Human Capital

Manpower planning
• Top-down process.
• The strategic plan will detemine what skills are needed to achieve the goals of the business.

Number of employees Range of skills Timeframe of

needed needed employment needs

Job analysis Tasks and responsibilities associated with each job.

Job description Job title, summary of the job, duties and working conditions and the degree of
supervision.
Job speci cation Quali cations, skills and experience needed to do the job.

Skills gap Di erence between skills needed and skills available.

Procurement Process
1. Recruitment
• Process of attracting the most competent sta .

Internal: transferring an existing employee to a External: looking outside the business.

new position or promoting them. 1. Advertuse through an employment agency.
1. Invite existing employees to apply for the 2. Advertise in newspaper, journals or trade
position. journals.
2. Search internal les or post to intranet. 3. Approach schools, universities or colleges.
3. Hybrid method: internal sta recommend an 4. CVs of casual applicants or ‘walk-ins’ are
outsider. considered.
5. Employees can be head-hunted.

Advantages Advantages
Morale improves New ideas and skills

Opportunity to employ a rmative action candidates

It is cost-e ective
If head-hunted, they can provide insight into competitors
Past performance and attitude is known
No in ghting

2. Selection
• Identifying the most competent sta .

Business receives application forms, CVs and other relevant documentation. This is checked to
make sure everything has been received.

All applications and CVs are evaluated to see who meets the prescribed criteria. Candidates who
don’t meet the criteria are informed.
ff
fi
fi
fi
ff
fi
ffi
ff
ff
ff
 A shortlist is compiled of candidates for the rst round of screening. Each applicant is compared
to a predetermined list of criteria.

A background and reference check is done. A predetermined list of questions veri es an

applicants references and ensures fairness.

Interviews are conducted. Should be done with a panel and a list of predetermined questions. The
purpose is to assess the applicant and their qualities.

Candidates can be asked to undergo certain tests.

Work sample: measures the candidates ability to do their job.
Psychometric test: measures the candidates mental ability and personality.
Medical exam: conducted if certain health requirements are an inherent requirement for the job.

In order of preference, candidates are ranked and the highest on the list is o ered the job. If they
decline, the next person on the list is o ered the job.

Once the employment o er is accepted, an employment contract is signed.

3. Placement
• Usually placed in the position applied for.
• If it emerges that the employee has a special skill that makes them suitable for a di erent position, they should
be put in that position.
• To move an employee to another position requires the employment contract being re-negotiated.

4. Induction
• NOT THE SAME AS TRAINING!
• It is training that is done with ALL NEW employees to get them accustomed to the business.
• There is no “one-size- ts-all” recipe for an induction programme but there are a few things that should always
be included:
1. Written copy of policies and procedures.
2. Organogram or organisational chart.
3. A face-to-face introduction with sta members in department and management.
4. A tour of facilities.
5. Precise instructions outlining how new sta should perform certain tasks.
6. A mentor or buddy system.

Advantages of a good induction programme:

Helps reduce stress and anxiety. New employees become mindful of the business culture.

Ensures new sta start with the right information. Retention of sta is higher.

Prevents wasting time and resources.

ff
ff
fi
ff
ff
ff
ff
fi
ff
ff
fi
5. Remuneration and employee benefits
• Rewarding employees for their hard work.

Salary Permanent or temporary workers may earn salaries. A xed amount that is paid once a month on a
predetermined date.

Wages Paid on a daily or weekly basis. Can be a xed sum, calculated on the basis of the number of hours
worked, or a piece rate.

Commission Motivates employees to deliver more. Employees receive a % of sales or output.

Bonus An additional sum of money to reward hard work of employees.

13th cheque A guaranteed bonus. An employee’s annual salary is divided into 13 instead of 12 and two amounts are paid
out in December.

