Basic Conditions of Employment Act/BCEA

Purpose of the BCEA

• Provides clear terms and conditions of employment for employers and employees.

• Set minimum requirements/standards for the employment contract.

• Regulates the right to fair labour practices as set out in the Constitution.

• Adheres to the rules and regulations set out by the International Labour Organisation.

• Regulates the variations of basic conditions of employment.

• Advance economic development and social justice.

Impact of the BCEA

Positives/Advantages

• Creates a framework of acceptable employment practices e.g., work hours, leave, etc.

• Promotes fair treatment of employees in business.

• Encourages consultation between employers and employees.

• Outlines minimum requirements that form the basis of employment contracts.

• Work hours are specified so that the employer cannot exploit employees.

• The rules and regulations are very specific, which clearly guides the employer on how to deal
with employment issues.

• Employees are permitted to consult labour unions in cases where the BCEA conditions are
violated. (Relationship with LRA)

• Employees may submit complaints to labour inspectors who can address it.

Negative/Disadvantages

• Developing/Drafting a formal/legal employment contract may be time-consuming/costly.

• Businesses may regard employment contracts negative and may not implement it, which
result in non-compliance/penalties.
• No employer may force an employee to work more than 45 hours in a week. This may result
in reduced productivity.

• Hiring cheap labour is no longer possible, so businesses cannot exploit workers.

• BCEA forces businesses to comply with many legal requirements, which may increase labour
costs.

• Businesses not complying to the Act, may be charged with high penalties, which may affect
their cash flow negatively.

• Businesses may consider the provisions of the BCEA as unimportant and an unnecessary
administrative burden that increases operating costs.

Discriminatory actions according to the BCEA

• Forbidding workers to discuss wages/salaries with co-workers.

• Preventing workers from having access to employment contracts.

• Refusing to accept a valid medical certificate of a sick worker.

• Refusing to grant a worker family responsibility leave to support a sick family member

Penalties business may face for not complying with the BCEA

• Labour inspectors may serve a compliance order by writing to the Department of Labour

• The Director General may agree/change/cancel the compliance order.

• Labour inspectors may investigate/inspect/ask questions about complaints and remove

records as evidence.

• Businesses may be taken to the labour court for a ruling.

• Businesses that are found guilty of non-compliance may face heavy fines/ penalties.

• They can be ordered to pay compensation and damages to the employee.

Ways in which businesses can comply with the BCEA

• Workers should only work 9 hours per day in a 5-day work week. /8 hours per day in a 6-day
work week. /Overtime should not exceed 10 hours per week.

• They must have a break of 60 minutes after five hours of work

• Workers can take up to six weeks paid sick leave during a 36-month cycle

• Businesses should not employ children under the age of 16.

• Workers must receive double if they work during public holidays/Sunday

Provisions of the BCEA

Hours of work/Work hours

• Workers may not work for more than 45 hours in any week.

• Workers may work nine hours a day if they work five days or less per week/eight

hours a day√ if they work more than five days a week.

• Night work performed after 18:00 and before 6:00 the next day by agreement, must

be compensated by allowance/reduction of work hours.

• Ordinary work hours may be extended by agreement√ by a maximum of 15 minutes per

day/maximum of sixty minutes per week to complete duties when serving the public.

• Ordinary work hours may be reduced√ to a maximum of 40 hours per week/8 hours per

day.

Overtime

• Workers must agree to work overtime.

• Workers cannot work more than three hours overtime per day/10 hours per week.

• Overtime must be compensated as follows:

• One and half times the normal rate of pay for overtime worked on weekdays and Saturdays.

• Double the normal rate of pay for overtime worked on Sundays and public holidays.

• Overtime must be paid either at specified rate for overtime or an employee may agree to
receive paid time off.

• Minister of Labour may prescribe the maximum permitted working hours, including overtime,
for health and safety reasons for a certain category of work
Leave

Types of leave

Annual leave

Workers are entitled to:

• 21 consecutive days annual leave per year/One day for every 17 days worked√/One hour for
every 17 hours worked.

