click to edit master title style z b zinn & botha consulting what defines you? amendments &...

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www.zbconsulting.za.com

ZBZinn & Botha Consulting

what defines you?

Amendments & TimingPre-requisites in the A-typical

SpaceInterpreting FTC & TES

provisionsBig-Ticket Items (including Equal

pay)BBBEE vs Labour Law

IS THIS THE END OF TES AS WE KNOW IT?

201420132011 2012

LARGEST regulatory changes in

the past 40 years

2015

Time to Face up to the ….

BZ Broad-mindedness

Business Complexity

Brussels (24 February, 2014). In 2013, the private employment services (PrES) industry showed its strongest results since the beginning of the

recession in 2008. The USA, Japan and Europe, together worth 82% of the worldwide PrES industry market, all reported a return to growth: In

November 2013 the US Staffing Employment Index reached 102, its highest position in six years and a notable growth of 6.9% y-o-y.




what defines you?

Labour Relations Act amendments

BZ Three ways of securing human capital

Business strategy

SBO’s human capital needs

Temporary employment services

Direct employmento FTCo Part-timeo Permanent

Independent contracting/sub

contracting

BZ A ‘fixed term contract’

means a contract of employment that terminates on– the occurrence of a

specified event

– the completion of a specified task or project; or

– a fixed date, other than an employee’s normal or agreed retirement age

– Employment in terms of a fixed term contract in contravention of the above is deemed to be of indefinite duration

A ‘Dismissal’ meanso (b) an employee

engaged under a fixed-term contract of employment reasonably expected the employer– to retain the

employee on an indefinite contract of employment but otherwise on the same or similar terms as the fixed term contract, but the employer offered to retain the employee on less favourable terms, or did not offer to retain the employee

Fixed-term contracts Many shades of grey

BZWhat does it really mean when it says the CLIENT is the deemed employer?

(4A) If the client of a temporary employment service is jointly and severally liable in terms of section 198 (4) or is deemed to be the employer of an employee in terms of section 198A (3)(b)o the employee may institute proceedings against either the

temporary employment service or the client or both the temporary employment service and the client

o a labour inspector acting in terms of the Basic Conditions of Employment Act may secure and enforce compliance against the temporary employment service or the client, as if it were the employer, or both; and

o any order or award made against a temporary employment service or client in terms of this subsection may be enforced against either

That deeming provision

BZApplies irrespective of direct FTC or via a TES

Joint and several liability for breaches of BC/SD/BCEA

D U R A T I O N O F C O N T R A C T

RE

MU

NE

RA

TI

ON

3 months

R205K per annum

Joint and several liability for breaches of BC/SD/BCEA

SERVICE LEVEL AGREEMENTo indemnificationso insuranceso SOP’s

Joint and several liability for LRA (if TES is involved)

Equal treatment Organisational rights

Fixed-term contract structure




what defines you?

Statutory Provision Financial Impact Commercial/ SLA Impact Transformational/ BBBEE Impact

Operational Impact

EE Act (ss20, 21,42) EE Plan EE Report

2% of annual turnover or R1.5m whichever is greater

SOP & MI requirements Planned integration of assignees based on race, gender, disability

Fully integrated committee, analysis, plan & report, monitoring & evaluation, expertise

LRA/EE Act (s6(4)) Equal pay for work of

equal value

% of payroll underpaid without justfication (TCT)

Fully aligned, agreed & implemented strategy

NA MI, monitoring & evaluation, expertise

LRA (s186) Unfair Dismissal

(indefinite & reasonable expectation)

Re-instatement with client or up to 12 months compensation on Joint & Several basis

Clearly defined SOP re who chairs & complains as well as dispute procedures and MI/ case management

NA MI, monitoring, evaluation, expertise

LRA (s186) Unfair Labour

Practice (promotion, training, benefits)

Order as to damages & remedies on Joint & Several Basis

Clearly defined SOP on how to access vacancies & development opportunities


LRA (s198) FTC/TES/Part-timers 3 month threshold &

-R205K)

Equal pay % of payroll underpaid without justification

Unfair dismissals/ULP’s

Fully aligned, agreed & implemented strategy


BBBEE Skills Development &

EE Preferential

Procurement

Saving of around 10% of NPAT on using TES

Gain of points under PP

Contract around BBBEE credentials & status

HUGE! MI, monitoring, evaluation, expertise




what defines you?