• Money may NOT be deducted from an employees salary, unless:

1. It is a voluntary deduction.
2. It is a legal requirement (PAYE, UIF etc).
• There are two methods of structuring an employees salary:

Cost to Company Cost plus bene ts

• The employer pays an employee a salary with • The employer will pay an employee a basic
no additional bene ts. salary with additional bene ts.
• The employee is able to structure their salary • These bene ts can include pension, medical
and payments accordingly. aid, meals, housing etc.

6. Training and skills development

Training Skills Development
Ensuring that employees have the speci c skills Targets a broader range of skills or attitudes
needed to perform the job. that are not job speci c.

• The world is changing very quickly, no business can hope for success without training or developing the skills
of employees.
• Some businesses don’t see the value in training and skills development because there is no guarantee that the
employees will improve, and it takes employees away from their job when training occurs.
• The steps for developing and implementing an e ective training and skills development programme:

Identify the skills gap

Consider training
resources available

Design the training

programme

Implement the
programme

Evaluate the success of

the programme
fi
fi
fi
fi
fi
fi
fi
ff
fi
• The methods of training and skills development are:
1. On the job training: an experienced employee mentors another.
2. Classroom training: a lecture is given.
3. E-learning: electronic learning.
4. A workshop.
5. Self-study.
6. A mentor or buddy system.
7. A learnership: allows an employee to work in a buiness while studying towards a quali cation.
8. A blended-approach.

7. Employee evaluation
• Performance appraisals are used to evaluate an employee’s performance.

A planning tool The performance targets are agreed upon by the employee and employer.

An evaluation tool At the next appraisal, the performance of the employee is evaluated by the employee and the
manager. Discrepancies are discussed.

A feedback tool If targets aren’t met, reasons are discussed. The employer and employee each have an opportunity
to raise concerns in a formal meeting. Personal Improvement Plans (PIPs) are outlined to improve
performance.

8. Retention
• The business does not want employees to leave the business frequently.
• There are many reasons for an employee to leave:

An opportunity No job Travelling time is

Health reasons
for a better salary satisfaction unreasonable

Employee is
A spouse is Lack of opportunity
unhappy with how
moving to grow and develop
they are treated

• Consequences of high employee turnover:

1. Reduced productivity levels.
2. Additional work burden placed on the remaining employees.
3. Low morale when employees are aware of so many vacancies.
4. Negative public perception of the business.
5. More money and time needed to invest in training new sta .
• An exit interview is conducted when employees leave and it often comes out if the business is doing something
wrong, the HC function can use this information to improve and ensure sta retention.

Labour legislation
Constitution 108 of 1996 as amended
• It is the fundamental law of South Africa and ensuring basic human rights for all citizens.
• The Bill of Rights is covered in chapter 5 of the Constitution.
The right to just administrative action. The right to housing, food, water, security and health care.

Freedom of movement in and out of the country. Children have special rights.

Political rights. The right to basic education.

ff
ff
fi
The right to not be discriminated against. Freedom of association.

Freedom of trade, occupation and profession. The right to assemble peacefully and demonstrate and
protest.

The right to live in a safe environment.

The Limitation Clause:

· The right not to be discriminated against is limited since PDIs should receive preferential treatment in
the workplace.
· This could mean that the white population might be at a disadvantage when applying for certain jobs.
This is done to redress economic imbalances of the past.

The labour relations Act 66 of 1995 as amended (LRA)

• The main aims of the LRA:

Promote economic development, labour peace,

Enforce the fundamental rights relating to
social justice and democracy in the workplace
labour issues that are guaranteed in the
by providing a framework for collective
Constitution.
bargaining to solve labour disputes.

• Applies to ALL employers and employees in South Africa except:

1. Members of the South African Defence Force.
2. National Intelligence Agency.
3. The South African Secret Service.
• If the business doesn’t comply with the LRA it can be referred to the CCMA and/or Department of Labour.
Implications of the LRA

Positive Negative

International labour standards are applied in South Africa. Trade Unions have a lot of power in South Africa and they
often forget their original duty.

