Small business and the labour law

Written by lvan lsraelstam, Chief Executive of Labour Law Management Consulting.

Three new labour laws are bedevilling small businesses and are thus discouraging employment. These are the Labour Relations Amendment Act (LRAA),

the Basic Conditions of Employment Amendment Act (BCEAA) and the Employment Equity Amendment Act (EEAA). The new LRA Amendment Act, effective from 1 January 2015, is the most damaging for small business.

This is because:

n Labour broker employees are deemed to be the employees of the broker’s clients for purposes of the LRA unless the placement period is shorter than

three months or the employees are hired to replace permanent employees who are temporarily absent

n Labour broker employees are now able to force the business at which the broker employees are assigned to employ them permanently and to sue the

business at the CCMA, Bargaining Council and Labour Court instead of suing the labour broker

n Labour broker and other temporary employees are able to claim full employment benefits from the businesses that use their labour

n Labour broker employees are able to hold strike protests on the premises of the businesses that use their labour

n The Labour Court will be empowered to make orders for the suspension of the use by businesses of replacement labour

n Employees engaged for a fixed term can claim dismissal on expiry of the term where they have a reasonable expectation of permanent employment

n The dismissal of employees for reason of their refusal to accept a change in their employment conditions is now prohibited.

n Employers may not employ staff on fixed term contracts for longer than three months unless the nature of the work for which the employee is engaged is of

a limited or definite duration. The employer’s failure to prove the temporary nature of the job renders the employment relationship permanent.

While these amendments and many others apply to all types of employers, certain smaller and newer employers are exempt from some of these laws.

In view of the above small businesses should:

• Not use labour brokers before obtaining advice from a reputable labour law expert

• Employ temporary employees only if the work itself is temporary and a labour law expert okay’s the employment

• Budget very carefully for the full cost of employing temporary and part-time employees by including the cost of employment benefits in the package calculation

• Avoid giving temporary employees the expectation that they may be made permanent

• Avoid changing the terms and conditions of employees without their written and signed agreement

• Obtain expert advice on preparing for strikes.

Details: 011 888 7944 or 082 852 2973 or

via e-mail address: ivan@labourlawadvice.co.za.

Go to: www.labourlawadvice.co.za

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