NCV 2 Management Practice Hands-On Support Slide Show - Module 3

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Transcript of NCV 2 Management Practice Hands-On Support Slide Show - Module 3

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Management Practice 2

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Basic Legislation

Management Practice – Level 2 2Future Managers

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After completing this Module, you will be able to:1. Identify the legislation that regulates

employment issues. 2. Demonstrate understanding of the main

aspects of the Labour Relations Act.3. Demonstrate understanding of aspects of the

Basic Conditions of Employment Act.4. Demonstrate understanding of the Skills

Development Act and Skills Development Levies Act

Basic Legislation

Management Practice – Level 2 3Future Managers

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After completing this outcome, you will be able to:1. Name and retrieve the six main pieces of labour

legislation.2. Explain who is covered by each Act.3. Explain the scope of each Act.4. Briefly explain how each Act is applied within a

given context.5. Name and explain organisational human resource

policies and procedures applicable in terms of current legislation

1. Identify the legislation that regulates employment issues

Management Practice – Level 2 4Future Managers

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• Labour law has to ensure the protection of employees, fairness in the workplace and maintenance of equity

• Provides the framework for freedom of association, freedom from victimisation and the right to engage in industrial action

Purpose of Labour Laws

Management Practice – Level 2 5Future Managers

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1.1 Name and retrieve the six pieces of labour legislation that

regulate employment issues

Management Practice – Level 2 6Future Managers

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• The task of the whole group is to get a copy of each of the Acts mentioned.

• The following sources can be helpful in your search for the Acts:– your nearest library– department of labour– the government press– the internet (download)

• Read the legislation to get an idea of the broad content of each Act.

• Keep the legislation so that it can serve as a handy tool or guide whenever you want to know more or when you do research on a specific aspect of the legislation.

Activity 3.1: Search – Labour Legislation

Management Practice – Level 2 7Future Managers

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• Instrumental in breaking down employment discrimination

• Includes diversity and transformation in the workplace

A. The Employment Equity Act

Management Practice – Level 2 8Future Managers

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• Now that you know what employment equity is, divide into groups and have a further discussion about employment equity or inequity.

• List a few aspects, actions or examples of the past to illustrate the inequity in employment.

• Referring to your list of employment inequalities, decide if something had been done to solve the problem and write down how it was done.

Activity 3.2 Employment Equity

Management Practice – Level 2 9Future Managers

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The focus point of the act includes:

Management Practice – Level 2 10Future Managers

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• The major purpose of the Act is to achieve equity in the workplace by:

a. promoting equal opportunity and fair treatment in employment through the elimination of unfair discrimination.

b. Implementing affirmative action measures to redress the disadvantages in employment experienced by designated groups, in order to ensure their equitable representation in all occupational categories and levels in the workforce.

Purpose and scope of the Act

Management Practice – Level 2 11Future Managers

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• the exercise of true democracy• elimination of unfair discrimination in

employment• the implementation of employment equity to

redress the effects of discrimination• a diverse workforce broadly representative

of our people• economic development and efficiency in the

workforce.

Organisations must have a policy promoting:

Management Practice – Level 2 12Future Managers

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• Applies to all employees and employers except: – members of the National Defence Force– National Intelligence Agency– South African Secret Service– Unpaid charitable workers

B. Basic Conditions of Employment Act

Management Practice – Level 2 13Future Managers

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The Act has three primary objectives namely:1. To ensure that working conditions of unorganised

and vulnerable workers meet minimum standards that are socially acceptable in relation to the level of development of the country

2. To remove rigidities and inefficiencies from the regulation of minimum of conditions of employment and to promote flexibility.

3. The working time of employees must be arranged so as not to endanger their health and safety, and with due regard to their family responsibilities.

Purpose of the Act

Management Practice – Level 2 14Future Managers

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• Ordinary hours of work – 8 hour work day• Overtime – 3 hours overtime in a day or 10 hours in

a week• Night work - work performed between 18h00 and

06h00 • Meal intervals – interval of at least sixty (60)

minutes after five hours • Public holidays - normal wage for a public holiday

that falls on a working day• Annual leave - employees are entitled to three weeks

fully paid leave after every twelve months of continuous employment

Scope of the Act

Management Practice – Level 2 15Future Managers

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• Sick leave - employee is entitled to six weeks paid sick leave for every thirty-six months of continuous employment

• Maternity leave - a pregnant employee is entitled to four months maternity leave

• Family responsibility leave - an employee is entitled to three days paid family responsibility leave

• Payment of remuneration and deductions - payment may take place daily, weekly, fortnightly or monthly

• Termination of employment - notice must be given in writing

Scope of the Act

Management Practice – Level 2 16Future Managers

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• The employer must:– give the employee written particulars of

employment when the employee starts employment– keep the particulars of employment for four years

after the end of the contract of employment– give an employee information concerning

remuneration, deductions, and time worked, with their pay

– keep a record of the time worked by each employee and their remuneration

– display at the workplace a statement of the employee’s rights under the Act.

