8
Basic Conditions of
Employment Act

Overview – see p 3 of the handbook

The Regulation of Working Time
–
Exclusions from this provision:

Senior managerial employees

Sales reps who regulate their own hours

Employees who work less than 24 hours per
month

Employees who earn in excess of R149 736 per
annum
9
Basic Conditions of
Employment Act

The Regulation of Working Time
–
An employer must regulate working time of
employees

In accordance with health and safety provisions

With due regard to the Code of Good practice

With due regard for family responsibility leave
10
Basic Conditions of
Employment Act

Ordinary Hours of Work
–
Employee cannot work for more than 45 hours per
week
–
Employee cannot work more than 9 hours in a day if
he/she works 5 days in a week
–
Employee cannot work more than 8 hours in a day if
he/she works more than 5 days in a week
–
Extension of ordinary hours up to 15 minutes per day
but not more than 60 minutes per week
11
Basic Conditions of
Employment Act

Overtime
–
Only applies if earning less than R149 736 per annum
–
Must be by agreement
–
–
–
Can’t agree to work more than 12 consecutive hours per
day
Can’t agree to work more than 10 hours of overtime per
week
One and a half times ordinary wage / paid time off within 1
month of becoming entitled to it
12
Basic Conditions of
Employment Act

Meal Intervals
–
Only applies if earning less than R149 736 per annum
–
Employees who work continuously for more than
5 hours entitled to meal interval of 1 continuous hour
–
During meal interval, only required to perform those
duties that can’t be left unattended
13
Basic Conditions of
Employment Act

Meal Intervals
–
Employee who works during meal interval entitled to
be remunerated
–
Can agree in writing to reduce meal interval to
30 minutes
–
Dispense with meal interval if less than 6 hours per
day
14
Basic Conditions of
Employment Act

Pay for work on Sundays
–
Entitled to double the wage if don’t normally work
–
If normally work then entitled to one and a half times
–
Paid time off to be granted within 1 month
15
Basic Conditions of
Employment Act

Daily and weekly rest period
–
Daily rest period of at least 12 consecutive hours
–
Can reduce to 10 hours if employee works on premises
and gets 3 hour meal interval
–
Weekly rest period of at least 36 consecutive hours
including Sunday, unless otherwise agreed
–
Can agree to reduce weekly rest period provided rest
period in following week is extended
–
Can agree on 60 consecutive hours every 2 weeks
16
Basic Conditions of
Employment Act

Night Work
–
Only applies if earning less than R149 736 per annum
–
Between 18h00 and 06h00
–
Must be by agreement
–
Shift allowance / reduction of working hours
–
Transport
17
Basic Conditions of
Employment Act

Night Work
–
Entitled to request medical examination in certain
circumstances
–
Inform employees of health and safety hazards and of
entitlement to medical exam
–
Maintain confidentiality of results of medical exam
–
Transfer employee to day work if employee’s health is
suffering because of night work
18
Basic Conditions of
Employment Act

Public Holidays
–
Only applies if earning less than R149 736 per annum
–
Employee not required to work unless agreed
–
If public holiday falls from Monday to Friday, pay
employee ordinary wage
–
If employee works, employer to pay double
–
Case law – see p 7 of the handbook
19
Basic Conditions of
Employment Act

Leave
–
–
Only applies if work more than 24 hours per month
Provisions don’t apply to leave granted in excess of
minimum
–
Different types of leave
–
Employer can grant unpaid leave (must be
reasonable)
20
Basic Conditions of
Employment Act

Annual Leave
–
Leave cycle: 12 months following commencement of
employment or completion of previous cycle
–
Employee to be granted at least:
–

21 consecutive days

1 day for every 17 days worked

1 hour for every 17 hours worked
To be granted not later than 6 months after the end of
the annual leave cycle
21
Basic Conditions of
Employment Act

Annual Leave
–
Accumulation of leave – see p8 of the handbook
–
Not required or permitted to take annual leave
during any period of notice
–
Grant additional day of leave if public holiday falls
on day employee would ordinarily work
–
Can’t pay employee in lieu of leave except on
termination of employment
22
Basic Conditions of
Employment Act

Sick Leave
–
Sick leave cycle: the period of 36 months’
employment following commencement of employment
or completion of the previous sick leave cycle
–
Entitled to the amount of days employee would
normally work during a period of 6 weeks
–
But, during the first 6 months, employee entitled to 1
day for every 26 days worked
–
Entitled to wage would ordinarily have received
23
Basic Conditions of
Employment Act

Sick Leave
–
More than 2 consecutive days or on more than
2 occasions during an 8 week period AND doesn’t
produce a medical certificate – not required to pay
–
Issued and signed by a medical practitioner or person
certified to diagnose patients and registered with a
professional council
–
–
Traditional Health Practitioner’s Bill
Not reasonably practicable to obtain certificate - can’t
withhold payment unless assist employee in obtaining
certificate
24
Basic Conditions of
Employment Act