Equal treatment

BZ JUSTIFIABLE REASON for different treatment... includes the fact

that the different treatment is as a result of the application of a system that takes into accounto the employee’s seniority, experience or length of serviceo merit criteriao the quality or quantity of work performedo any other relevant criteria of a similar nature

– (that is not prohibited in terms of section 6 of the Employment Equity Act)

Under the Labour Relations Act

BZ Determining Equal Pay risk exposure - first things first!

F

BA

A – Earning more than R205K/pa

B – Contracted for less than 3 months

C – Normal absenteeism replacement

D – Trainee/intern/learnership/ apprenticeship

E – Short-term project

F – Justifiable reason

(LOS/experience/performance/ merit/other)

Fields & data (data sheet)

o Client perm

o Client part-time

o Client FTC

o TES

Clean up “Gene Pool”Options

CRUCIAL…Design & Develop a revised DISPENSATION STAFFING SOLUTION going forwards




what defines you?

BBBEE AMENDED CODES

Element Previous Weighting New Weighting

Ownership 20 points 25 points

Management Control(Employment Equity)

10 points Consolidated with Employment Equity

15 points15 points

Skills Development 15 points 20 points

Enterprise & Supplier Development(Preferential ProcurementEnterprise Development)

20 points 40 points

15 points

Socio-Economic Development 5 points 5 points

BBBEE DYNAMICS “UNDER PRESSURE”

Threats:

- Recalibration of BBBEE Verification Score Level Requirements- Priority Element Minimums- EAP targets for Management Control/EE and Skills Development- Definition of “Empowering Supplier”

CONTRIBUTION LEVEL

PREVIOUS CALIBRATION NEW CALIBRATION BEE RECOGNITION LEVEL

Level One Contributor

≥ 100 points on the Generic Scorecard

≥ 100 points on the Generic Scorecard

135%

Level Two Contributor

≥ 85 but < 100 points on the Generic Scorecard

≥ 95 but < 100 points on the Generic Scorecard

125%

Level Three Contributor

≥ 75 but < 85 on the Generic Scorecard


110%

Level Four Contributor



100%

Level Five Contributor



80%

Level Six Contributor



60%

Level Seven Contributor



50%

Level Eight Contributor


≥ 40 but < 55 on the Generic Scorecard (all things equal)

10%

Non Compliant Contributor

< 30 on the Generic Scorecard < 40 on the Generic Scorecard (probable end point in absence of clear strategy)

0%

HIER KOM GROOT MOEILIKHEID!

Its not what happens to you, but how you respond!!

Table 1: Profile of the national EAP by race and gender

Male Female Total

AM African male 40.7% AF African female 34.2% 74.9%CM Coloured male 5.8% CF Coloured female 5.0% 10.8%IM Indian male 1.9% IF Indian female 1.1% 3%WM White male 6.4% WF White female 4.9% 11.3%TOTAL 54.8% TOTAL 45.2%

Source: Statistics South Africa, (QLFS 3 2012) (all percentages are rounded to one decimal point)

National Sub-race & Gender now applies to Management Control/EE and Skills Development


what defines you?

Your Client(s)Finding Relevance

Your Business

Workforce Plan

Strategic Imperatives

EE Act Employment Tax Incentive BBBEE LR Act SETA’s/ SARS

Ownership 25

Management Control 15

Skills Development 20/25

Preferential Procurement 25

Supplier Development 10

Enterprise Development 5

Socio-economic Development 5

6% payroll4% NPAT

Equal Pay/ TreatmentDismissal RightsFTC regulationsTES provisions

Mandatory GrantsDiscretionary GrantsLearnership tax Rebates R100K & R60K

Youth Employment Tax Rebate R1000pm (24 months)

Fines for not making reasonable progress starting at 2% of annual turnover

Preferential Procurement 25

General PP from all = 5QSE PP = 3EME PP = 451 Black Owned = 930% Black Female = 4

Strategic Partner Characteristics (2014 & beyond)

• Back up SLA Indemifications & InsurancesStrong Balance Sheet

• Management InformationSystems • Innovation & differentiationThought leadership

Capacity to Deliver

Trust & “in it for the long haul”

Business Sense

• Global Best-practice, Locally

• Values, Culture & Track Record

• Immerse into Client Business Drivers

JOHN BOTHA

082 457 0000

john@zbconsulting

.za.com

click to edit master title style z b zinn & botha consulting what defines you? amendments &...

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client o

fixed term contract

retirement age employment

us staffing employment

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z b zinn botha consulting

direct ftc

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