Administrative obligations

Management Practice – Level 2 17Future Managers

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• No person may employ a child less than 15

• Children under 18 may not be employed to do work inappropriate for their age or that places them at risk

Prohibition of employment of children

Management Practice – Level 2 18Future Managers

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• Applies to all employment relationships regardless of which sector

• Purpose of the Act is to:– advance economic development, social justice,

labour peace and a democratisation of the workplace

– by fulfilling the primary objectives of the Act, which are to realise and regulate the fundamental rights of workers and employers

C. Labour Relations Act

Management Practice – Level 2 19Future Managers

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• The Occupational Health and Safety Act ensures that:– No party can agree to conduct work in unsafe

conditions– The Act applies to all workers including

agricultural workers, domestic servants, public servants and students.

– The general public who may be affected are also included

D. Occupational Health and Safety Act

Management Practice – Level 2 20Future Managers

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• Persons included in the Act are:– Persons in any form of work activity including

• Unpaid helpers• Employees paid by some other agency• Independent contractors or sub-contractors

– but excluding• One-person businesses

Purpose and Scope

Management Practice – Level 2 21Future Managers

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• Covers all areas of employment and the use of machinery

• Makes provision for an advisory council on occupational safety, the duties of employers, employees and safety representatives

• Focuses attention on safety committees, reporting of accidents, enquiries, prohibition of victimisation and stipulations regarding offences and penalties

Purpose and Scope

Management Practice – Level 2 22Future Managers

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• To ensure that systems of work, plant and machinery are reasonably safe and without health risks

• To initiate steps to eliminate possible health and safety hazards or risks before resorting to the use of protective equipment

• To ensure, as far as reasonably predictable, that the production, use, handling, storage or transport of articles and substances do not endanger health and safety

• To establish which hazards or risks are involved in any type of work and in the handling of any substance, and what precautionary measures should be taken

Duties of employers

Management Practice – Level 2 23Future Managers

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• To provide the necessary information, instruction, training, and supervision

• To ensure that precautionary measures and the requirements of the Act are implemented

• To ensure that work is performed, and that plant or machinery is used under the supervision of a trained person with sufficient authority to ensure that safety measures are implemented

• To inform all employees of the danger involved in their work

Duties of employers

Management Practice – Level 2 24Future Managers

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• To provide facilities, assistance and training to health and safety representatives

• To inform health and safety representatives beforehand of inspections, investigations, formal inquiries and applications for exemption

• To inform representatives of any incident which occurs at the workplace

• To see that the safety committee performs its functions.

Duties of employers

Management Practice – Level 2 25Future Managers

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• To take reasonable care for the health and safety of himself and of other persons who may be affected by his acts or omissions

• To obey the health and safety regulations • To cooperate with the employer so that the duty or

requirement in terms of health and safety are performed or complied with

• To report any unsafe situation to the safety representative of the employer

• To report to the employer, his mandatory or safety representative any incident which has caused an injury to himself or to any other person.

Duties of employees

Management Practice – Level 2 26Future Managers

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Peter, an employee of Eskom, was doing maintenance work on the high voltage lines just outside of Bloemfontein. All the safety precautions were followed by Peter –he was always very safety orientated and emphasised the importance of regular safety drills and the wearing of safety clothes and other safety material. While he was working on the high voltage lines, with all the safety precautions in place, something unforeseen happened and he fell from the 10 metre stepladder. He injured his back seriously and was taken by helicopter to the Universitas Hospital in Bloemfontein where he had to undergo a back operation and had to stay in hospital for at least a month. Peter was a bit stressed because he was not sure if his medical aid would cover all the costs. As part of any accident that happens, Eskom immediately starts an investigation into the accident. Peter was upset when John, who was working with him, informed him about the investigation and reacted as follows: “Is that how Eskom treats me after all my years of loyal service to the company, and my clean sheet in terms of accidents. How can they think that I was negligent in my actions therefore causing the accident? The next that I will hear from Eskom is that I’m responsible to cover my own medical costs!”.

Activity 3.3: Case Study – Accident on duty

Management Practice – Level 2 27Future Managers

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• Write a letter to Peter, explaining to him the reaction of Eskom on the accident.