Maternity Leave
–
Entitled to at least 4 consecutive months
–
Commence leave 4 weeks before expected date of
birth unless otherwise agreed
–
Cannot work for 6 weeks after birth unless certified fit
to do so
–
Entitled to 6 weeks if miscarriage during 3rd trimester
or stillborn child
–
Employee to notify employer in writing of dates
25
Basic Conditions of
Employment Act

Maternity Leave
–
Not required to pay employee for maternity leave
unless policy of doing so
–
Policy may provide for payment of 60% of normal
salary
–
Employee entitled to claim remaining 40% from the
Unemployment Insurance Fund
–
Total cannot amount to more than 100% of normal
salary
–
Protection of employees before and after child birth
26
Basic Conditions of
Employment Act

Family Responsibility Leave
–
–
Only applies to those employed for more than
4 months who work more than 4 days per week
Entitled to 3 days’ paid leave in the event that:

Employee’s child is born

Employee’s child is sick

Employee’s spouse, life partner, parent,
grandparent, child, grandchild or sibling dies
27
Basic Conditions of
Employment Act

Particulars of employment and remuneration
–
Only applies if work more than 24 hours per month
–
Employer to provide employee with certain
information in writing – see p10 of handbook
–
If information changes, employee to be provided with
copy of revised document
–
Employers not permitted unilaterally to change terms
and conditions – must consult
28
Basic Conditions of
Employment Act

Particulars of employment and remuneration
–
Statement of employees rights in prescribed form to
be displayed at workplace
–
Written particulars to be kept by employer for 3 years
post termination
–
Payment of remuneration by way of cheque, cash or
direct deposit
–
Employer obliged to give certain information when
paying an employee – see p11-12 of handbook
29
Basic Conditions of
Employment Act

Deductions
–
Only by written agreement or where permitted by law, court order
or arbitration award
–
Deduction for loss or damage suffered by employer if:
–

Employee’s fault and during course of employment

Opportunity to show why deductions should not be made

Total amount of debt does not exceed actual amount of
damage

Total deductions do not exceed ¼ of remuneration
Debt to be specified by employer in separate agreement
30
Basic Conditions of
Employment Act

Termination of employment
–
Only applies if work more than 24 hours per month
–
Notice of termination of not less than:

1 week if employed for 6 months or less

2 weeks if employed for between 6 months and
1 year

4 weeks if employed for 1 year or more or if a
domestic or farm worker employed for more than
6 months
31
Basic Conditions of
Employment Act

Termination of employment
–
–
–
Notice to be given in writing
Employer can’t give notice during any period of
leave
Employer can pay employee the remuneration he
would have received had he worked in lieu of
notice
32
Basic Conditions of
Employment Act

Termination of employment
–
Pay for any annual leave accrued and not taken and
for any paid time off not taken
–
Dismissal for operational requirements: severance
pay of at least 1 week for each completed year of
service
–
No severance pay if refuses to accept reasonable
alternative offer of employment
–
Certificate of service – see p13 of handbook
33
The Labour Relations Act

Primary Objects – see p 14 of handbook

Employees v Independent Contractors
–
Independent contractors are not employees – do not
enjoy the protections afforded by labour legislation
–
Relationship with independent contractors - purely
contractual
–
Substance over form of the contract
34
The Labour Relations Act

Employees v Independent Contractors Common Law
–
Control Test: extent to which work controlled by the
employer
–
Organisation Test: part and parcel of the organisation?
–
Dominant Impression Test: relationship and contract as
a whole
–
Economic Test: who profits from the work done
–
Case law - see p16 of the handbook
35
The Labour Relations Act

Employees v Independent Contractors Definition of an “Employee”
–
Any person, excluding an independent contractor,
who works for another person or for the state and
who receives or is entitled to receive any
remuneration
–
Any person who in any manner assists in the carrying
on or conducting the business of an employer
36
The Labour Relations Act

Employees v Independent Contractors - s200A of
the LRA and s83A of the BCEA
–
–
–
–
Burden is on the individual to prove that he is an employee
Rebuttable presumption – if triggered shifts the burden of
proving that an individual is not an employee to the
employer
The presumption is activated if any one of the listed factors
is present
Factors – see p16-17 of the handbook
37
The Labour Relations Act

Employees v Independent Contractors - s200A of
the LRA and 83A of the BCEA
–
–
Does not apply to persons earning in excess of
R149 736 per annum – onus on the individual to
prove he is an employee
Procedural rather than substantive change – only
modifies the burden of proof
38
The Labour Relations Act

