Don’t make these mistakes

In a time where every employee knows their rights and CCMA-rulings in favour of employees are an everyday occurrence, many of those who head up Small/Medium Enterprises (SME) still don’t have sufficient knowledge of Labour Relations – costing them valuable time and money and, on occasion, even sinking their business.

In a press release from Nicole van Eeden from Dynamic Labour Frontiers in Little Falls, she says: “Labour Relations is a fundamental part of any business that needs to be understood very thoroughly. It is a science on its own, with systems and procedures that need to be followed to the tee when it comes to things like contracts, salary-, bonus- and Union negotiations, approval of leave, warning letters, disciplinary hearings, dismissals etc. We’ve found that too many SMEs have a very casual, reactive approach in this regard – unwittingly setting themselves up for disaster.”

Over the past 19 years, Dynamic Labour Frontiers has identified the top five mistakes that employers, especially those in the SME-arena, make:

– Drafting of employment contracts, service agreements, notices and warnings that contain incorrect terminology and/or don’t meet all necessary legal requirements. – Not following the prescribed legal procedures, and failing to be consistent, when issuing warning letters. – Failing to have a well-planned, professionally documented disciplinary hearing prior to dismissal.

– Attempting to represent themselves at hearings, Bargaining Councils, the CCMA and Labour Court without sufficient knowledge – underestimating the intricacies, and possible pitfalls, of labour law.

– Not efficiently monitoring and managing overtime worked by employees, often resulting in a breach of the legal limit for overtime hours and/or short payment of wages.

“Employers are most prone to suffer financial loss when they either don’t know all the points on which an employee can contest their methods, or when they miss certain key points in which labour law is geared to protect employers as well,” says Van Eeden. “So, for example, an employee who didn’t report for duty for 3 months – without any communication to her employer – was dismissed, with someone new appointed in her place. Upon her eventual return – citing ‘tormenting by her ancestors’ as reason for her absence – she contested the dismissal, resulting in a ruling in her favour, with full remuneration and reinstatement, simply because all the correct procedures weren’t followed by her employer.” Lack of knowledge, inconsistency, incomplete detail and the resulting loopholes cause considerable frustration for many small business owners, whilst, in actual fact, many cases can be dealt with fast and efficiently during Conciliation and do not have to proceed to Arbitration.

Van Eeden concludes: “Not all small and medium-sized businesses have the capacity to employ a labour specialist, but an investment in professional advice and assistance from a company specialising in labour law, through what is a very affordable monthly fee, could save you time, money or even your business.”