• What will happen with Peter if he cannot go back to his job because of his back operation?

• React on Peter’s concern about the medical bill.

Activity 3.3: Case Study – Accident on duty

Management Practice – Level 2 28Future Managers

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• Anyone who commits or omits to do an act and thereby injures another person in such a way that, if he were to die, the perpetrator would have been guilty of culpable homicide (irrespective of whether or not the person dies) can be subject to a fine of up to R100 000 or two years’ imprisonment, or both.

• Any person who influences somebody who is to give evidence, tampers with or misuses safety equipment, or recklessly does anything which endangers health or safety is subject to fines of up to R50 000 or one year’s imprisonment, or both.

Penalties for offences

Management Practice – Level 2 29Future Managers

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• Focus is to:– Enhance of the quality of education and

training– Redress past unfair discrimination in education

training, and employment opportunities– Contribute to full personal development of each

learner and the social and economic development of the nation at large.

E. Skills Development Act

Management Practice – Level 2 30Future Managers

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• Definition of the Act:– Allows for compensation to be paid to an

employee who as a result of his activities in the work situation has become partially or totally disabled or has contracted an occupational disease

F. Compensation for Occupational Injuries and Diseases Act

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• All employees, including casual and seasonal workers

• Directors who have a contract of employment• Independent contractors and domestic workers• Members of the Permanent Force of the

SANDF, and members of the South African Police Services, while employed in service in defense of the Republic.

The Act focuses on

Management Practice – Level 2 32Future Managers

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• Employees are compensated whether their injuries or illness were caused by their own fault or due to their employer’s negligence or that of any other person

• The Act requires provision for the payment of medical aid for the temporary or permanent disablement of an employee. A further obligation is that employers must pay employees who are temporarily disabled their compensation for the first three months of absence from work

• A claim for compensation must be lodged within twelve months after the accident or illness has occurred or the employee has died

Compensation

Management Practice – Level 2 33Future Managers

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• Employees who suffer temporary disability• Employees who are permanently disabled• The dependants of employees, who have

died as a result of their injuries; or an occupational disease

Benefits are paid to

Management Practice – Level 2 34Future Managers

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Discuss and comment on the following situations referring to compensation for occupational injuries or diseases.

• Situation A: Peter, a mechanic, loses his thumb while overhauling a car engine.

• Situation B: Diana, a till operator at Edgars, works with Sheila who is HIV-positive. Six months later, Diana goes for a medical examination which includes an AIDS test. When she received the results she tested HIV positive.

Activity 3.4: Compensation for occupational injuries and diseases

Management Practice – Level 2 35Future Managers

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• Situation C: Shaun, an employee working at the food section of Woolworths, is a keen racing driver. While racing he was involved in a collision with one of the other drivers. Because of his injuries, Shaun was absent from work for six months. He received his medical bill which he had to pay, but his sick leave was only for the first 3 months after his accident. Because of his accident, Shaun is now disabled and in a wheelchair.

Activity 3.4: Compensation for occupational injuries and diseases

Management Practice – Level 2 36Future Managers

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• Definition of the Act– Provides for the payment of benefits to

contributors towards the Unemployment Insurance Fund (UIF) who become unemployed

G. Unemployment Insurance Act

Management Practice – Level 2 37Future Managers

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• Contributors must pay 1% of their remuneration to the UIF

• Contributors must also pay 1%• UIF provides financial assistance to

contributors and their dependents whose service has been terminated through:– Staff reduction– Illness– pregnancy

Purpose and Scope

Management Practice – Level 2 38Future Managers

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• To forward a monthly statement to the unemployment insurance fund, indicating the number of contributors as well as the amounts due by workers and employers

• To keep a full record of all payments made by the employer on behalf of his workers for seven years all contributors must have a contributor’s record card (UF 74 or blue card) – issued by the UIF

• To keep the contributor’s cards of their employees in safe custody and to return the cards to the employees on termination of service

Employer’s duties and responsibilities

Management Practice – Level 2 39Future Managers

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• Employers are responsible for the collection of contributions to unemployment insurance and both employer’s and employee’s contribution must be forwarded to the unemployment insurance commissioner not later than ten days after the end of each month

• If a worker dies on duty, the contributor’s record card must be handed over to his next of kin.

Employer’s duties and responsibilities

Management Practice – Level 2 40Future Managers

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• To qualify, the applicant:– must be available and able to work– must prove that he cannot find suitable work– that he has contributed to the fund for at least

thirteen weeks in the fifty-two weeks (1 year) prior to being unemployed.

