The impact of recent legislation on businesses

• Labour Relations Act promotes labour peace, democracy & social justice
• Labour Relations Act

  1. Promote collective bargaining

  2. Mediate & provide simple resolution processes

  3. Promote employee participation through workplace forums

  4. Promote simple procedures for trade union & employer organisation registrations

  5. Promote fair labour
• Advantages of Labour Relations Act

  • Healthy relationship between employer & employee
  • Protection for employees that are on a lawful lockout
  • Inexpensive & fast to settle labour disputes
  • Employers can claim for losses due to illegal strikes
  • Workplace forums
  • Fair dismissal procedures
• Disadvantages of Labour Relations Act

  • Labour disputes is a costly process because labour consultants are employed
  • Labour disputes & bargaining councils can disrupt business productivity
  • Employees may be given too much power than necessary
  • Strikes lower productivity
  • Unable to dismiss employees without proper protocol (following the correct procedure)
• Dismissals are considered unfair in Labour Relations Act when:
• Non-compliance in Labour Relations Act

  • Unfair or illegal dismissal of employees
  • A new employer cancelling contracts once the business is sold
  • Forbidding employees from partaking in legal strikes
  • Using casual or independent workers while employees are striking
  • Breaching a collective agreement contract
  • Forbidding employees from forming a workplace forum
  • Preventing union representatives from participating in trade union activities during their time off
• Employees' rights in Labour Relations Act

  • Fair treatment & labour dispute processes
  • Participate in trade unions
  • Participate in a legal strike
  • Take time off, with pay
  • Form workplace forums
• Employers' rights in Labour Relations Act

  • Discipline, dismiss or retrench employees in a legal manner
  • Participate in founding an employer’s organisation
  • Not pay employees for the duration of the legal strike
  • Implement a lawful lockout
• Skills Development Act (SDA) aims to develop skills, encourage businesses to improve new & current worker’s skills, invest in education & training, readdress the inequality of the past, improve job prospects for disadvantaged individuals, and provide a systematic implementation of strategies on a national sector & workplace basis
• Compliance requirements in Skills Development Act (SDA) for businesses

  • Must be registered with SARS
  • Must pay the Skills Development Levy
  • A skills development facilitator must be appointed for 50 + employees
  • Assess the skills of employees
  • Provide an opportunity for employees to improve their skills
• Non-compliance consequences in Skills Development Act (SDA)

  • Not paying the Skills Development Levies
  • Not registering
  • Not submitting documents
  • Providing inaccurate information on documents
• Advantages of Skills Development Act (SDA) on businesses

  • Increases the number of skilled employees
  • Business productivity is improved
  • Employees are skilled & empowered through training programmes
  • The global competitiveness of South Africa increases
  • Investments in education & training increases
• Disadvantages of Skills Development Act (SDA)

  • Implementing the SDA is time-consuming & expensive
  • The SDA becomes a financial burden on businesses that are struggling financially
  • Difficulty controlling or implementing the Act
  • Businesses with a payroll of over R500 000 can claim the SDA
• Employment Equity Act aims to promote equal opportunities for all, fair treatment, ensure equal representation of different population groups, and affirmative action to readdress the inequalities of apartheid
• Employment Equity Act

  1. Eliminate unfair discrimination by implementing new policies

  2. Take active steps to make the workplace an inclusive environment

  3. Retain & employ people from design
• Employment Equity Act prohibits discrimination
• Employment Equity Act requires adhering to the EEA
• Employment Equity Act

  1. Eliminate unfair discrimination by implementing new policies

  2. Take active steps to make the workplace an inclusive environment

  3. Retain & employ people from designated groups

  4. Specify and implement Affirmative Action measures by implementing an employment equity plan

  5. Submit the employment equity plan to the Department of Labour

  6. No medical testing allowed on employees unless justified
• Employment Equity Act promotes equal opportunities & fair treatment in the workplace
• Employment Equity Act readdresses the inequalities of the past through Affirmative Action
• Employment Equity Act motivates workers
• Employment Equity Act prevents unfair discrimination
• Employment Equity Act disadvantages include businesses not always making the most suitable appointment due to the employment equity quota, inexperienced workers decreasing productivity, diversity in the workplace leading to conflict & unhappiness, and open positions remaining available for a long period of time if a suitable Affirmative Action candidate hasn't been sourced
• Employment Equity Act requires submitting a compliance certificate
• Broad-Based Black Economic Empowerment Act (BBBEE) aims to correct the inequalities of the past, promote new opportunities for disadvantaged groups, distribute wealth evenly among disadvantaged communities, encourage black people to participate in the workplace, increase job opportunities for black people, and promote equal access to government services & businesses without aiming to remove wealth away from white people
• Broad-Based Black Economic Empowerment Act (BBBEE)


  1. Increase the number of management positions for black employees

  2. Promote skills & development to improve their skill level

  3. Use suppliers that comply with the BBBEE standards

  4. Invest money in the communities through CSI programs
• 5 Pillars of BBBEE - Ownership

  1. Include black people in shareholding, partnerships & franchises

  2. Encourage black investors to invest in big companies & share ownership

  3. Provide opportunities for black people to become owners/entrepreneurs
• 5 Pillars of BBBEE - Management & control

  1. Implement transformation at all levels

  2. Appoint black people in senior executive positions & management

  3. Involve black people in the decision-making process

  4. Represent black females in management
• 5 Pillars of BBBEE - Enterprise & supplier development (ESD)


  1. Create jobs

  2. Identify black owned suppliers that supply goods & services

  3. Outsource services to BBBEE compliant suppliers

  4. Support & invest in black owned SMMEs
• 5 Pillars of BBBEE - Skills Development

  1. Engage black employees in skill development initiatives

  2. Provide learnerships & learning programmes to black employees

  3. Contribute 1% of the business's payroll to fund the skills development programmes
• Broad-Based Black Economic Equity (BBBEE) non-compliance consequences include fines, cancellation of false information, prohibition from government contracts, and denial of business license renewals & authorisations
• Broad-Based Black Economic Equity (BBBEE) advantages include skilled employees, businesses with high scorecards receiving government tenders, empowerment of previously disadvantaged employees, improved business image, competitive advantage, and encouragement for previously disadvantaged groups to start their own businesses
• Broad-Based Black Economic Equity (BBBEE) disadvantages include current shareholders being unhappy with new investment & ownership issues, large penalties imposed, businesses needing to be compliant for government tenders, and spending a lot of money to comply with the 7 pillars of the BBBEE