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18
GRAANGIDS
2016
GRAIN GUIDE
Manage labour risk proactively
Every business aims to be profitable and sus-
tainable. Labour legislation is non-negotiable,
therefore it is important for employers to address
labour as a business risk in a proactive manner.
It is important to take the role labour plays in the
work environment into account. Below are a few
guidelines for proactively managing labour risk.
1. Registration
All employers must register with the Compensa-
tion Commissioner and all occupational injuries
must be reported to ensure that employers
and employees are compensated accordingly.
Employers must also register with the Unemploy-
ment Insurance Fund (UIF) and have a further
obligation to register all employees who work
more than 24 hours a month with the UIF and to
ensure that the prescribed amounts are deducted
and paid over. During an inspection by the
Department of Labour the inspector will always
check on this.
2. Employment contracts
The employment contract is the foundation of
the service relationship between the employer
and the employee and contains the terms and
conditions agreed upon. Terms and conditions
of an oral agreement cannot always be proven.
A written agreement (the employment contract)
therefore creates security and clarity between
the employer and the employee and the risk of
disputes regarding the conditions of employment
is reduced. The employment contract is essential
for managing labour relations in the workplace.
• Basic requirements that are prescribed by
labour legislation:
– Employer’s particulars
– Employee’s particulars
– Commencement date
– Remuneration
– Working hours
– Leave
– Job description
– Statutory notice
– Statutory deductions
– Type of contract (fixed term or permanent)
• Additional clauses to manage labour risk
proactively:
– Retirement age
– Additional deductions
– Alcohol testing
– Trial period
– Medical testing
– Cameras in the workplace
– Searching of personal belongings
– Deduction of training costs when the
employee resigns
– Short time
– Daily rest period
– Confidential information
– Restraint of trade agreement
3. General documentation
The management of labour relations has an
administrative component that is extremely im-
portant, particularly when a dispute arises. Make
sure the following are in place and that you keep
copies of the information for three years.
• A
personnel file
must contain the following
documentation: an employment contract, leave
forms, payslips, disciplinary records, for in-
stance warnings issued for misconduct, a copy
of the employee’s identity document/passport/
work permit and the employee’s personal
information and contact details. Employ-
ers should make sure that this information is
updated regularly.
• Labour legislation requires all employers to
issue payslips to employees when wages are
paid. The following information must appear
on the
payslip
:
– The name and address of the employer
(business)
– The name and surname and job designation
of the employee
– Period of payment
– The wage and rate of the employee
– Hours worked – normal work hours, over-
time, Sunday time and hours worked on
public holidays
– Any other payment arising from the farm-
worker’s employment
– Deductions
– The employer’s registration number with the
Unemployment Insurance Fund (UIF) and
the employee’s contribution
– The employee’s net salary
We encourage employers to address labour
risk proactively and also indicate the following