• An employer can only pay a worker in lieu of leave if that worker leaves the job.

Sick leave

Workers are entitled to:

• Six weeks paid sick leave in a period of 36 months/1 day paid sick leave for every 26

days worked during the first six months of employment.

• A medical certificate may be required before paying an employee who is absent for

more than two consecutive days/who is frequently absent.

Maternity leave

• A pregnant employee is entitled to four consecutive months' leave.

• A pregnant employee may not be allowed to perform work that is hazardous to her

unborn child.

• The starting date is usually any time from four weeks before the expected date of

birth or on advice of a doctor/midwife.

Family responsibility leave

• Three to five (3 to 5) days paid leave per year on request in the event of the death of the
employee's spouse/life partner/parent/ adoptive parent/

grandparent/child/adoptive child/grandchild/sibling.

• An employer may require reasonable proof, before granting this leave.

• Male employees are entitled to a maximum of three/five day’s paternity leave when his child
is born.

Meal breaks and rest periods

• Workers must have a meal break of 60 minute after five continuous hours of work.

• This can be reduced to 30 minutes by written agreement, when working less than 6

hours per day.

• A worker must have a daily rest period of 12 continuous hours/a weekly rest period of

36 continuous hours which must include Sundays.

Public holidays

• Workers must be paid for any public holidays that fall on a working day.

• Work on public holidays is by agreement and paid at double the rate.

Termination of employment

• A contract of employment may only be terminated following one week’s notice, if the

worker has been employed for six months or less.

• A minimum of four weeks’ notice must be given, if the worker has been employed for a year
or longer.

• The employee must be given notice in writing.

• An employee who is retrenched/ dismissed for restructuring reasons is entitled to one week’s
severance pays for every year of service.

Child and forced labour

• It is illegal to employ a child younger than 15 years of age.

• It is also illegal to force someone to work.

• Businesses may employ children over the age of 15 years, if employment is not

harmful to their health/well-being/education/moral and social development/ minors

under 18 years of age may not do dangerous work/work meant for an adult.
 Compensation for Occupational Injuries & Diseases Act/COIDA

Purpose of COIDA

• Provides a comprehensive protection to employees who injured in the course of performing

their duties.

• COIDA applies to all casual and full-time workers who become ill/injured/ disabled/killed
due to a workplace accident/disease

• It excludes workers who are guilty of wilful misconduct/workers working outside South
Africa for at least twelve months/members of the SA Defence Force/Police services.

• It provides for the establishment of a Compensation Board whose function is to advise the
Minister of Labour on the application/provisions of COIDA.

Impact of the COIDA on businesses

Positives/Advantages

• Promotes safety in the workplace.

• Creates a framework for acceptable employment practices and safety regulations.

• Supply administrative guidelines/mechanisms for dealing with/processing claims.

• Eliminates time and costs spent on lengthy civil court proceedings.

• Employers are protected from financial burden should an accident occur in the workplace
provided that the employer was not negligent

• Claiming processes are relatively simple.

• Makes businesses more socially responsible as they cannot just employ workers at random in
dangerous working conditions.

• Workers are treated with dignity and respect as businesses view them as valuable assets and
not just as workers.

• Covers all employees at the workplace if both parties meet all the necessary safety provisions
in the Act.

• Employees do not contribute towards this fund.

• Employees are compensated financially for any injury/disability resulting from performing
their duties at their workplace.

• In the event of the death of an employee as a result of a work-related accident/ disease, his/her
dependent(s) will receive financial support.

• Employees receive medical assistance provided there is no other medical assistance option.
/Cannot claim medical assistance from the fund and medical aid.

• Any compensation to an employee/the family is exempt from income tax.

• Medical expenses/Other types of compensation are paid to employees and/or their families
depending on the type/severity of the injuries.

• Employers have to pay a monthly amount to the Compensation Fund depending on the
number of employees/the level of risk they are exposed to.

Negative/Disadvantages

• Claiming processes can be time consuming.

• Procedures required by this Act may be costly as paperwork places an extra administrative
burden on businesses.