• Benefits are usually 45% of the total weekly or monthly remuneration

• Benefits apply for a period of 26 weeks per 52 weeks of unemployment

Unemployment benefits

Management Practice – Level 2 41Future Managers

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• Divide into groups and comment on the following situations referring to qualification for unemployment or not:

• Situation A: Steve retired after 40 years of service at Company A. He was shocked when he received his first pension payment and then immediately applied for unemployment payment.

Activity 3.5: Unemployment Benefit

Management Practice – Level 2 42Future Managers

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• Situation B: Because of financial reasons, Company B had to retrench 10% of their staff – all of them were contributors to the pension fund. Do they qualify for UIF payment?

• Situation C: Susan is pregnant, but Company B does not have a policy on maternity leave. It is not a company benefit

Activity 3.5: Unemployment Benefit

Management Practice – Level 2 43Future Managers

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• Policy formulation is top management’s responsibility

• Once formulated the policy should be put in writing

• The failure of many organisations to develop a policy may be the reason for increasing labour unrest in South Africa

• A policy provides proof of commitment to view and attitudes, and sets limits of behaviour

1.2 Name and explain organisational human resources policies and procedures applicable in terms of current legislation

Management Practice – Level 2 44Future Managers

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• The human resources policy could include the following:– the aim to assist each employee in developing his or

her skills and to enable him or her to use these skills to the full, thus ensuring the employee’s job satisfaction and ability to contribute to the organisation

– the intention to promote and to preserve at all times the dignity and self-esteem of each employee

– the aim to develop and maintain open lines of communication and personal contact between the organisation and each employee.

Human resources policy

Management Practice – Level 2 45Future Managers

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• The human resources policy addresses the needs of the individual within the organisation

• The employment relations policy is intended to regulated the relationship between– management and the workers– management and the organised labour– between management and the several external

agencies that play a part in employment relations

Employment relations policy

Management Practice – Level 2 46Future Managers

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• Must be unambiguous• Must be positively phrased and not contain

negative statements• Must not require interpretation (in simple,

clear language)• Must explain the rationale behind the policy • Must clarify the boundaries within which

individual discretion may be exercised

Employment relations policy:

Management Practice – Level 2 47Future Managers

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• Should meet the relevant legal and government requirements

• Should contain a statement of the organisation’s responsibility to protect workers’ rights and to provide workers with the opportunity of participating in decisions that directly affect them

• Should contain a commitment to the principle of freedom of association

• Should contain an acceptance of the rights of workers to collective bargaining in industrial disputes

Employment relations policy:

Management Practice – Level 2 48Future Managers

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• Development of mutual trust and cooperation

• Prevention of problems and disputes through agreed procedures

• Reduction of labour costs• Strengthening of managerial control• Development of human resources skills• Management of productivity

Policy objectives should be:

Management Practice – Level 2 49Future Managers

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• After completing this outcome, you will be able to:– Explain the main aspects of the Labour Relations

Act.– Explain the concept of unfair labour practice

within a given context.– Name the internal policies that may be used to

resolve a dispute or grievance.– Graphically illustrate the procedures that may be

used internally to settle a grievance or dispute. 

2. Demonstrate understanding of the main aspects of the Labour

Relations Act

Management Practice – Level 2 50Future Managers

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• Purpose of the Act– The purpose of the Act is to advance economic

development, social justice, labour peace and a democratisation of the workplace by fulfilling the primary objectives of the Act, which are to realise and to regulate the fundamental rights of workers and employers under Section 23 of the Constitution.

• Application– The Act applies to all employment relationships

between employer and employees and makes no distinction as to whether these relationships are in the private or the public sector.

2.1 Explain the main aspects of the Labour Relations Act

Management Practice – Level 2 51Future Managers

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• Freedom of association and general protections• Collective bargaining• Collective agreements• Strike• Lockout• Workplace forums• Trade unions and employer’s organisations• Dispute resolution

Main Aspects of the Act

Management Practice – Level 2 52Future Managers

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• Workers have a right to form and join a trade union. By doing some research, make a list of all prominent trade unions in South Africa

Activity 3.6: Freedom of association

Management Practice – Level 2 53Future Managers

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• Visit a nearby organisation and ask the human resource manager if he can share with you information on the following: – What will be your plan of action (contingency plan or plan

B) if there is a strike in the company or organisation?– Bring your answer to class to discuss the plan B of the

company.OR • Your facilitator can invite the human resource manager of

one of the companies to address you on how they handle a strike or lock-out.

• Now you get the opportunity to ask questions on what is the company’s plan B when such an action (strike) takes place.