It ensures the basic rights of employers and employees are All businesses (regardless of size) have to comply with the
protected. Act and it can be tough for small businesses.

It provides guidelines on how to deal with labour disputes.

It reduces uncertainty.

Disciplinary procedures and grievance procedures

• The purpose of discipline is to correct behaviour in the workplace, not to punish or embarass employees.
• Not all infringements are equally serious.
• Progressive discipline: the “softest” form of discipline is implemented rst and if it doesn’t work then more
serious disciplinary action can be taken.
• Coaching and counseling: the manage determines what can be done to correct behaviour. A plan of action is
followed to ensure the employee does what is expected.
• Correction: more formal approach that includes verbal and written warnings, suspension, demotion or even
dismissal.
• Disciplinary Policy: provides guidelines and informs the employee on what is acceptable behaviour and what
the consequences are for unacceptable behaviour.
fi
 • Grievance Procedure: allows the employee an opportunity to resolve a grievance related to their employment
by communicating through a predetermined procedure and structure.

Substantive and Procedural fairness

• There are three reasons to dismiss an employee.

Incapacity Misconduct Operational reasons

Incapacity
• Inability to meet the required work standards.
• It can be split into two categories:
1. Poor work performance.
- Incomplete or inaccurate work, work of a poor standard etc.
2. Poor health.
- Health situations that prevent the employee from meeting the required standards.

Substantive fairness for poor work performance: Substantive fairness for poor health:
1. The employer must prove that the work 1. The employer must try modify or adapt the
standard was fair, the employee knew about it employee’s tasks or try help them to meet the
and the employee was given an opportunity to required standards.
improve. 2. Extended unpaid leave should be considered if
2. Demotion or transfer should be considered this will help the employee recover and return to
before dismissal. work.
3. A transfer should be considered rst.

Misconduct
• Some o enses are worse than others and it should be stated in the Disciplinary Code of the business.
• Forms of misconduct:

Abuse or unauthorised Being under the Bribery and Fighting Failure to Illegal
possession of in uence of alcohol corruption adhere to industrial
company property or drugs rules action

Substantive fairness for misconduct:

1. The employee broke a rule.
2. The rule was reasonable and valid.
3. The employee knew about the rule or should
have known.
4. The rule was consistently applied.
5. The appropriate sanction was implemented.
fl
ff
fi
 Procedural fairness for misconduct and incapacity:
1. The complaint should be put in writing and fully investigated, the investigation should be recorded in writing
as well.
2. The accused should be advised of the full nature and details of the charge(s) against them and give them full
access to all written documents.
3. The date, time and venue of the hearing should be given to the accused in writing.
4. The accused should be given reasonable time to prepare for the hearing.
5. The accused is entitled to an interpreter if they aren’t comfortable with the language the hearing is in.
6. The complaintant presents their case by giving evidence and calling witnesses. The accused may cross-
examine the witnesses.
7. The accused presents their case by giving evidence and calling witnesses. The complaintant may cross-
examine the witnesses.
8. The Chairperson decides on guilt or innocence based on the evidence presented (only looking at facts).
9. The Chairperson decides on a verdict and it is con rmed in writing.
10. The Chairperson will advise the accused of their right to appeal.

Operational reasons
• AKA retrenchment of workers.
• There are so many reasons for workers to be retrenched.

Substantive fairness for retrenchment:

1. Restructuring of departments or the business.
2. Economic reasons such as cost reduction.
3. Technical reasons such as automation.

Procedural fairness for retrenchment:

The business needs to justify the following:
1. Possible steps taken to prevent or minimise the retrenchments.
2. Reasons for retrenchments and if alternatives were considered.
3. How much consultation with the a ected employees and their representatives.
4. Criteria used to identify employees for retrenchment.
5. Notice periods given to employees a ected by the retrenchment process.
6. O ers of severance pay.
7. Whether o ers of re-employment may occur at a later stage.

