Where employees are retrenched the Basic Conditions of Employment Act (BCEA) requires employers to pay the retrenchees severance pay of at least one week’s remuneration per year of completed service. It is stressed that the retrenchees are entitled to such severance pay in addition to their normal remuneration and benefits for time worked/work done, leave pay, notice, retirement fund withdrawal benefits and any other amounts due.
The statutory requirement for the payment of severance pay covers only cases where the employment is terminated due to the operational requirements of the job (better known as retrenchment). That is, the BCEA does not require the payment of such severance pay in cases of resignation, retirement, death, expiry of an employment contract, dismissal for misconduct, poor performance, illness or other reasons. However, the law does require such severance pay for longer term limited duration contracts in some cases.
The only exception to the requirement to pay severance pay to retrenchees is where the employees unreasonably refuse an offer of alternative employment. What is meant by the term “unreasonably refuse” in not entirely clear because the term ‘unreasonable’ is subjective. That is, it is very likely that an employer would consider the offer of a lower post to a retrenchee to be fair but an employee who might stand to get a big retrenchment package may believe that refusing a demotion is very reasonable. The BCEA neither defines what is ‘reasonable’ nor provides guidelines for determining whether a refusal of alternative employment is unreasonable. It is therefore left to employers, employees and trade unions to fight this out based on their own viewpoints. It is also up to the CCMA, bargaining councils and courts to develop their own interpretations of this provision.
BY Ivan Israelstam, Chief Executive of Labour Law Management Consulting. He may be contacted on (011) 888-7944 or 0828522973 or on e-mail address:
The far reaching effects of prolonged strikes raise the question of how strikes can be prevented. The consequences of strikes can include:
However, preventing strikes is difficult because the Labour Relations Act (LRA) gives employees the right to strike. While this effectively prevents employers from imposing outright bans on strikes the LRA itself limits the right to strike. Section 65(1) of the LRA states that “No person may take part in a strike or a lock-out or in any conduct in contemplation of a strike or lock-out if –
Read more: Strikes can be prevented through private arbitration
Self-awareness is one of the core dimensions of Learning Agility. Here’s how to develop your Self-awareness skill, which has a positive effect on all other areas of your Learning Agility, both at work and in your personal life.
If you don’t know your level of Self-awareness, you can find out by participating in our South African Learning Agility in HR study. Participating allows you to anonymously receive your Learning Agility results, which you can then use for personal development. Click here to find out more and test your agility.
What is Self-awareness?
Self-awareness implies being aware of your own thoughts, behaviours and the effects thereof on others. The more self-aware you are, the more likely you are to recognise your own strengths and development areas.
Self-awareness is a core element of your overall Learning Agility. Your level of awareness indicates your ability to reflect on your own behaviour, criticise your own performance when necessary, and recognise your development needs. Therefore, the higher your Self-awareness, the higher your agility overall.
Read more: Develop your Self-awareness to become more learning agile
BY Ivan Israelstam, Chief Executive of Labour Law Management Consulting. He may be contacted on (011) 888-7944 or 0828522973 or on e-mail address:
Section 194 of the Labour Relations Act (LRA) allows arbitrators and judges to grant employees compensation for unfair dismissal where reinstatement is not appropriate.
A compensation order is one that requires the employer to pay the employee an amount of money in recompense for unfair dismissal or an unfair labour practice.
An order for compensation at the CCMA, bargaining council or Labour Court is not intended as an order for damages but merely as a payment made to ‘console’ the employee for the loss of a right (the right not to be unfairly dismissed). As a result the calculation of the compensation amount is not required by the LRA to be based on any specified criteria, rules or guidelines except that the amount must:
Judges and arbitrators have a very wide discretion in view of the fact that the term “fair and equitable” is itself not defined and is open to interpretation.
In Hoffman vs SA Airways (CLL Vol. 15 No. 3 October 2005) the Court said that
This year, data will become an enabling resource for Human Resources (HR) and Payroll departments to fundamentally change how these critically important components operate inside a business. The result will be more engaged employees that help drive organisational growth.
Ian McAlister, General Manager of CRS Technologies, says that even though many companies consider HR and Payroll departments a necessary evil that keeps the cogs in the machine running, this will change thanks to the benefits data will unlock.
“It has become far too easy to view HR and Payroll as a grudge component in organisational strategy when the likes of artificial intelligence (AI), augmented reality, cloud computing, connected devices, and the like are more exciting from a perception perspective. Yet, without these departments, no company can hope to make any inroads with future-forward technology. In some respects, HR and Payroll provide the bedrock on which the modern business is built.”
Overcoming compliance concerns
However, before one can hope to capitalise on data, HR and Payroll must remain cognisant of regulatory affairs and the evolving compliance landscape. The adoption of the Protection of Personal Information Act (Popi) and how organisations should manage the personal data of customers will become even more critical this year.
Read more: Data to provide new opportunities for HR and Payroll
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