Activity 3.7: Strikes and/or lock- outs

Management Practice – Level 2 54Future Managers

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• Composition– Workplace forums are structures that are made up of

representatives of workers and junior management employees

• Role of the workplace forum– to promote the interests of all employees in the

workplace, excluding senior managerial employees– enhance efficiency in the workplace– to be consulted by the employer, with a view to reaching

consensus– to participate in joint decision-making about matters

concerning them

Workplace forums

Management Practice – Level 2 55Future Managers

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• The CCMA is an independent body with jurisdiction in all the provinces in South Africa

• Role of the CCMA:– establishing collective bargaining structures– designing, establishing and electing workplace forums

as well as creating deadlock-breaking mechanisms– preventing and resolving disputes and employees’

grievances– disciplinary procedures– procedures in relation to dismissals– the process of restructuring the workplace– affirmative action and equal opportunity programmes– sexual harassment in the workplace.

Dispute resolution (CCMA)

Management Practice – Level 2 56Future Managers

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• Gather information on the CCMA: composition, functions, how it operates, responsible to whom, etc.

• Information can be obtained from:– library (ask for material on industrial relations or

labour relations)– department of labour– internet (download)

• Bring the information to class and share information and ideas about the CCMA with one another

Activity 3.8: The CCMA

Management Practice – Level 2 57Future Managers

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• Unfair labour practice includes any unfair act or omission that arises between an employer and an employee

2.2 Explain the concept of unfair labour practice

Management Practice – Level 2 58Future Managers

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• A dismissal us regarded as automatically unfair if the employer dismisses an employee for any of the following reasons:– The employee participated in or supported or indicated

an intention to participate in or support a strike or protest action

– An employee refused or indicated an intention to refuse to do any work (normally done by an employee who at the time was taking part in a strike, or was locked out, unless that work was necessary to prevent an actual danger to life, personal safety, or health)

– To compel the employee to accept a demand in respect of any matter of mutual interest between the employer and employee

Unfair dismissal

Management Practice – Level 2 59Future Managers

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• The employee took action, or indicated an intention to take action, allowed by the act, against the employer

• An employer has terminated a contract of employment with or without notice

• An employee reasonably expected the employer to renew a fixed-term contract of employment on the same or similar terms, but the employer offered to renew it on less favourable terms, or did not renew it

• The employee’s pregnancy, intended pregnancy, or any reason related to her pregnancy

Unfair dismissal

Management Practice – Level 2 60Future Managers

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• An employer refuses to allow an employee to resume work after she:– took maternity leave in terms of any law, collective

agreement, or her contract of employment– was absent from work for up to four weeks before

the expected date, and up to eight weeks after the actual date of the birth of her child.

• An employer who dismissed a number of employees for the same or similar reasons has offered to re-employ one or more of them, but has refused to re-employ another;

Unfair dismissal

Management Practice – Level 2 61Future Managers

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Unfair dismissal

Management Practice – Level 2 62Future Managers

Unfair discrimination against an employee, directly or indirectly, on:

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• With your knowledge of what unfair labour practice is, indicate whether the following are unfair labour practices:– Employee participates in a legal strike and then

dismissed– Mine declared unsafe, employee refuses to work,

dismissed because of his refusal– Employee dismissed because of absenteeism with the

birth of a child– Employee dismissed because of absenteeism without a

medical certificate– Employee returning after maternity leave and replaced

by a newly appointed employee

Activity 3.9: Unfair labour practice

Management Practice – Level 2 63Future Managers

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• Employee refuses to do the work of those who were on strike and therefore dismissed

• Employee “unhappy” about white-collar crime and dismissed because of his complaints

• Employee disabled because of a work accident and management decided to put the employee on early retirement

• Black employee not ready for promotion, but promoted because of transformation

• Engaged woman employee not promoted because of the uncertainty of what is going happen after she gets married

Activity 3.9: Unfair labour practice

Management Practice – Level 2 64Future Managers

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• Definition of a grievance– A Grievance is an occurrence, situation or condition that

justifies the lodging of a complaint by an individual• A grievance usually would constitute a real, perceived or

alleged breach in terms of the employment contract• If a sound grievance policy doesn’t exist, managers

won’t be aware of any grievances. Does this mean they don’t exist?

• Employees need to be taught to utilise the grievance policy

• Grievances should be handled promptly• Forms an integral part of the organisations

communication policy

2.3 Name the internal policies that may be used to resolve a dispute or grievance

Management Practice – Level 2 65Future Managers

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Grievance procedure

Management Practice – Level 2 66Future Managers

Grievance raised verbally with

Investigation and decision within two working days

If unresolved

Grievance form submitted within three working days to

enquiry and decision within three working days

If unresolved

Grievance form submitted within three working days to

enquiry and decision within three working days

If unresolved

Grievance form submitted within three working days to

enquiry and decision within three working days

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• The facilitator of the group will explain to the group the route to follow when they want to lodge a grievance on something that happens in their classroom – imagine something that justifies the lodging of a grievance so that the procedure can start.