Employees v Independent Contractors
–
Legal Principles – Independent Contracting

Not protected by the labour legislation

Relationship is governed by contract


Pacta sunt servanda – the content of the contract
is the determining factor
Termination – determined exclusively by
provisions of the contract
39
The Labour Relations Act

Employees v Independent Contractors
–
–
Legal Principles – Employees

Protected by labour legislation

Termination must be on statutorily recognised
ground – misconduct, incapacity or operational
requirements

Substantively and procedurally fair
Tax Implications – see p18 of handbook
40
The Labour Relations Act

Dismissal
–
Right not to be unfairly dismissed
–
Substantive and procedural fairness
–
Substantive – only 3 statutorily recognised grounds

Misconduct

Incapacity (poor work performance, ill health or
injury and possibly incompatibility)

Operational requirements (retrenchment)
41
The Labour Relations Act

Dismissal
–
Procedural fairness – depends on the reason
–
Employer bears the onus of showing dismissal was
substantively and procedurally fair
–
Schedule 8 to the LRA: Code of Good Practice:
Dismissal (“the Code”) sets out guidelines
42
The Labour Relations Act

Dismissal – Section 186 - Meaning
–
Failure to renew a fixed term contract or renewal on
less favourable terms where there is a reasonable
expectation of renewal
–
Refusal to allow an employee to resume work after
maternity leave
–
Selective re-employment after dismissal of a group of
employees for the same/similar reasons
43
The Labour Relations Act

Dismissal - Section 186 - Meaning
–
Termination by the employee because continued
employment was intolerable
–
Termination by the employee because of substantially
less favourable terms and conditions following a
transfer
44
The Labour Relations Act

Dismissal - Misconduct
–
Substantive fairness



On a balance of probabilities the employee
committed the misconduct
Dismissal must be the appropriate sanction – all
circumstances
Misconduct must be so serious that it renders the
continued employment relationship intolerable
45
The Labour Relations Act

Dismissal - Misconduct
–
Substantive fairness – Item 7 of the Code

Did the employee contravene a rule or standard
regulating conduct in the workplace?

Was the employee aware or could he reasonably be
expected to have been aware of the rule or standard?

Has the rule or standard been consistently by the
employer?

Is dismissal the appropriate sanction in all the
circumstances?
46
The Labour Relations Act

Dismissal - Misconduct
–
Procedural fairness



Employee made aware of the allegations and given
proper opportunity to state case in response
Doesn’t have to be formal disciplinary enquiry or “mini
trial” - natural justice must be observed
Case law - see p21 of the handbook
47
The Labour Relations Act

Dismissal - Misconduct
–
Procedural fairness - Item 4(1) of the Code

Conduct an investigation to determine if there are
grounds for dismissal – does not have to be a
formal enquiry

Notify the employee of the allegations

Allow the employee an opportunity to state a case
in response
48
The Labour Relations Act

Dismissal - Misconduct
–
Procedural fairness - Item 4(1) of the Code


Give the employee reasonable time to prepare and
allow the assistance of a fellow employee or trade
union representative
Communicate the decision – preferably written
notification
–
Written disciplinary codes - guideline only
–
Case law - see p21 of the handbook
49
The Labour Relations Act

Dismissal - Misconduct
–
Other guidelines contained in the Code

Only acts of misconduct that are sufficiently
serious or repeated are dismissible offences

Discipline should be progressive

Not sufficient to simply give notice of termination
in terms of contract where employee has
committed misconduct
50
The Labour Relations Act

Dismissal - Misconduct
–
Other guidelines contained in the Code

Fairness judged on a case by case basis – the
nature of the relationship, aggravating and/or
mitigating circumstances play a role

Employers should adopt written disciplinary codes

An employee should be given the reason for his
dismissal and reminded of his rights to refer the
matter to the CCMA
51
The Labour Relations Act

Dismissal – Incapacity

Poor Work Performance
–
Fail to meet the required performance standard?
–
Aware of the required performance standard (could
reasonably have been expected to be aware)?
–
Fair opportunity to meet required performance
standard?
–
Is dismissal the appropriate sanction?
52
The Labour Relations Act

Dismissal – Incapacity

Poor Work Performance
–
“No fault” dismissal – sympathetic approach
–
Employer must:

Inform employee timeously of the deficiency in
performance

Give the employee guidance and instruction;

Give the employee a reasonable opportunity to
improve

Consider alternatives to dismissal
53
The Labour Relations Act

Dismissal – Incapacity

Poor Work Performance
–
Tenured employees

Should not be dismissed unless they have been
given evaluation, instruction, training, guidance or
counseling

Dismissal – last resort

Investigate reason for the poor performance
54
The Labour Relations Act

Dismissal - Incapacity

Poor Work Performance
–
Must be a reasonable standard in existence
–
Objective proof that employee performing below required
standard
–
Senior employees

Higher standard of performance expected

Requirements re training, counseling and guidance not
applied as stringently – able to assess performance and
take remedial action independently
55
The Labour Relations Act

Dismissal – Incapacity

Poor Work Performance
–
Is dismissal appropriate?

