Chapter 6
Related Sections
1
INTRODUCTION
2
THE CONTRACT OF EMPLOYMENT
3
How can a contract of employment be used?
4
Changing the contract of employment
5
Types of contracts: Indefinite and Fixed-term contracts
6
Casual employees
7
‘Zero-rated’ contracts
8
Volunteers
9
Differential wage
10
Bonus pay
11
Long service awards
12
Job references
13
LAWS ABOUT TERMS AND CONDITIONS OF EMPLOYMENT
14
Wage regulating measures
15
How do you know which law applies to an employee?
16
BASIC CONDITIONS OF EMPLOYMENT ACT (BCEA)
17
Who is covered by the Basic Conditions of Employment Act?
18
Temporary Employment Services (TES)
19
Variation of basic conditions
20
Individual contract of employment
21
Collective bargaining
22
Sectoral Determinations
23
Ministerial exemptions
24
Prohibited employment
25
Enforcement of the Basic Conditions of Employment Act (BCEA)
26
Summary of provisions in the Basic Conditions of Employment Act (BCEA)
27
MINIMUM WAGES
28
Summary of provisions in the National Minimum Wage Act (NMWA)
29
COLLECTIVE AGREEMENTS
30
Workplace-based collective agreements
31
Bargaining Council Agreements
32
SECTORAL DETERMINATIONS
33
How are Sectoral Determinations made?
34
Enforcement of a Sectoral Determination
35
Settling disputes under a Sectoral Determination
36
Summary of the Sectoral Determination for Farm Workers
37
Summary of the Sectoral Determination for Domestic Workers
38
DEREGULATION
39
OTHER LAWS THAT APPLY TO TERMS AND CONDITIONS IN THE WORKPLACE
40
Employment Equity Act (EEA)
41
The Occupational Health and Safety Act (OHSA)
42
Code of Good Practice on the Prevention and Elimination of Harassment in the Workplace
43
The Merchant Shipping Act
44
DISPUTES AND WAYS OF SETTLING DISPUTES
45
What is a dispute?
46
The Labour Relations Act (LRA)
47
Who is an employee?
48
Unfair Labour Practices
49
DISMISSALS
50
What is a dismissal?
51
Automatically unfair dismissals
52
When is a dismissal fair or unfair?
53
Dismissal for misconduct
54
Dismissal for incapacity
55
Retrenchment or redundancy dismissal
56
What steps can be taken if there is an unfair dismissal?
57
SOLVING DISPUTES UNDER THE LRA
58
Conciliation by the CCMA or Bargaining Council
59
Arbitration by the CCMA or Bargaining Council
60
Adjudication by the Labour Court
61
TAKING INDUSTRIAL ACTION
62
When is industrial action not permitted?
63
What procedures must be followed before industrial action is protected?
64
If an employer unilaterally changes conditions of employment
65
Employee’s and employer’s rights in protected industrial action
66
Trade unions
67
SOCIAL SERVICES AND BENEFITS IN THE WORKPLACE
68
Unemployment Insurance Fund
69
COMPENSATION FUND
70
When can an employee claim compensation?
71
Who can claim compensation from the Fund?
72
Who contributes to the Fund?
73
When will the Fund not pay compensation?
74
Occupational diseases and injuries
75
What types of compensation payment are made?
76
Steps to claim disability
77
How is the compensation money paid?
78
Objections and appeals
79
EMPLOYEE’S TAX
80
What is employee’s tax?
81
When must an employee pay tax?
82
How much tax do you pay?
83
What information must you give to employers?
84
Rebates
85
Tax on bonus pay and retrenchment pay
86
Part-time work and casual work
87
Tax assessments
88
PENSION AND PROVIDENT FUNDS
89
How does a pension or provident fund work?
90
Types of funds and benefits
91
Bargaining Council funds
92
Complaints about payments from pension funds
93
The Pension Funds Adjudicator
94
The Two-Pot Retirement System
95
MEDICAL AID SCHEMES FOR EMPLOYEES
96
Advantages and disadvantages of Medical Aid Schemes
97
Medical Schemes Act
98
SKILLS DEVELOPMENT ACT
99
The National Qualifications Framework (NQF)
100
The Skills Development Levy-Grant Scheme
101
Skills Development Facilitators
102
PROBLEMS
103
Problem 1: Money is deducted from an employee’s wages
104
Problem 2: Employee wants to claim notice pay and leave pay
105
Problem 3: Employee is paid below the minimum wage
106
Problem 4: Dismissed employee wants the job back – how to apply for reinstatement or compensation
107
Problem 5: Retrenchment
108
Problem 6: Employee dismissed for being under the influence of alcohol on duty (no previous record of alcohol abuse)
109
Problem 7: Employee dismissed for being under the influence of alcohol while on duty (Employee is suffering from alcoholism)
110
Problem 8: Contract employees are dismissed before the contract is due to terminate
111
Problem 9: Contract employees are not paid overtime
112
Problem 10: Part-time employee is not paid sick leave
113
Problem 11: Fixed-term contract has not been renewed
114
Problem 12: Application for UIF benefits is too late
115
Problem 13: Employer does not register employee with the Unemployment Insurance Fund
116
Problem 14: Failing to sign the Unemployment Register
117
Problem 15: Long delay in paying Compensation
118
Problem 16: Employee does not get the correct amount of compensation money
119
Problem 17: Injured employee is off work and is not getting paid
120
Problem 18: Employee is injured on duty and loses the job
121
Problem 19: Employee’s compensation has been refused
122
Problem 20: Employees develop an occupational disease
123
MODEL LETTERS AND FORMS
124
Model Contract of Employment
125
Letter of demand to employer for reinstatement
126
Letter of demand to employer for notice and leave pay
127
Letter to Department of Employment and Labour about a notice and leave pay claim
128
Letter of appeal against the refusal to pay UIF
129
Letter to UIF because benefits have not been paid
130
Letter to Compensation Commissioner asking whether the accident was reported
131
Letter to Compensation Commissioner asking for reasons for the delay in paying
132
How to write a complaint to the Pension Funds Adjudicator
133
LRA Form 7.11 Referring a dispute to the CCMA for resolution
134
Compensation Form WCL3
135
CHECKLISTS
136
Checklist for a labour problem
137
Checklist to prepare for arbitration
138
Checklist to prepare a claim for reinstatement
139
Checklist for problems about UIF
140
Checklist for compensation problems

