Fringe benefits Flashcards
Examples of employee benefits
-Pension fund
-Car allowance
-Medical aid fund
-Funeral benefits
Impact of fringe benefits
-Improves productivity resulting in higher profitability
-Businesses save money as benefits are tax-deductibles
-Fringe benefits can be used as leverage for salary negotiations
-Fringe benefits are additional costs and may result in cash flow problems
-Businesses that cannot offer fringe benefits fail to attract skilled workers
UIF as a benefit required by law
-UIF assists the dependants of a contributing worker who has died
-By law, employees are required to contribute 1% of their basic salary towards UIF
-Employers are also required to contribute 1% an employee’s basic salary towards UIF
-Employers pay the 2% directly to the UIF on behalf of the employees
Implications of LRA on HR
-Employees cannot be easily dismissed as CCMA processes need to be correctly followed
-Promotes orderly negotiations and employee participation in decision-making in the workplace
-Protects the rights of employees and employers as outlined in the constitution
-Advances economic development
Implications of BCEA on HR
-The HRM must ensure that all employee contracts are aligned to the provisions of the BCEA
-Ensures that employees have a 60-minute break after 5 hours of work
-Ensures that employees receive double their rate if they work on public holidays or Sundays
-Ensures that employees are entitled to take a paid sick leave of six weels in a 3 year cycle
Implications of the EEA
-The HRM must promote equality in the workplace
-Ensure that affirmative action promotes diversity in the workplace
-Assign a manager to ensure that the employment equity plan will be implemented
-Compile employment equity plans that indicate how they will implement affirmative action
Implications of the SDA -
-Use the NQF to assess the skill levels of employees
-Implement the aims of the framework for the NSDS
-The business should contribute 1% of its salary to the SDL
-Ensure training in the workplace is structured