• Implementation processes/procedures required by the Act may be expensive.

• Employers have to register all their workers/make annual contributions to COIDA, which
may result in cash flow problems.

• Employers may be forced to pay heavy penalties if they are found guilty of negligence/not
enforcing safety measures.

• Workers who are temporarily/permanently employed in foreign countries are not covered.

• Domestic/Military workers are not covered.

Discriminatory actions according to COIDA

• Employers who bribe/prevent employees from reporting the accident/injury.

• Providing false information about previous, serious accidents/occupational diseases.

• Employers who do not contribute to the Compensation fund.

• Employers who do not allow claims for injuries, discriminates against injured employees.
• Employers that take too long to process claims/delay the claiming process.

• Compensation that is set off against any debt of the person entitled to the compensation.

Penalties for non-compliance with COIDA

• Businesses can be fined for refusing to lodge the claim/contravening the Act.

• Businesses can be forced to make large payments if it did not take the necessary precautions
according to the Act.

• They may be forced to pay any recovery costs required by the Compensation Fund.

• Employees may take businesses to court for not registering them with the Commissioner of
the Compensation Fund.

• If businesses are found guilty of any misconduct, they will have to pay large penalties/face
imprisonment.

Ways in which businesses can comply with the COIDA

• Businesses should provide a healthy/safe working environment.

• Register with the Compensation Commissioner and provide the particulars of the business.

• Keep records of employees' income and details of work for four years.

• Report all incidents causing death/injury/illness of employees.

• Submit returns of earnings by no later than 1 March annually.

• Levies must be paid to the Compensation Fund.

• Ensure that the premises/equipment/machinery is in good working condition.

• Allow regular assessment of the workplace by inspectors in order to determine the level of
risk their employees are exposed to.

• Employers may not make deductions for COIDA from employees' remuneration packages.

• Businesses must ensure that claims are lodged within twelve months of the date of the
accident.
 Broad Based Black Economic Employment Act/BBBEE

Purpose of BBBEE

• Enable wealth to be spread more broadly across all population groups.

• Outline areas that would give the government a platform for bringing equitable spread of
wealth.

• Allows for the development of Codes of Good Practice.

• It aims at targeting inequality in the South African economy.

Impact of the BBBEE on businesses

Positives/Advantages

• Encourages businesses to address the demands for redress/equity directly.

• Provides a variety of business codes to improve employment equity.

• A good BEE rating improves the image of the business.

• Promotes enterprise development, by developing entrepreneurial skills of PDI’s.

• Businesses that comply with BBBEE regarding the pillars will be rated high on the BEE
scorecard/may get government tenders/may attract other BBBEE business partners/-suppliers.

• Encourages businesses to address the demands for redress/ equity directly.

• Provides for human resources development through training and development.

• Promotes enterprise development, by developing entrepreneurial skills of designated people

to start their own businesses.

• Businesses will have a good overview on how it is performing in comparison to other

businesses in the rest of the country.

• By focusing on BBBEE, the business will show commitment towards the

social/education/economic developments in the community/country.

• Once rated, the business will understand how to develop BBBEE strategies that will increase
its BBBEE ratings on an annual basis.

• Fronting is discouraged, as it may lead to the disqualification of a business's entire

scorecard/BBBEE status.

• Share prices of BBBEE compliant businesses are likely to increase as they attract more
business.

• Businesses that support Small, Micro, Medium Enterprises (SMMEs), may increase their own
BBBEE ratings

• Complying with BBBEE requirements gives businesses experience/exposure to be able to

provide better employment opportunities/staff development.

Negative/Disadvantages

• Businesses that want to do business with the government must have their BEE status assessed
annually.

• Processes may lead to corruption/nepotism if not monitored properly.

• Investment/Ownership issues can cause unhappiness amongst existing shareholders/owners.

• Businesses have to go through the process of having their BBBEE compliance

measured/verified by an independent BEE verification agency.

• Provides for preferential procurement, so certain businesses may be excluded from supplying
goods/services.