Conciliation by the CCMA or Bargaining Council

Conciliation is a process to bring the two sides in a dispute together after they have reached a deadlock. In conciliation, an independent and neutral third party is used to mediate between the two sides. Under the Labour Relations Act, the conciliator/ mediator is a commissioner from the CCMA or Bargaining Council.

HOW TO REFER THE DISPUTE TO THE RIGHT BODY

Find out whether there is a Bargaining Council covering the sector that the employee works in. If there is a Bargaining Council, phone that Council and find out the steps you should take to refer the matter for conciliation. If there is no Bargaining Council, the dispute must be referred to the Commission for Conciliation, Mediation and Arbitration (CCMA) for conciliation. Do the following:

  • Fill in form LRA 7.11. The application can be done online on the CCMA website: https://cmsonline.ccma.org.za/Defaiult.aspx
  • Send a copy of the form to the employer, by e-mail, fax, registered mail or personal delivery. If the application was done online it will be sent to the email address of the employer.
  • Send a copy to the CCMA, by e-mail, fax, registered mail or personal delivery. Attach proof that you have sent a copy to the employer, for example a fax transmission slip, registered mail slip, or affidavit confirming personal delivery of form LRA 7.11. If the application was done online it will automatically be sent to the CCMA.

If the employee does not want conciliation and arbitration (known as ‘Con-Arb) to take place on the same day with the same commissioner, they must note this in the appropriate space on the dispute Form 7.11. (See LRA Form 7.11)

APPLYING FOR CONDONATION IF THE REFERRAL IS LATE

If more than 30 days have passed since the dismissal (or 90 days if it is an unfair labour practice) took place, the employee will have to apply for condonation, which is like an extension of the deadline and an application for late submission. If a Bargaining Council will deal with the matter, he or she will need to make an application for condonation and submit this application together with the LRA 7.11 form.