Unfair treatment and unfair dismissal

• If there is a dispute, it must be taken to the CCMA.
• Unfair treatment includes the following:
1. Unfair allocation of bene ts.
2. Unreasonably long probation periods.
3. Unfair discrimation.
4. Unfair suspension or unfairly subjecting an employee to any form of disciplinary action.
5. Failing to re-employ an employee after such a promise was made.
6. Treating an employee unfairly after whistle-blowing.
7. Trying to prevent an employee from belonging to a trade union.
• Unfair dismissal includes the following:
1. The employee is dismissed because they participated in the activities of a trade union or WPF.
2. The employee is dismissed for partaking in a protected strike.
ff
ff
fi
ff
ff
fi
 3. The employee is dismissed relating to pregnancy.
4. The employer ends the contract without a proper notice period.
5. The employee is dismissed for arbitrary reasons.
6. Constructive dismissal: when the employer makes the working conditions unbearable so the employee
will quit.
• There are three remedies for unfair dismissal:

Re-employment Compensation A combination

• Sometimes re-employment is not an option:

1. If the dismissal was only procedurally unfair.
2. The employee doesn’t want to be re-employed.
3. The working relationship is intolerable.
4. It is impractical for the employer to re-employ the worker.

Industrial relations, collective bargaining and industrial action

• Industrial relations: the relationship between the employer, the employees and other institutions such as
government. The aim is to ensure industrial peace by ensuring high worker morale and a functional workplace.
• Collective bargaining: the process that takes place when the employer and trade union negotiate terms of
employment. Issues that can be discussed are:
1. Employment and working conditions.
2. Salaries and wages, overtime pay and other bene ts.
3. Working conditions.
4. Issues relating to annual leave and sick leave.
• Industrial action: the steps that workers take to enforce their demands if the collective bargaining process
fails to meet their demands.

Types of industrial action

Strike Two or more employees refuse to work due to a shared, work-related purpose.

Go-slow Workers still work but decrease their rate of productivity.

Workers do no more or no less than the minimum requirements described by the rules of a
Work-to-rule
workplace.

Intermittent strike Takes place when employees stop and start the same strike.

Overtime bans When employees refuse to work any overtime.

Where striking workers demonstrate in public outside the workplace. Must meet the
Picketing
requirements stated in the Code of Good Practice on Picketing.

Secondary/sympathy strike When employees strike in support of another strike.

Most frequent reasons for industrial action

1. Remuneration issues
2. To have a Trade Union recognised
3. If the employer made unilateral changes to working conditions

Protected vs unprotected strikes

• The following procedure should be followed to have a strike protected:
fi
 1. The issue must be referred to the CCMA, a Bargaining council or Statutory council in writing.
2. The CCMA or council has 30 days during which they must aim to resolve the issue.
3. If it isn’t possible to resolve the issue, a certi cate should be issued stating this is the case.
4. The private sector gets 48 hours notice and the public sector gets 7 days.

If an employer changes working conditions unilaterally, the employees

can strike immediately.

Benefits of a protected strike (employee’s perspective)

1. The employees have security of knowing that they cannot be dismissed.
2. Employers cannot get a court interdict to stop the strike.
3. Employers are not allowed to seek damages.
4. Employers have to continue providing employee bene ts.

When is a strike not protected

1. If the procedure is not followed.
2. If there is a Collective Agreement that states employees cannot strike over a particular issue.
3. If workers are engaged in essential services.

Lock-out
• The employer prevents employees from entering the workplace in an attempt to force them to accept
employer’s demands.
• The employer doesn’t have to pay wages and employees cannot sue the employer for loss of income.

Dispute-resolution mechanisms
• The Labour Relations Act makes provision for di erent dispute-resolution mechanisms to be created in order
to prevent and solve dysfunctional con ict in the workplace.