Employee’s position

Standard of work required

Degree or seriousness of failure to perform

Length of service

Past record of performance

Additional training, guidance and instruction?

Transfer?
56
The Labour Relations Act

Dismissal – Incapacity

Poor Work Performance
–
Probationary employees – Item 8 of the Code



Purpose – opportunity to evaluate the employee’s
performance
Period must be reasonable – nature of the job and the
time it takes to determine the employee’s suitability
Employee’s performance has to be assessed - give
reasonable evaluation, training, guidance or
counseling
57
The Labour Relations Act

Dismissal - Incapacity

Poor Work Performance
–
Probationary employees – Item 8 of the Code

Advise the employee of aspects in which he is falling below
the required standard

May extend the probation or dismiss after allowing an
opportunity to make representations

Period of extension - purpose the employer intends to
achieve

Reason for dismissal may be less compelling but a proper
procedure must be followed
58
The Labour Relations Act

Dismissal – Incapacity

Ill Health or Injury
–
–
–
Temporary or permanent?
Likely to be absent for an unreasonably long time –
investigate all alternatives short of dismissal
Relevant factors

Nature of the job

Period of absence

Seriousness of ill health or injury

Possibility of securing a temporary replacement
59
The Labour Relations Act

Dismissal – Incapacity

Ill Health or Injury
–
–
Permanent incapacity – ascertain possibility of

securing alternative employment

adapting the duties or work circumstances to
accommodate the employee
Procedure – consult, allow opportunity to state case
and be represented by fellow employee or trade union
representative
60
The Labour Relations Act

Dismissal – Incapacity

Ill Health or Injury
–
Dismissal fair?

Employee capable of performing the work?

If not, extent to which he is able to perform

Extent to which work circumstances or duties can be
adapted to accommodate employee

Availability of suitable alternative work
61
The Labour Relations Act

Dismissal - Incapacity

Ill Health or Injury
–
HIV/AIDS Code

Management of HIV/AIDS in the workplace

Measures to reduce the impact
–
Policies
–
Programmes
–
Counseling
–
Employee assistance
62
The Labour Relations Act

Dismissal – Incapacity

Ill Health or Injury
–
HIV/AIDS Code

May not be required to undergo HIV testing unless LC
determines it is justified – must approach LC for
authorisation

Voluntary testing permitted if initiated by the employee only

Conditions
–
Presence of a health care worker
–
Informed consent and counseling
–
Strict confidentiality
63
The Labour Relations Act

Dismissal – Incapacity

Ill Health or Injury
–
HIV/AIDS Code

May not dismiss on the basis of HIV/AIDS status –
unfair discrimination and automatically unfair

If HIV/AIDS causes an inability to work can dismiss for
incapacity

Additional obligations on the employer to maintain
confidentiality
64
The Labour Relations Act

Dismissal - Operational Requirements
–
Economic, technological, structural or similar needs
–
“No fault” dismissals
–
Fair reason – a “commercial rationale” which is coherent
and justifiable and does not conceal some ulterior motive
–
Courts reluctant to judge the commercial rationale of an
employer’s decision to retrench
–
Clear articulation of the commercial rationale essential
65
The Labour Relations Act

Dismissal - Operational Requirements
–
–
Fair Procedure

Disclosure of information

Consultation
Information to be disclosed in writing

Reasons for the proposed dismissals

Alternatives that were considered before proposing the
dismissals and reasons for rejecting them
66
The Labour Relations Act

Dismissal - Operational Requirements
–
Information to be disclosed in writing


The number of employees –
–
Employed
–
Retrenched in the last 12 months
–
Likely to be affected and the job categories in which
they are employed
The proposed method for selecting which employees to
dismiss
67
The Labour Relations Act

Dismissal - Operational Requirements
–
Information to be disclosed in writing

The time when the dismissals are likely to take effect

The proposed severance pay

Any assistance the employer proposes to offer

The possibility of future re-employment
68
The Labour Relations Act

Dismissal - Operational Requirements
–
Consultation – four key issues

Timing of the consultation

With whom to consult

Content and scope of the consultation process

Purpose of the consultation
69
The Labour Relations Act

Dismissal - Operational Requirements
–
–
Timing of the consultation

As soon as contemplate retrenchment

Before final decisions are made

Written invitation to consult

Case law – see p35 of handbook
Whom to consult

Trade union whose members are likely to be affected by the
proposed dismissals

Employees likely to be affected who are non union members
- individually or as a group or with their nominated
representative
70
The Labour Relations Act

Dismissal - Operational Requirements
–
Attempt to reach consensus on:

Appropriate measures to:
–
Avoid the dismissals
–
Minimise the number of dismissals
–
Change the timing of the dismissals
–
Mitigate the adverse effects

The method for selecting employees to be dismissed

Severance pay
71
The Labour Relations Act

Dismissal - Operational Requirements
–
–
Purpose of the consultation

Attempt to reach consensus on each of the issues

Allow employees to make representations

Consider and respond to representations - final decision
making power rests with the employer
Selection criteria must be:

Agreed

Fair and objective

Case law – see p35 of the handbook
72
The Labour Relations Act

Dismissal - Operational Requirements
–
Severance pay



Minimum 1 week’s remuneration for each completed year of
service
Informed by
–
The commercial rationale for the retrenchments
–
What the company is able to afford
–
Published policies and past practice
–
Collective agreements
Unreasonably refuses an alternative offer of employment - not
entitled to severance pay
73
The Labour Relations Act

Automatically Unfair Dismissals
–
The employer acts contrary to section 5 of the LRA
(freedom of association)
–
Participation in a protected strike
–
Refusal to do work normally done by an employee who is
on a protected strike UNLESS the work is necessary to
prevent danger to life, personal safety or health
–
To compel the employee to accept a demand in respect of
a matter of mutual interest
–
The employee’s pregnancy, intended pregnancy or any
reason related to the employee’s pregnancy
74
The Labour Relations Act

Automatically Unfair Dismissals
–
Unfair discrimination against the employee BUT note

Inherent requirement of the job

The normal or agreed retirement age
–
The employee exercised or indicated an intention to
exercise a right in terms of the LRA
–
A transfer or a reason related to a transfer of a business as
a going concern
–
A contravention of the PDA on account of the employee
having made a protected disclosure
75
The Labour Relations Act

Automatically Unfair Dismissals
–
–
Once it is proved that the dismissal is for one of the listed
reasons the employer can raise no defence
Maximum compensation – 24 months’ remuneration
–
Onus - on the employee to show that the reason for the
dismissal is an automatically unfair reason
–
Employer must then show on a balance of probabilities
that reason for dismissal is not an automatically unfair one.
Then show substantively and procedurally fair
76
The Labour Relations Act

Constructive Dismissal
–
An employee terminates a contract of employment
because the employer made continued employment
intolerable for the employee
–
Have to show:

Resigned

Intolerable to remain in employment

Intolerable circumstances of the employer’s making

Reason for resignation causally linked to the
intolerable circumstances created by the employer’s
conduct
77
The Labour Relations Act

Constructive Dismissal
–
Employer’s conduct must be unfair or wrongful
–
Does not have to be intentional
–
–
–
Employee’s circumstances viewed in context to
establish whether resignation constitutes a
reasonable response to the employer’s conduct
Objective test
Once employee has proved constructive dismissal –
onus shift to employer to show conduct was fair
78
The Labour Relations Act

Failure to renew a fixed term contract
–
Can amount to dismissal if don’t renew or renew on less
favourable terms
–
Onus on employee - prove a reasonable expectation of renewal
–
Consider

Representations made by the employer

Provisions of the contract itself

Past practice of renewal; and

Purpose of the fixed term contract
–
Objective test
–
Case law – see p39-40 of the handbook
79
The Labour Relations Act

Unfair Labour Practices
–
Any unfair act or omission that arises between an
employer and an employee involving:

Unfair conduct by the employer relating to:
–
Promotion
–
Demotion
–
Probation
–
Training
–
The provision of benefits
80
The Labour Relations Act

Unfair Labour Practices
–
Any unfair act or omission that arises between an
employer and an employee involving:

Unfair suspension or any other disciplinary action short of
dismissal

Failure or refusal to reinstate or re-employee a former
employee in terms of an agreement

An occupational detriment, other than dismissal, in
contravention of the PDA on account of the employee
having made a protected disclosure in terms of that Act
81
The Labour Relations Act

Unfair Labour Practices
–
Is there an existing employment relationship?
–
Has a right has been infringed or is a right about to be
infringed?
–
Most important consideration - fairness
–
Unfair conduct v unfair discrimination
–
–
Definition of “benefits” problematic – haphazard approach
by the courts – see p 42 of the handbook
If remuneration were included it would affect the right to
strike about remuneration increases
82
The Labour Relations Act

Remedies for Unfair Dismissals
–
Reinstatement
–
Re-employment
–
–
Compensation – 12 months’ remuneration for an unfair
dismissal, 24 months’ remuneration for an automatically unfair
dismissal
Reinstatement or re-employment unless

Employee doesn’t wish to be reinstated

Continued employment relationship intolerable

Not reasonably practicable

Dismissal is only procedurally unfair
83
The Labour Relations Act

Remedies for Unfair Labour Practices
–
An arbitrator may determine the dispute on terms he
deems reasonable which may include ordering

