Towards the end of last year, the Department of Labour hired 500 extra labour inspectors in Johannesburg alone.
And what's on their agenda? To catch as many companies as possible who aren't complying with the over 70 changes to the labour laws that happened in the last few years!
The scary part? A labour inspector can go into any workplace at any reasonable time to check and enforce compliance with labour law, without a warrant or notice! And he can ask you for any information when it comes to employment laws.
But generally, there are five areas he'll check... So use these five steps to make sure he doesn't have a reason to go delving into your entire company history and start probing employees for any information that will give him a reason to dish out fines that could cripple you...
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Not displaying summaries of the EE Act and BCEA in the workplace is punishable by law - a labour inspector could order you to stop working IMMEDIATELY!
It DOESN'T matter how many employees you might have! 1, 5 or 1000, the Labour Laws are crystal clear.
Either you follow them and everything is OK for you and your business, or you don't follow them and you along with your employees will bear the consequences.
Do you feel like taking a chance?
Avoid fines from the Department of Labour by displaying this information…
Five steps to help you prepare for an inspector when he comes knocking…
Step #1: Make sure you display a statement of employee rights
You have to display a summary of employee's rights in terms of the Basic Conditions of Employment Act (BCEA)
. And you need to put it where all employees can see it.
And if the inspector is there to look at your company for BCEA issues, he'll probably also look for the Employment Equity Act summary
. So, make sure you have both on display in your workplace.
Step #2: Have records of all employees
Make sure you have a record of each employee either electronically or on file. Keep this for three years from the date of the last entry in the record.
Each record must have each employee's:
· Name and occupation;
· Working hours;
· Date of birth, if under the age of 18 years; and
· Any other prescribed information as set by the industry your business is in.
Step #3: Provide written particulars of employment
You must give written details of employment to an employee as soon as they start working for you. You have to keep these details for three years after termination of the employee's employment. Inspectors will usually ask for employee particulars, or files, randomly. So don't only have a few 'perfect' files for them to inspect! Keep them all up to date!
Get your complete employment contracts and documents here…
Keep reading for the next two steps in helping you prepare for an inspector when he comes knocking…
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Don't leave it until the DoL comes knocking, make sure your employee personnel files are up-to-date and comply with the BCEA
From personal details of the employee, to CVs, application forms, promises to pay back company money, disciplinary records, right down to resignations and termination letters – you must keep this information on file!
And, most of the time, you'll only find out when it's too late that you don't have the right information on file.
Luckily, you can solve all this by putting a comprehensive Employee Personnel File in place…
And today, I'm going to ensure you have 61 of the most crucial documents, templates and contracts in place
so you never have to worry about an inspector finding you're not complying with the BCEA ever again!
Get your copy now
Two more steps to help you prepare for an inspector when he comes knocking…
Step #4: Keep information about remuneration
The three most common types of information you'll need to show is that you:
· Pay remuneration in Rands daily, weekly, fortnightly, or monthly;
· Pay in cash, by cheque or direct deposit into a bank account designated by the employee;
· Ensure payment happens no later than seven days after the end of the period for which remuneration is payable.
Step #5: Comply with legislation
Make sure you follow these three acts:
Unemployment Insurance Act (UIA)
You have to give the Unemployment Insurance Commissioner information about your employees. It doesn't matter how much they earn or what position they're in.
Compensation of Occupational Injuries and Diseases Act (COID Act)
As a business in South Africa, you have to register with the Commissioner. You'll have to give details of your business and any other information the Commissioner may ask for (Section 80 of the COIDA)
Employment Equity Act (EEA)
If you're a designated employer
, he will also makes sure you're complying with EE!
So there you have it… Follow these five simple steps and you can pass your inspection with flying colours!
There are four instances an inspector cannot give you a compliance order… We cover them in chapter I07: Inspectors of the Labour Law for Managers
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