Collective Bargaining and Bargaining Structures:

· Collective bargaining was de ned above. Management is prepared to take part in collective bargaining as it
enables negotiation with one set of people and not individual employees. Employees are prepared to let a
trade union negotiate for them (it gives them enhanced bargaining power).
· When an agreement is reached, the terms of the settlement are recorded in a collective agreement and all
parties sign the agreement (they are bound by it).
· The LRA makes provision for Centralised collective bargaining. Employers in a particular sector can join
forces to negotiate with one or more unions representing employees in that sector.

Commission for Conciliation, Mediation and Arbitration (CCMA):

· An independent dispute-resolution body that is not run/controlled by any political party, trade union or
business. It is funded by NEDLAC.
· Aim of the CCMA is to settle disputes between employers and employees in order to prevent labour
unrest.
· CCMA process:
1. Conciliation: commissioner meets the employer and employee to explore ways to settle the dispute.
If conciliation fails, the next step is mediation.
fi
fl
fi
ff
fi
 2. Mediation: Commissioner makes a recommendation on how he/she thinks the dispute should be
solved. If the parties do not want to follow recommendation, arbitration is the next step.
3. Arbitration: Commissioner issues an award (decision) that is legally binding on both parties to solve
dispute.
4. If one of the parties feels there was a aw in the arbitration process, the party has 6 weeks to refer it
to the Labour Court.

Bargaining · Section 28 of the LRA states that Bargaining councils may be formed by Employers’
council Organisations and Trade Unions in a particular sector. NEDLAC must agree that there
is enough representation from both sides before it can be established.
· The level of representation is important, because the agreements reached will apply to
all parties in that sector, regardless if they were part of the agreement or not.
· If an employer feels the agreement is to his/her disadvantage, he can apply to be exempt
from the agreement.
· The functions of the bargaining council are to:
1. Negotiate and enforce collective agreements on issues such as wages, bene ts
and grievance procedures.
2. Design and submit proposals for policies and laws that have an impact on that
sector.
3. Prevent and resolve labour disputes in that sector / industry.
4. Establishing training and education schemes in that industry.
Statutory · A statutory council is similar to a bargaining council, except the agreements reached at
council the statutory council are not extended to all parties in the sector / industry without the
approval of the Minister of Labour.
· The minimum requirement for the establishment of a Statutory council is 30%
representation of employees and employers operating in that sector.
Workplace · Only established if the business employs 100 or more employees.
Forum · Mechanism whereby employees and employers consult with each other and make joint
decisions on certain issues (not wages).
· Some of the issues dealt with are:
1. Health and safety measures
2. New work methods resulting in the possibility of restructuring
3. Retrenchment of workers
4. Job grading
5. Criteria for merits and bonuses
6. Education and training
If there is a dispute between the WPF and employer that can’t be resolved, it is referred to
the CCMA in writing.

Trade Unions:
· A group of workers organising themselves in a collective organisation with the aim to engage in collective
bargaining with the employer and/or employer organisations.
· Constitution of South Africa recognises Trade Unions and the right to join them.
· The LRA allows registered Trade Unions to be part of the collective bargaining process and to ful l the
following roles and functions:
1. Ensure industrial peace by in uencing policies and decisions regarding labour issues.
2. Address issues like conditions of service, safety in the workplace, remuneration, and workplace
restructuring.
3. Ensure fair treatment of workers.
fl
fl
fi
fi
 · Work standards give employees an understanding of performance expectations. Once employees are
aware of the expectations, it will lead to better performance, more pro ts and potentially better wages
(win-win situation).
· Workers will also have an understanding of how failure to meet standards will be dealt with.
· The role of Trade Unions is carried out by participating in collective bargaining. If it is not possible to
reach an agreement - conciliation, mediation and arbitration will be followed.
· As a last resort, the LRA allows Trade Unions to organise strikes (if the correct procedures are followed) in
an e ort to force the employer to negotiate a settlement for the dispute.