Reinstatement

Re-employment

Compensation
–
Maximum compensation – 12 months’ remuneration
–
The remedy should aim to correct the unfair conduct
84
The Employment Equity Act

Overview and Application – see p 48 of the
handbook

The Prohibition of Unfair Discrimination
–
No person may unfairly discriminate, either directly or
indirectly, against an employee, in any employment
policy or practice on one or more grounds including
race, gender, sex, pregnancy, marital status, family
responsibility, ethnic or social origin, colour, sexual
orientation, age, disability, religion, HIV status,
conscience, belief, political opinion, culture, language
and birth
85
The Employment Equity Act

The Prohibition of Unfair Discrimination
–
–
–
Employment policy or practice is widely defined to
include almost every aspect of the employment
relationship
“Employee” includes applicants for employment –
recruitment and selection procedures cannot be
unfairly discriminatory
Harassment – expressly included as a form of unfair
discrimination and prohibited
86
The Employment Equity Act

The Prohibition of Unfair Discrimination
–
Differentiation?
–
Discrimination?
–

Differentiation that is unjustifiable, prejudicial or demeaning

Singled out for differential prejudicial treatment on some
unacceptable ground

Effect - not the intention of the perpetrator
Fair or unfair?

Objective justification or commercial rationale for the
differentiation? e.g. affirmative action or an inherent
requirement of the job
87
The Employment Equity Act

The Prohibition of Unfair Discrimination
–
The employee bears the onus of proving the discrimination
–
The employer bears the onus of proving that it was not unfair
–
Discrimination on one of the listed grounds is presumed to be
unfair
–
If discrimination is alleged on an unlisted ground, the
complainant must establish unfairness
–
–
Direct discrimination – adverse action taken against people
precisely because they possess one of the listed characteristics
Indirect discrimination – the employer imposes an apparently
neutral criterion on all employees but it has a discriminatory
effect on certain groups
88
The Employment Equity Act

The Liability of Employers
–
–
–
Discriminatory act perpetrated by an employee employer required to “consult all relevant parties”
Employer fails to take such steps - employee’s
contravention of the EEA will be attributed to the
employer unless the employer can show that it did “all
that was reasonably practicable” to ensure that the
employee would not contravene the provisions of the
EEA
Case law – see p50 of the handbook
89
The Employment Equity Act

Sexual Harassment
–
Code of Good Practice


Objective – eliminate sexual harassment in the workplace
Sexual harassment - unwanted conduct of a sexual nature
that violates the rights of an employee and constitutes a
barrier to equity in the workplace taking into account:
–
Whether the harassment is on the prohibited grounds
of sex and/or gender and/or sexual orientation
–
Whether the sexual conduct was unwelcome
–
The nature an extent of the sexual conduct and the
impact of the conduct on the employee
90
The Employment Equity Act

Sexual Harassment
–
Code of Good Practice

Includes physical contact, verbal innuendos, suggestions,
hints, comments with sexual overtones etc

Management must take active steps towards eliminating
sexual harassment by issuing policy statements and
procedures

Implement education and training programmes

Informal resolution or formal proceedings (incl. disciplinary
action)

A victim can refer a dispute to the CCMA for conciliation and
then to the LC for adjudication – maximum 24 month’s
remuneration as compensation
91
The Employment Equity Act


Medical Testing
–
Prohibited unless legislation permits it or it is justifiable in light of
medical facts, employment conditions, social policy, the fair
distribution of benefits or the inherent requirements of a job
–
HIV testing prohibit unless the Labour Court determines it is
justified or it is voluntary and anonymous
Psychological Testing
–
Prohibited unless test is scientifically valid and reliable, can be
applied fairly to all employees and is not biased against any
employee or group
92
The Employment Equity Act


Applicants for Employment
–
Identify requirements for the job and level of competency
required – interview accordingly
–
Avoid irrelevant questions that may be discriminatory
–
Give unsuccessful applicants reasons if requested
Unfair Discrimination Disputes
–
Must be referred to the CCMA within 6 months after the act or
omission that allegedly constitutes unfair discrimination
–
Conciliation
–
LC for adjudication unless the parties consent to arbitration by
the CCMA
93
The Employment Equity Act

Affirmative Action
–
–
–
Designated employer

Employs 50 or more employees; or

Has an annual turnover between R2 million and R25 million
Designated groups

Black people

Women

People with disabilities
Chinese people – see p55 of the handbook
94
The Employment Equity Act

Affirmative Action
–
Consult with employees
–
Conduct an analysis of employment practices, procedures and
the working environment to identify employment barriers
–
Draw up an employment equity plan – see p55-56 of the
handbook
–
Report to the DG of the Department of Labour on its progress in
implementing the plan – see p56-57 of the handbook
–
Analysis must include a profile of the workforce in each
occupational category and determine the level of under
representation of workers from designated groups in each
category
95
Compensation for Occupational
Injuries and Diseases Act