Activity 3.10: Grievance Procedure

Management Practice – Level 2 67Future Managers

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After completing this outcome, you will be able to:1. Explain the concept “employee” as well as how the status of the

employee is determined2. Explain the regulations of the Basic Conditions Employment Act

relating to working hours3. Explain when an employee qualifies for overtime, according to

legislation4. Explain the regulations relating to breaks during hours of work5. Differentiate between the various types of leave that an

employee is entitled to, with an example of each type6. Explain the conditions under which employment can be

terminated according to the Basic Conditions of Employment Act

3. Demonstrate understanding of aspects of the Basic Conditions of Employment

Act

Management Practice – Level 2 68Future Managers

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• Definition of an employee– any person employed in a workplace– with regard to the Labour Relations Act: Any

person (except an independent contractor) working for another person or for the State (government) and who receives or is entitled to receive remuneration; or any person who in any manner assists in carrying on or conducting the business of an employer

3.1 Explain the concept “Employee”

Management Practice – Level 2 69Future Managers

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• Divide into groups (4/5 per group) and test your general knowledge on the basic conditions of employment 

• Note: This is not a test. In your groups, answer the questions and after the discussion, mark your answers according to the information received

• What are the minimum work hours per week? • True or false: Overtime work is compulsory and the

compensation is 1.5 times the normal wage • After how many continuous working hours are

workers entitled to a meal interval? • At what time does night work start and finish?

Activity 3.11: Basic conditions of employment

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• If an employee has to work on a public holiday, what is the remuneration that he or she can expect?

• How many official public holidays are there in South Africa?

• If a public holiday is on a Sunday, the Monday is now also a public holiday, can management force staff to work on that Monday?

• If they work on that Monday, what is the rate per hour that they can expect to receive?

• What is annual leave? • How long is maternity leave? • When are employees allowed to take family

responsibility leave?

Activity 3.11: Basic conditions of employment

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a. Ordinary hours of work– Maximum 45 hours of work per week– 9 hours per day max for five days a week– 8 hours per day max for six days a week

b. Extended ordinary hours of work– Employee may work up to 12 hours a day– Weekly limits apply

Regulations as per working hours

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c. Daily and weekly rest period– Rest period of at least 12 hours– Work on Sunday must be paid double time unless– Work on Sunday is normal for that employee

d. Night work– Between 1800 and 6:00– Employees must be compensated by an allowance or

reduced working hours. – Transportation must be available– Employers must inform employees who work after 23:00 of

the health and safety hazards of night work, and on request must provide employees with a free medical assessment

Regulations as per working hours

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• What are the requirements for overtime– Overtime may only be worked by agreement– An employee may not work more than three

hours overtime in a day, or ten hours overtime in a week

– Overtime work must be compensated by paying the employee at 1.5 times the employee’s normal wage or, if agreed, by granting the employee a period of paid time off, equivalent to the value of the overtime pay

Explain when an employee qualifies for overtime according to legislation

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• Overtime on Sundays and public holidays– If they work occasionally on a Sunday then they

have to receive double pay per workday or hours worked

– If they work regularly on a Sunday, they must be paid 1.5 times their normal rate per hour or wage

– Any work on a public holiday must be remunerated at double rates – per hour or per day

– Employers and employees can negotiate on paid time off in return for working on a Sunday. Both parties must agree upon the decision of time off

3.3 Explain when an employee qualifies for overtime according to

legislation

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• Meal intervals– An employee must have a meal interval of at least sixty minutes

after five hours. This may be reduced to thirty minutes by agreement

– If an employee is required to be available for work or required to be on the employers premises during his or her meal interval, they must be paid because it count as extra time worked

• Tea breaks– Employees are allowed to take a tea break in the morning session

of the workday as well during the afternoon session – Legislation allow the worker a tea break of maximum twenty

minutes and employees will not receive any additional payment if they have to work during the company’s tea break

– If it happens, employers will allow employees to take their tea break at a time which suits them

3.4 Explain the regulations relating to breaks during hours of work

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a. Annual leave1. Employees are entitled to 3 weeks fully paid leave after every

12 months of continuous employment. This may also be calculated as one day’s leave for every seventeen days of employment