NEDLAC (National Economic Development and Labour Council):

· NEDLAC aims to:
1. Make economic decision-making more inclusive
2. Promote the goals of social equity and economic growth
· Section 77 of the LRA empowers NEDLAC to intervene as a dispute-resolution body where there are
disagreements between business, trade unions and government (regarding issues of socio-economic
policy).

Employment Equity Act (EE) 55 of 1998

• The act is designed to redress the inequalities of the past through A rmative Action (AA).
• A rmative Action means designated groups (Blacks, Coloureds, Indians, Chinese, all females and disabled
people) who were previously marginalised in the workplace now get preferential treatment to ensure equal
representation in all job categories at all levels of the workplace.
• When looking at issues such as training, promotion and remuneration, any equality due to past practices has
to be recti ed.
• Some people argue that it is illegal because it is ‘discriminating against some of the existing workforce’
remember the Limitation clause.
• The issue of EE compliance is serious. If a business is a designated employer (more than 50 employees and/or
exceeds a predetermined turnover) and it doesn’t comply with the act, heavy penalties could be faced.
Implications
Positive Negative
Imbalances and unfairness of the past are corrected. Places an additional workload on the business.
Employers have to conduct an analysis to identify
equity issues and then submit this in their EE report.
People who do not necessarily have skills to work
certain positions are sometimes promoted to get the
right AA proportions.
A more diverse workforce with better representation When other employees do not respect the
from all people is ensured. knowledge, skill and competencies of EE
appointment, it may lead to resentment and con ict
in the workplace.
The brain drain experienced by South Africa is a
disadvantage of EE.

Broad Based Black Economic Empowerment Act 53 of 2003 (BBBEE):

• To redress the economic imbalances of the past.
• The “black” in BBBEE stands for black, coloured and Indian people.
• The aim is to bring the black majority into the economic mainstream.
ffi
ff
fi
fl
ffi
fi
 Five pillars of BBBEE

The percentage of black ownership must be at least 40% black ownership to get maximum BBBEE points.

The aim is to empower more black people to become active in management in a business.

Encourage mentorships, learnerships and internships to emphasise skills development.

Ensure black-owned suppliers are used.

To establish socio-economic development by ensuring black people have access to funds to become economically
empowered and start their own businesses.

Implications
Positive Negative
Promotes human rights as granted in the South African The majority of black South Africans have not bene ted
Constitution. from BBBEE.

A large portion of the black middle class has bene tted

from the Act.

Real opportunities have occured for black people to There are still a large amount of businesses who window-
become part of the economy. dress.

Skills development for black people has increased.

Skills development Act 97 of 1998

• This was the starting point to formulate a National Skills Development Strategy that could helo to ensure
South Africa develops the skills needed for economic growth, social development and sustainable job
creation.
• The aims of the SDA:
1. Increase employment opportunities for PDIs.
2. Help South Africans improve their quali cations and skills and to ensure economic development is
achieved and people have better standards of living.
3. Introduce learnerships and skills programmes.
4. Promote entrepreneurship through training and skills development.
5. Improve employment opportunities for unemployed people.
6. Encourage employees to improve their skill levels by becoming involed in training.

1% of payroll to
SARS

20% to
National Skills 80% to SETA
Fund

49.5%
10% to SETA 20% mandatory 20% National 0.5% QTCO
discretionary
admin grant Skills Fund quality control
grant
fi
fi
fi
• The goal of the National Skills Fund is to ensure funds are allocated towards projects prioritised in the
National Skills Development Strategy (NSDS).
• The Mandatory grant is 20% of what the business paid to the Skills Development Levy.
• The business only receives the mandatory grant is Workplace Skills Plans and Annual Training Reports are
submitted.
• To get the Discretionary grant the business must implement pivotal training, learnerships, work integrated
learning or bursaries meeting speci c criteria.