• Many businesses have been disadvantaged due to BBBEE ratings as they may not be able to
meet all the scoring.

• Processes and procedures may be costly for a business as there are many legal requirements
for scoring enough points to be compliant.

• Businesses could experience large financial implications/penalties if they do not comply with
BBBEE.

• Businesses will have to spend money in areas covered by the seven/five BBBEE

pillars to obtain a good BBBEE rating.

• Investment/Ownership issues can cause unhappiness between existing

shareholders.

Discriminatory actions according to BBBEE

• Failing to implement affirmative action to meet BBBEE responsibilities.

• Promoting unsuitable people into a management position at the expense of qualified

PDP’s.

• Refusing to award tenders to black suppliers who are BEE compliant.

Penalties for non-compliance with the BBBEE

• Businesses may face imprisonment for non-compliance and fronting practices.

• The penalty could be a fine of up to 10% of the company’s annual turnover.

• A business can be banned from participating in government contracts for a period of 10 years.

• Business licenses may not be renewed] and authorisations may not be issued

• Government will cancel any contract awarded that was based on false information regarding
B-BBEE status.

• Businesses that fail to achieve at least a minimum 40% of compliance with ownership, skills
development and new enterprise and supplier development will be automatically downgraded
the by one level.

Ways in which businesses can comply with the BBBEE

• Businesses must appoint black people in managerial positions

• Businesses must sell shares to black employees/people.

• Send black people for black for skill development training.

• Outsource their services to BEE compliant suppliers.

• Implement affirmative action when making appointments.

• Develop small business /SMME’s through ESD.

• Improve the standard of living of the communities in which they operate.

 Consumer Protection Act

Purpose of the Consumer Protection Act

• Promote and protect the economic interests of consumers by providing access to information.

• Promotes fair/accessible and sustainable places for people to sell their products

• Establishes national standards to protect consumers

• Provides guidelines for better consumer information and to prohibit unfair business practices

• Promotes responsible consumer behaviour

• Promotes consistent laws relating to consumer transaction and agreement

• Establishes a National Consumer Commission (NCC)

• Ensures that consumers have access to information they need to make informed choices

• Promotes the rights and full participation of historically disadvantaged individuals as

consumers

• Ensures that consumers are not misled/deceived by suppliers of goods/services.

Impact of the CPA on businesses

Positives/Advantages

• Enables businesses to resolve disputes fairly through the National Consumer

Commission/Consumer Court/Industrial ombudsmen

• Businesses may build a good image if they ensure that they do not violate consumer rights.

• May gain consumer loyalty, if they comply with CPA.

• Businesses may be safeguarded from dishonest competitors.

• Businesses may be protected if they are regarded as consumers

• Prevents larger businesses from undermining smaller ones.

Negatives/Disadvantages

• Confidential business information may become available to competitors

• They have to disclose more information about their products and processes/services
• Businesses may feel unnecessarily burdened by legal processes

• Penalties for non-compliance may be very high

• Staff need to be trained /Legal experts need to be consulted, which can increase costs

• Many business documents need to be simplified /revamped at extra cost as consumers have a
right to receive contracts in simple/understandable language.

• Administration costs increase as legal contracts need to be worded in plain language /pitched
at the level of the consumer

• Businesses may need insurance against claims from consumers /provisions in the Act increase
risks for unforeseen claims and lawsuits

• Businesses have to replace/repair faulty items/refund money if the fault occurs within six
months after purchase.

• Supply chain management in stock levels will have to change, as defective goods have to be
replaced within six months at the request of the consumer

• Information technology systems need to be improved as the retailer must keep more detailed
records of interactions with consumers /be able to report to the National Consumer
Commission.

Discriminatory actions according to the CPA

• Denying customers proper information about the product/services.

• Varying the quality of goods when selling in different areas.

• Prioritising any consumer group over another when marketing/selling

• Charging unfair prices for the same goods and services.

• Treating customers differently based on gender/age/race

Penalties for non-compliance with the CPA

• A contract may be rendered void or a fine or term of direct imprisonment may be imposed.