Overview
–
System of compensation for work related illness,
injury, disease or death
–
Tariff based on annual earning of employees
–
Employers relieved from liability for damages of
employees for work related illness, injury, disease or
death
Definition of Employee and Employer
–
See p60 of the handbook
96
Compensation for Occupational
Injuries and Diseases Act

Compensation for Injuries
–
Accident arising out of and in the course of an employee’s
employment and resulting in a personal injury
–
Generally excludes travel to and from work
–
Employee guilty of misconduct – no compensation unless:
–

Serious disablement

Employee dies and leaves a financial dependant
Case law - see p61 of the handbook
97
Compensation for Occupational
Injuries and Diseases Act

Compensation for Occupational Diseases
–
To qualify for compensation, the employee must show
the disease has arisen out of and in the course of
employment


If the disease is listed in Schedule 3 – presumed to
arise out of and in the course of employment
If not a disease listed in Schedule 3 - the employee
must show that the disease arose in the course of
employment
98
Compensation for Occupational
Injuries and Diseases Act

Section 35
–
No action for damages lies against the employer and
the employer cannot be held liable for compensation
–
Section 35 not a violation of s9 of the Constitution
–
Employees’ common law rights excluded
–
Case law – see p 62 of the handbook
99
Compensation for Occupational
Injuries and Diseases Act

Recovery of Damages and Compensation from
Third Parties
–
–
–
Employee can claim directly from a 3rd party in terms
of COIDA
Director General of the Department of Labour (“DG”)
may claim from the 3rd party after paying the
employee in terms of COIDA
Amount cannot exceed the amount that would be
payable under COIDA
100
Compensation for Occupational
Injuries and Diseases Act

Employers’ Obligations
–
Register with the compensation commissioner
–
Keep record of:
–
–

Earnings

Other prescribed particulars of employees
DG assesses and calculates percentage of employee’s
earnings to be paid to the commissioner annually
Failure to register is a criminal offence but does not
prejudice an employee’s claim for compensation
101
Compensation for Occupational
Injuries and Diseases Act

Calculation of Benefits
–
Based on employees’ earnings at the time of the
accident or contracting of the disease
–
Includes value of food, accommodation etc given to
the employee
–
Formula contained in Schedule 4 of COIDA
–
Temporary v Permanent Disability
–
Medical attendant allowance
–
Survivor and funeral benefits
102
Compensation for Occupational
Injuries and Diseases Act

Employer Negligence
–
Employee may claim increased compensation from the Fund
–
Caused by patent defect in the condition of the premises, place
of employment, equipment, material or machinery which the
employer has failed to remedy
–
Application must be lodged within 24 months – may be extended
–
DG has discretion as to the amount to be paid
–
Cannot exceed the amount of pecuniary loss which the
employee has or can reasonably be expected to suffer as a
direct result of the accident or occupational disease
103
Compensation for Occupational
Injuries and Diseases Act


Procedure
–
Give employer written or verbal notice of an accident as soon as
possible after it happens
–
Employer must report the accident to the compensation
commissioner within 7 days of receiving notice of the accident
–
Failure to report - fine not exceeding the value of the
compensation
–
DG - inquiry to decide validity of the claim and the extent of
liability
Prescription
–
Lodge claim within 12 months of the accident or death
104
The Occupational Health and
Safety Act

Duties of the Employer
–
Generally: To provide and maintain, as far as is reasonably
practicable, a working environment that is safe and without risks
to health
–
Certain Specific Duties e.g.

Provide and maintain systems of work, plant and machinery
that, as far as is reasonably practicable, are safe and
without risks to health

Take such steps as may be reasonably practicable to
eliminate or mitigate any hazard or potential hazard to the
safety or health of employees, before resorting to personal
protective equipment
105
The Occupational Health and
Safety Act

Duties of the Employee
–
Generally: To act in a manner that is conducive to safety
–
Certain Specific Duties e.g.

Take reasonable care for the health and safety of himself
and of other persons who may be affected by his acts or
omissions

Carry out any lawful order given to him, and obey the health
and safety rules and procedures laid down by his employer
or by anyone authorized thereto by his employer, in the
interest of health or safety
106
The Occupational Health and
Safety Act

Non-compliance
–
Maximum penalty for negligently causing an injury - R100 000
fine or 2 years imprisonment or both
–
Contravention of a provision - R50 000 fine or 12 months
imprisonment or both
107
The Protected Disclosures Act
–
‘Whistleblowers Act’
–
Designed to encourage a culture of whistle-blowing in the
workplace
–
Section 3 - No employee may be subjected to an occupational
detriment by his employer as a result of having made a protected
disclosure
–
Elements