Sector Education and Training Autorities

• Work out Sector Skills Plans and implement the plan to make sure the skills are developed. They do this by:
1. Watching over education and training in the sector.
2. Approving Workplace Skills Plans and Annual Training Reports from employers in the sector.
3. Make sure learnerships are established in the sector.
4. Making funds available to employers and trainers to do the required training.
• Workplace Skills Plans: plan developed by the business based on the needs identi ed in the Skills Gap
analysis. It is submitted to the SETA and it is used to identify scare skills and critial skills to develop.
• Annual Training Reports: explains which training plans in the previous year’s WSP were used. Records of all
training programmes must be available for the SETA to verify that training did take place.
Implications
Positive Negative
More training opportunities for employees. It is an additional expense for the business.

Completed learnerships allows possible employment SETAs overseeing training in the di erent sectors are not
opportunities. always e ective.

More skills in the business could lead to better performance Only 20% of the money is claimed back.
in the business.

Funding for training is obtained from the Skills Smaller businesses nd it di cult to nd time to allow sta
Development Levy. to go on training.

20% of the Skills Development Levy is claimed back by If the employee leaves the business, it is seen as money
submitting ATR and WSP. wasted.

Any person or business that does not follow the act they
can face nes or jail time.

Basic conditions of employement Act 75 of 1997 (BCEA)

• Aimed at ensuring all employees are treated in a fair manner in the workplace.
• This act promotes economic development.
• This act protects workers against unfair labour practices.
• BCEA makes provision for Employment Conditions Commissions to be established. They will investigate
working conditions and wages in speci c sectors.
• A recommendation will be made to the Minister of Labour and they will decide to accept the recommendation
and it will become law in the form of a Sectorial agreement.
ff
fi
fi
ffi
ff
fi
fi
fi
ff
fi
 Working hours and overtime · No employee may work more than 45 hours a week.
· This means 9 hours a day in a 5 day week.
· Or 8 hours a day if the employee works more than 5 days a week.
· After this, the employee is working overtime (there are exceptions to
this, for example if you are a senior manager).
· The remuneration for overtime is 1.5 times the employees usual
salary.
Deductions · Employers may not deduct money from an employee’s remuneration,
unless:
- It is voluntary (medical aid etc.)
- It is a legal requirement (PAYE tax, UIF contributions etc).
Public Holidays · If the employer wants the employee to work on a public holiday, the
remuneration is double the employees usual salary or equal time
o .
Annual leave · Employee is entitled to 21 consecutive days’ annual leave every
annual leave cycle.
Sick leave · Employee is entitled to 30 days sick leave in a three year cycle (if
he/she works a 5 day week)
· Employee is entitled to 36 days sick leave in a three year cycle (if
he/she works a 6 day week)
Maternity leave · Employee is entitled to 4 consecutive months’ maternity leave
(unpaid).
· If the employee does not receive a salary, they can claim from UIF.
Family responsibility leave · Only applies if the employee has been working for longer than 4
months and he/she works at least 4 days a week.
· Entitled to 3 days family responsibility leave (a death in the family or
a child being born etc.)
Notice periods to terminate · If employee has been employed for less than one month = one
employment week notice.
· If the employee has been employed for less than one year = two
weeks’ notice.
· If the employee has been employed for one year or more = four
weeks’ notice.

Implications
Positive Negative
It protects vulnerable employees such as part-time, If an employee would like to work longer hours to
farm and domestic workers against being exploited earn more overtime, it is not allowed and as such
by employers. limited the income potential of the employee.

Provides mechanisms to set minimum wages to farm

and domestic workers.
Prevents child labour. Employer often argues that they can’t a ord to
Protects employees against unreasonably long employ people if the minimum wage is too high or
working hours, especially in areas such as the even that they will be able to employ more people
transport and security industries. that are prepared to work for a lower wage.

Ensures employees are treated in a fair manner.

ff
ff