2. An employee must not pay an employee instead of granting annual leave

3. However, an employee whose employment is terminated must be paid out any pay due for leave that the employee has not taken

b. Public holidaysa. All employees must be paid their normal wage for a public

holiday that falls on a working dayb. An employee may not be required to work on a public holiday

unless by agreementc. Work on a public holiday must be remunerated at double

rates

3.5 Differentiate between the various types of leave

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c. Sick leave– An employee is entitled to six weeks paid sick

leave for every thirty-six months of continuous employment

– During the first six months of employment an employee is entitled to only one day’s paid sick leave for every twenty-six days worked

– An employer may require a medical certificate from an employee who is regularly away from work for more than two days, before paying the employee for sick leave

3.5 Differentiate between the various types of leave

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d. Maternity leave– A pregnant employee is entitled to four months maternity leave. – This may begin up to four weeks before the expected date of

birth, unless otherwise agreed or, if required by the employee for health reasons

– An employer may not require an employee to return to work for six weeks after the birth of a child. During this period, an employee may elect to return to work if a medical doctor certifies that she is fit to do so

– An employee who has a miscarriage in the third trimester of pregnancy may remain on maternity leave for six weeks or, if a doctor certifies it necessary for her health, for longer

– During pregnancy and for six months after birth, an employer must offer suitable alternative employment to an employee who works at night or whose work may endanger her health or the safety or her child

3.5 Differentiate between the various types of leave

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e. Family responsibility leavea. an employee is entitled to three days paid family

responsibility leaveb. This only applies to employees who work for four

or more days in a weekc. The employee may take this leave in the event of:

a. The birth of the employee’s childb. If the employee’s child is sickc. If a member of the employee’s immediate family dies.d. An employer may require reasonable proof of the

purpose for which this leave is taken before paying the employee.

3.5 Differentiate between the various types of leave

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• During the first four weeks of employment, and employment contract may be terminated with one weeks notice

• Notice period for the remainder of the first year is 30 days

3.6 Explain the conditions under which employment can be terminated

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• failure or refusal to work – employees engaged in an illegal strike

• deliberate and continued absenteeism – employees are continually absent

• where it can be proven that they do not have a valid reason

• serious incompetence when an employee misled the employer into believing that he (the employee) is able to perform the work whereas he is not competent to perform it

• refusal to carry out or disobey orders• repeated unpunctuality or ongoing late coming

Transgressions leading to termination of employment

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• incapacity of the employee – if the employee, by reason of illness or disability, is unable to perform his work, the employer is entitled to dismiss him

• dishonesty in the sphere of work – including stealing, failure to account for funds, fraud or accepting bribes

• dishonesty outside of the sphere of employment is when an employee has been convicted of a crime which places serious doubt on his trustworthiness in the position he occupies

• disloyalty to the employer – employee competes with the employer’s business, namely the leaking of confidential information

• drunkenness or substance abuse• assault – any physical attack on another employee or on a

member of management is regarded as sufficient reason for dismissal

Transgressions leading to termination of employment

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 After completing this outcome, you will be able to:1. Explain the requirements placed on employers by the

Skills Development Act with reference to an organisation’s workplace skills plan and annual training report

2. Explain the requirements placed on employers by the Skills Development Levies Act with reference to an organisation’s workplace skills plan and the claiming back of levies for training purposes

3. Explain the concept of studentships and how studentships could be promoted in a specific business unit

4. Explain the concept of lifelong learning and indicate how learning can be facilitated in a specific business unit

4. Demonstrate an understanding of the Skills Development and Skills

Development Levies Act

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• The National Qualifications Framework was formed to focus on the following:– creation of an integrated national framework for

learning achievements– facilitate access to and mobility and progression within

education, training and career paths– enhance the quality of education and training– accelerate the redress of past unfair discrimination in

education, training and employment opportunities, and thereby

– contribute to the full personal development of each learner and the social and economic development of the nation at large

4.1 Explain the requirements placed on employers by the Skills Development Act

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• To cooperate with the Act and to support the Act to help their employees developing their skills

• Allow the workplace to be a learning environment where employees can acquire new skills and gain valuable work experience

• Encourage their employees to take part in skills development

• To improve the quality of employment to the benefit of the organisation

Requirements of employers

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• To develop the skills of the South African workforce• To increase the levels of investment in education and

training in the labour market and to improve the return on investment

• To use the workforce as an active learning environment, to provide employees with the opportunities to acquire new skills and to provide opportunities for new entrants to the labour market in order to gain work experience

• To employ persons who find it difficult to be employed

• To encourage workers to participate in leadership and other training programmes

Purpose and Scope of the Act

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• To improve the employment prospects of persons previously disadvantaged by unfair discrimination and to redress those disadvantages through training and education