Disclosure

Protected

Occupational Detriment
108
The Protected Disclosures Act

Disclosure
–
Disclosure of information made by an employee regarding the
conduct of an employer which shows or tends to show:

Commission of a criminal offence

Failure to comply with a legal obligation

Miscarriage of justice

Danger to the health and safety of an individual

Damage to the environment

Unfair discrimination in terms of the PEPUDA

The deliberate concealment of any of the above
109
The Protected Disclosures Act

Protected Disclosure
–
A disclosure made to:

A legal advisor

An employer

A member of the Cabinet or of the executive council of a
province

The Public Protector or the Auditor-General

Any other body or person in terms of the PDA
110
The Protected Disclosures Act

Occupational Detriment
–
Disciplinary action
–
Dismissed, suspended, demoted, harassed or intimidated
–
Transferred against the employee’s will
–
Refused transfer or promotion
–
Subjected to a term and condition of employment or
retirement which is altered to the employee’s disadvantage
111
The Protected Disclosures Act

Occupational Detriment
–
Refused a reference or being provided with an adverse
reference from the employer
–
Denied appointment
–
Threatened with any of the above actions
–
Otherwise adversely affected in respect of his
employment, profession or office, including employment
opportunities and work security
112
The Protected Disclosures Act

Protected disclosures made to the employer
–
Must be made:

In good faith

Substantially in accordance with any procedures
(prescribed or authorised) by the employer for
reporting or otherwise remedying the impropriety

If there is no procedure, directly to the employer
113
The Protected Disclosures Act

General Protected Disclosures
–
Made in good faith
–
The disclosed information is substantially true
–
The disclosure is not made for personal gain
114
The Protected Disclosures Act

General Protected Disclosures
–
Protected if

The employee has reason to believe that:
–
He will be subjected to an occupational detriment if he
or she makes a disclosure to his or her employer
–
It is likely that evidence relating to the impropriety will
be concealed or destroyed if he or she makes the
disclosure to his or her employer
115
The Protected Disclosures Act

General Protected Disclosures
–
Protected if

The employee has previously made a disclosure of
substantially the same information to his or her employer; or
the Public Protector, Auditor General or any person or body
referred to in terms of the PDA - no action was taken within
a reasonable period after the disclosure

The impropriety is of an exceptionally serious nature
AND

The disclosure is reasonable
116
The Protected Disclosures Act

Reasonableness
–
Identity of the person to whom the disclosure is made
–
Seriousness of the impropriety
–
Whether the impropriety is continuing or is likely to
occur in the future
–
Whether the disclosure is made in breach of a duty of
confidentiality of the employer towards any other
person
117
The Protected Disclosures Act

Reasonableness
–
Whether any action which the employer or the person or
body to whom the disclosure was made was taken, or
might reasonably be expected to have taken, as a result of
the previous disclosure
–
Whether in making the disclosure to the employer the
employee complied with any procedure which was
authorised by the employer
–
The public interest
118
The Protected Disclosures Act

Remedies
–
An occupational detriment constitutes an unfair labour
practice
–
May be awarded compensation up to the equivalent of 12
months remuneration
–
If dismissed as a result of having made a protected
disclosure - automatically unfair
–
May be awarded compensation up to the equivalent of 24
months remuneration
119
The Unemployment Insurance
Act
–
Provides for payment of unemployment benefits in respect of
temporary unemployment arising from the termination of the
employee’s services, illness, maternity and adoption
–
Entitles dependants of contributing employees to benefits upon
the death of the employee
–
Establishes the UIF
–
Employer and employee contribute equally to the UIF and
benefits owing to an employee are deducted from the UIF
–
Employer must register with the Unemployment Commissioner
or SARS
–
Offence under UIA: fine or imprisonment or both
120
Immigration Law

Immigration Act
–
Regulates right of foreign nationals to live and work in
RSA
–
Permanent Residence

All rights, privileges, duties and obligations of a citizen
except those granted to citizens only by the
Constitution

May be obtained directly or on other grounds
121
Immigration Law

Section 26 – Direct Residence Permit
–

Section 27 – Residence on Other Grounds
–

See p71 of the handbook
See p71-72 of the handbook
Temporary Residence
–
Foreigners who come into the country for a specific
period of time
122
Immigration Law

Work permits:
–
General Quota Work Permit
–
General Work Permit
–
Exceptional Skills or Qualification Permit
–
Intra-Company Transfer Work Permit
–
Other Temporary Residence Permits
–
See p72 of the handbook
123
The Prevention and Combating
of Corrupt Activities Act

Duty to report falls on:
–
A person in a position of authority
–
Who knows or ought reasonably to have known or suspected;
–
That any other person has committed an offence as defined in
the PCCA – see p74 of the handbook
–
Involving an amount of R100 000 or more

Report must be made to a police official

Failure to report is an offence
124