FAQ

Frequently Asked Questions

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  1. When is a company a designated employer?
    If a company’s annual turnover is above the “subsector turnover indicator” as indicated below AND/OR If a company has more than 50 employees.
  2. How does the Employment Equity work?
    According to the new Employment Equity Act 55 of 1998 as amended, all designated employers have to submit Employment Equity Reports every year from September.
  3. Who must pay SDL?
    SDL is due to SARS by registered employers. If an employer expects that the total salaries will be more than R500 000 over the next 12 months, that employer becomes liable to pay SDL monthly and submit a Workplace Skills Plan and Annual Training Report (WSP/ATR) annually.
  4. Why Labour Assistance?
    Every company needs access to sound legal advice. Labour assistance is something all companies can benefit from having to ensure both procedural and substantive fairness.
  5. Why should a company give employees a job description?
    Job descriptions form the basis of an effective performance management system. Employees need to be given feedback on how they are doing and if they are meeting your expectations or not. Alternatively, if their work is not acceptable, it would be difficult to argue and prove that there was a misunderstanding. Employees can be tasked with additional responsibilities and would be expected to carry them out, provided they are not “unreasonable.”
  6. Why should a company have policies and procedures?
    In order to properly manage employees, it is important to have a set of rules in the business that all employees are aware of and adhere to. It provides a standardised way of maintaining discipline and effectiveness in the workplace. It also assists during disciplinary hearings in proving that there were existing rules that an employee had to adhere to.
  7. Why should my employees have an employment contract?
    Because it is a legal requirement, and to avoid disputes regarding terms and conditions of employment.
  8. What is the purpose of the Employment Equity Act?
    Refer to Chapter 1, Section 2: Purpose of the Act. It endeavours to: Eliminate unfair discrimination in employment and, Implement positive measures to redress the disadvantaged in employment experienced by “Designated Groups” in the past.
  9. How do I avoid losses at the CCMA when I dismiss an employee?
    By having a comprehensive disciplinary code and conducting a procedurally and substantively fair hearing. An unfair dismissal can result in a costly award at the CCMA or Bargaining Council of up to 24 months’ worth of salary.
  10. What is the difference between an unfair dismissal and an automatic unfair dismissal?
    An unfair dismissal is one that is affected due to an unfair reason or procedure. An automatic unfair dismissal is a dismissal in breach of the employee’s fundamental rights e.g. ethnicity, religion, sexual orientation.