BUSINESS EDGE
SERR Synergy
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This communication highlights the latest statutory amendments, enactments, case law, notices, and ancillary developments relevant to the SERR Synergy legal compliance products and services.?
FROM THE DIRECTOR'S DESK
Compliance is costly but non-compliance can be even more costly.
Our bi-monthly Business Edge is not only intended to inform business owners of new legislative developments that may protect businesses against the risk of non-compliance, but also serves strategic purposes. Compliance requirements could open up new business avenues or facilitate the adjustment and alignment of current business operations.?
With the recent national elections in May 2024, compliance will increasingly be influenced by political policy as the political landscape evolves. The changes that are expected to influence compliance in the short term relate specifically to so-called “pro-poor” or “pro-previously disadvantaged” policies. These policies will influence BEE-related legislation such as the Employment Equity Act (EEA) and Broad-Based Black Economic Empowerment (B-BBEE) legislation, coupled with government’s Preferential Procurement Regulations.
It is expected that the President will soon after the elections, sign the new EEA into law, which will also impact B-BBEE legislation. The new EEA will pave the way for the introduction of targets for the employment of Black people in professional and managerial positions. Those doing business with government will immediately feel the effect of this new legislation as the EEA will be enforced by issuing businesses with compliance certificates to qualify for state contracts. These EEA certificates are required over and above B-BBEE affidavits and certificates.
SERR Synergy will keep businesses informed about these and other compliance requirements and provide advice on how best to manage and benefit from these amendments within the overall growth strategy of a business.
Gideon Gerber | Director?
EMPLOYMENT EQUITY
President Ramaphosa signed the Employment Equity Amendment Act, 2022 (Act No. 4 of 2022) (EEAA) into law in April 2023; however, the effective date is yet to be determined by the President. Only once the commencement date has been established will the Minister of Employment and Labour be able to set employment equity targets for economic sectors, as well as regions where transformation is lagging.?
In recent developments, the Minister of Employment and Labour published newly revised Draft Regulations on Proposed Numerical Targets in Government Gazette No. 50058 dated 1 February 2024 for public comment. Interested parties had 90 days (i.e. until 2 May 2024) to submit their comments to the designated department officials indicated in the Government Gazette.
In the meantime, until the President has proclaimed the commencement date for the EEAA and finalised the Regulations on Proposed Numerical Targets, the status quo will be maintained.
NATIONAL MINIMUM WAGE AND EARNINGS THRESHOLD FOR 2024
The Minister of Employment and Labour announced the amended National Minimum Wage and declared 1 March 2024 as the date on which the amendment would take effect.
For each ordinary hour (or normal hour) worked an employee, including farm and domestic workers, will be entitled to R27,58.
Workers employed on an expanded public works programme are entitled to a minimum wage of R15,16 per hour. Furthermore, workers who have concluded learnership agreements as contemplated in section 17 of the Skills Development Act, 1998 (Act No. 97 of 1998) are entitled to allowances provided for in Schedule 2 of Government Gazette No. 50073 dated 2 February 2024. The Government Gazette also makes provision for the amended wages pertaining to sectoral determinations of the Contract Cleaning and Wholesale and Retail sector.
The Minister further determined that the latest earnings threshold of R254 371,67 would be applicable from 1 April 2024 and recapitulated that employees earning above the threshold could not rely on certain provisions governed by the Basic Conditions of Employment Act, 1997 (Act No. 75 of 1997) relating to working hours, overtime, time period for meals, daily and weekly rest periods, remuneration for work performed on a Sunday, night work, and public holidays.
Please click on the highlighted link to access a SERR Synergy article discussing the 2024 National Minimum Wage.
LABOUR RELATIONS
LABOUR RELATIONS ACT, 1995 (ACT NO. 66 OF 1995
The Registrar of Labour Relations announced the registration and/or cancellation of the following Trade Union and Employer Organisation:?
The following Bargaining Councils’ Collective Agreements have been extended to Non-Parties:
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The extension to Non-Parties of the various Bargaining Councils’ Main Collective Agreements means that other employers and employees working in the same or similar industry are also bound by the provisions of the applicable Collective Agreement until the date specified in the Government Gazette.
OCCUPATIONAL HEALTH AND SAFETY COMPLIANCE
COMPENSATION FOR OCCUPATIONAL INJURIES AND DISEASES ACT, 1993 (ACT NO. 130 OF 1993)
Returns of Earnings:
The period for annual submission of the Returns of Earnings (ROEs) for the 2023 assessment will be from 1 April 2024 to 30 June 2024.
The Compensation Fund indicated in Government Gazette No. 50109 dated 12 February 2024 that ROEs submitted after the prescribed assessment period will be subject to a 10% penalty and interest will be charged on accounts made after 30 days of the invoice date and on overdue accounts.
Please click on the highlighted link to access a SERR Synergy article discussing the annual submission procedure for COIDA compliance.
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Maximum amount of Earnings and Minimum Assessment on which the assessment of an Employer shall be calculated:
The Minister of Employment and Labour, in Government Gazette No. 50386 dated 27 March 2024, prescribed the amount of R597 328 per employee per annum as the maximum amount of earnings on which an assessment of an employer shall be calculated with effect from 1 March 2024; a Minimum Assessment of R1 530 for employers with effect from 1 March 2024; and lastly, a Minimum Assessment of R528 for domestic employers with effect from 1 March 2024.
?OCCUPATIONAL HEALTH AND SAFETY ACT, 1993 (ACT NO. 85 OF1993):
The Driven Machinery Regulations 2015: Draft Code of Practice for Conveyor Systems have been published for public comment. Interested parties have 60 days to submit their comments on the Draft Regulations to the designated governmental department indicated in Government Gazette No. 50460 dated 12 April 2024.?
The Minister of Employment and Labour prescribed the annual increase in medical tariffs for the following medical service providers with effect from 1 April 2024:
RECENTLY PUBLISHED BLOGS
For ease of reference, please find below a summary with links to our recently published blogs:?
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We are committed to providing our clients with the best service at all times and to investigate all possible avenues to improve our service offering to clients to accommodate their individual needs. Please e-mail any suggestions to [email protected].
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Compiled by:
SERR Synergy Research Division
L. Boshoff – [email protected]
Kindly take note that a version of this Business Edge was also published on our website during May - click here to read online.