• Businesses may face fines or imprisonment for a period not exceeding 10 years.

• Government agencies may conduct audits, enact fines or even dissolve your business entirely.
• Businesses will be forced to compensate consumers in line with the extent to which their
rights have been violated.

Ways in which businesses can comply with the CPA

• Disclose prices of all products on sale.

• Provide adequate training to staff on the CPA.

• Ensure that goods/services offered are standardised/of the same quality.

• Comply with the requirements regarding promotional competitions.

• Display the name of the business on all business documents, e.g. invoices/contracts.

• All agreements must provide for a five-day cooling off period.

• Comply with requirements regarding the display of information on labels/ packaging

• Provide adequate training to staff on the CPA.

• Bundling of goods/services should benefit consumers, e.g. offering a cell phone and

a tablet at a special price.

• Implement measures that will facilitate complaints, e.g. suggestion boxes.

Consumer rights of the Consumer Protection Act

Right to choose

Consumers have the right to:

• choose suppliers and/or goods.

• shop around for the best prices.

• reject goods that are unsafe/defective for a full refund.

• cancel/renew fixed term agreements.

• request written quotations and cost estimates.

Right to privacy and confidentiality

• Consumers have the right to stop/restrict unwanted direct marketing.

• They can object to unwanted promotional e-mails/telesales.

• They have the right to stop/lodge complaints about the sharing of their personal

details.

Right to fair and honest dealings

• Suppliers may not use physical force or harass customers.

• Suppliers may not give misleading/false information.

• Businesses may not promote pyramid schemes and/or chain-letter schemes

• Businesses may not overbook/oversell goods/services and then not honour the agreement.

Right to information about products and agreements/Right to disclosure and information

• Contracts and agreements should be in plain language and easy to understand.

• Businesses should display prices which are fully inclusive disclosing all costs.

• Consumers may request the unit and bulk price of the same product.

• If two prices for the same product are displayed, consumers should pay the lower price.

• Businesses should label products and trade descriptions correctly.

Right to fair/responsible marketing/promotion

• Businesses should not mislead consumers on pricing, benefits/uses of goods.

• Consumers may cancel purchases made through direct marketing within five working

days/cooling off-period.

• All information related to the country of origin/expiry dates/ingredients of the products

should be disclosed/clearly labelled.

Right to accountability from suppliers

• Consumers have the right to be protected in lay-bye agreements.

• Businesses should honour credit vouchers and prepaid services.

Right to fair/just/reasonable terms and conditions

• Businesses should provide consumers with written notices of clauses that may limit consumer
rights.
• Businesses may not market/sell goods at unfair prices.

Right to equality in the consumer marketplace

• Businesses should not limit access to goods and services.

• Quality of goods may not vary when supplied to different consumers.

• Businesses may not charge different prices for the same goods/services.

• No discrimination should occur when businesses market products and services in

different areas/places.

Right to return goods/have goods replaced/claim a refund

• Goods that are unsafe/ defective may be replaced by the supplier.

• Faulty items may be returned for a full refund.

• They may return faulty items if the fault occurs within six months after purchasing the item.

Right to complain

• Consumers may use various methods/channels to complain about poor quality

goods/services.

• They can complain via customer care desks/consumer hotlines/ombudsman etc.

Right to privacy/confidentiality

• Consumers have the right to stop/restrict unwanted direct marketing.

• They can object to unwanted promotional e-mails and telesales.

• They have the right to stop/lodge complaints about sharing personal details.

Right to fair value/good quality/safety

• Consumers may demand quality services/goods.

• They may receive an implied/written warranty.

• Cancel /renew fixed term agreements.

• To be informed about hazardous/dangerous products

• Reject goods that are not the same as the sample marketed

• Return faulty items if the fault occurs within six months after purchasing the item

Right to fair/honest dealings

• Suppliers may not use physical force/harass customers.

• They may not give misleading/false information about the product/service/ transaction.

• Businesses cannot promote pyramid/chain-letter schemes.

• Businesses may not overbook/oversell goods/services and then not honour the agreement.