If the CCMA deals with the matter, the employee can apply for condonation in form LRA 7.11, or the CCMA will ask them to fill in condonation forms if they didn’t do it on form LRA 7.11. If the application is late, the CCMA will not process the referral if the employee has not made an application for condonation together with the referral of LRA 7.11 form.

Condonation may be granted if the employee can give good reasons for being late with the application. When applying for condonation the employee should focus on the following:

  • ‘Degree of lateness’ of the application (how many days/weeks/months late is it) and an explanation of why the application is late
  • The prejudice to the parties
  • The likelihood of success of the case
  • The measure of ‘public interest’ that applies if the case goes ahead (only if this is appropriate)

Application for condonation must be in the form of an affidavit. (See Affidavits)

THE CONCILIATION MEETING

The commission will arrange a venue and time for the conciliation, and will inform both parties. At the conciliation meeting, the commissioner meets with the two parties to the dispute to find ways to settle the dispute to everyone’s satisfaction. The meeting is conducted in an informal way and the commissioner can meet the parties together or separately, as often as is needed. The commissioner has the power to subpoena any person to attend the meeting.

The commissioner must try to resolve the dispute within 30 days of it being referred to the CCMA or Bargaining Council. The employee/s and employer are free to agree to any solution to settle the dispute at a conciliation meeting.

A certificate will be issued by the commissioner at the end of the meeting to say whether the dispute has been settled or not. If 30 days have expired from the date of referral to the CCMA and no resolution has been made, the employee can ask for a Certificate of Non-Resolution from the CCMA and to proceed to fill in an application form for Arbitration.

WHO CAN REPRESENT EMPLOYEES AND EMPLOYERS IN A CONCILIATION MEETING?

Employees can be represented by a co-employee, or a trade union office bearer or official. If the dispute does not concern alleged unfair dismissal for misconduct or incapacity either party can be represented by an attorney. The employer can be represented by an employee of the business (like the Human Resources Manager) or by a representative of an employer’s organisation, but not an attorney.

SUCCESSFUL CONCILIATION

If the conciliation is successful, an agreement is reached which both parties must follow. If they do, the matter is resolved and ends here.

WHAT HAPPENS IF THE CONCILIATION AGREEMENT IS NOT COMPLIED WITH?

If either party breaks the agreement, the other party may apply to the CCMA to have the agreement made into a court order. These are the steps to follow:

  • Obtain the application forms from the Registrar of the Court and fill them in. Attach a copy of the agreement and an affidavit to the application. The affidavit must state:
    • When the dispute was referred for conciliation
    • When the conciliation meeting was held
    • When the agreement was made
    • What happened after the agreement was made
    • Whether demands have been made
    • Whether the employee has kept their part of the agreement
  • Serve the application on the employer
  • File the application with the Registrar of the Court together with proof that you have served notice on the employer

UNSUCCESSFUL CONCILIATION

If the two parties cannot reach an agreement, or the employer refuses to attend the conciliation meeting, the commissioner will issue a certificate stating that the matter has not been resolved. The certificate will be sent to both parties by the commissioner’s office. Either party can then refer the matter for arbitration to the CCMA or adjudication at the Labour Court, depending on the nature of the dispute. Disputes over these matters are referred to the CCMA or Bargaining Council for arbitration:

  • Claims for Unfair Discrimination if the employee earns under the threshold prescribed in the BCEA
  • Unfair labour practices that do not involve discrimination
  • Dismissals for acts of misconduct (the employer says the employee did something wrong)
  • Dismissals for incapacity (the employer says the employee can’t do the work properly)
  • Severance pay
  • Disputes concerning organisational rights for a trade union
  • Alleged unfair retrenchment where the retrenchment involved an individual employee.
  • Breach of a collective agreement
  • Disputes over the granting of organisational rights

Disputes over these matters are referred to the Labour Court for adjudication:

  • Disputes that involve discrimination, where the employee earns above the earnings threshold (R21 198 per month)laid down in the BCEA.
  • Retrenchments
  • Automatically unfair dismissals (See Automatically unfair dismissals)

If the parties believe that it is going to be too expensive to take the matter to the Labour Court, they can agree to have the matter arbitrated by the CCMA or Bargaining Council, even if the matter falls within the jurisdiction of the Labour Court.