• To ensure the quality of education and training in and for the workplace

• To assist workseekers to find work, retrenched workers to re-enter the labour market, and employers to find qualified employees

• To provide and regulate employment services

Purpose and Scope of the Act

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• The requirements are:– to register as an employer for levy

purposes– to pay over the levy amount (1% of the

organisation’s gross wages) within 7 days after the end of the month

4.2 Explain the requirements placed on employers by the Skills Development Levies

Act

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a. Amount payable– 1% of total remuneration, referring to gross taxable

income, excluding pension and retirement allowancesb. Registration for payment

– Employers have to apply to the Commissioner of the South African Revenue Services

c. Payment of Levies– Levies have to paid no later than 7 days after the end

of the month– Levies go into the National Revenue Fund (80%) and

the National Skills Fund (20%)

The Skills Development Levies Act

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d. Levy Grant scheme• Ensures core level of training• Ensures that all firms contribute to the cost of training• Improves collective efficiency because the levies are

collected by the South African Revenue Service• Balances development and equity• Promotes training effectiveness and efficiency• Ensures multi-party participation• Allocates revenues to address social equity needs• Ensures proper monitoring and evaluation – evaluating

the performance of the various role-players in the system

The Skills Development Levies Act

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e. Use and recovery of levy– Employers have to prove that they are

registered and levies are paid to date– Levies of up to 15% are recoverable upon

appointment of Skills Facilitator– Another 10% for a workplace skills

programme– 20% upon implementation of workplace skills

programme

Skills Development Levies Act

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• Learnerships lead to a qualification registered with the South African Qualifications Authority (SAQA)

• Example of a registered learnership– Certificate in Tourism, Level 4 of Theta

• Promoting Learnerships– Identify workplaces where workers can gain practical

experience– Supporting the development of learning material– Improve the facilitation of learning material– Assist and conclude the learnership agreement between

the learners and the accredited training provider

4.3 Studentships of Learnerships

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• What is lifelong learning?• The promotion of learning

– Learning is an individual’s ability to doe something that she was previously not able to do

– Learning should be as far as possible managed so that time devoted to learning is effectively utilised and is directed at achieving enterprise objectives

4.4 Explain the concept of lifelong learning and indicate how learning can be facilitated in a specific business unit

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• Aspects that affect learning– whether the course is structured or

unstructured– the learner target group– whether the course instructor acts in an

organised and learning oriented manner– the duration of the course– whether the training is in-service training– the use of lecturing methods

Lifelong learning

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• Factors that promote effective learning– the motivation of the learner– the ability of the learner to display self-discipline in

planning their own study activities– learners who accept responsibility for their own

studies– learners who realise that learning requires effort– learners who concentrate and show perseverance

throughout the training– learners who decide on the rate of learning

Lifelong learning

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1. Can you identify the legislation that regulates employment issues?1. Name and retrieve the six main pieces of labour

legislation?2. Explain who is covered by each Act?3. Explain the scope of each Act?4. Briefly explain how each Act is applied within a

given context?5. Name and explain organisational human resource

policies and procedures applicable in terms of current legislation?

Recap

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2. Can you demonstrate understanding of the main aspects of the Labour Relations Act Explain the main aspects of the Labour Relations Act.1. Explain the concept of unfair labour practice

within a given context2. Name the internal policies that may be used to

resolve a dispute or grievance3. Graphically illustrate the procedures that may

be used internally to settle a grievance or dispute

Recap

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3. Can you demonstrate understanding of aspects of the Basic Conditions of Employment Act:1. Explain the concept “employee” as well as how the

status of the employee is determined2. Explain the regulations of the Basic Conditions

Employment Act relating to working hours3. Explain when an employee qualifies for overtime,

according to legislation4. Explain the regulations relating to breaks during

hours of work5. Differentiate between the various types of leave that

an employee is entitled to, with an example of each type

6. Explain the conditions under which employment can be terminated according to the Basic Conditions of Employment Act

Recap

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4. Can you demonstrate an understanding of the Skills Development and Skills Development Levies Act :1. Explain the requirements placed on employers by the Skills

Development Act with reference to an organisation’s workplace skills plan and annual training report?

2. Explain the requirements placed on employers by the Skills Development Levies Act with reference to an organisation’s workplace skills plan and the claiming back of levies for training purposes?

3. Explain the concept of studentships and how studentships could be promoted in a specific business unit?

4. Explain the concept of lifelong learning and indicate how learning can be facilitated in a specific business unit?

If you can. Congratulations, you are ready to move on to the next module.

Recap

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