T1M2 Macro environment: The impact of recent legislation (Part 2)

Question 1

What is the nature of the Basic Conditions of Employment Act (BCEA)?

Answer 1

It outlines the basic conditions of employment.

Question 2

Name some aims of the BCEA?

Answer 2

• Ensure that working conditions comply with the minimum requirements.
• Promote economic development and social justice.
• Regulate the right to fair labour practices.
• Promote flexibility.

Question 3

What are the provisions of the BCEA, regarding work time?

Answer 3

• Normal: 8 hours per day in a six-day work week or 9 hours per day in a five-day work week.
• Lunch break: Employees should take a 1-hour lunch break after 5 hours of work. (can be reduced to 30 min)
• Sundays and public holidays: Employees should be paid twice the normal wage.
• Overtime: Overtime is paid only through written agreement and at 1,5 times the normal wage.

Question 4

What are the provisions of the BCEA, regarding leave?

Answer 4

• Annual leave: Employees are entitled to 21 days consecutive days of annual leave.
• Sick leave: Six weeks of paid sick leave in a period of 36 months and If an employee is absent for more than two days, a medical certificate is required.
  Maternity leave: An employee is titled to four months consecutive leave. This can be paid or unpaid leave.
  Family responsibility leave: An employee is entitled to three to five days of paid leave on request, and Male employees have 10 consecutive days of paternity leave.

Question 5

What are the provisions of the BCEA, regarding appointment and remuneration?

Answer 5

Contract: An employment contract must be drawn up, indicating the date of appointment, working hours, leave days, overtime, deductions, etc.

Question 6

What are the provisions of the BCEA, regarding termination of employment?

Answer 6

Notice: One week’s notice if employed for less than six months, or four weeks’ notice if employed for more than one year, and notice must be in writing.
Severance pay: An employee must be paid one week’s wage for every year worked if their contract is terminated unwillingly.
Termination of employment: If an employee is dismissed, they are entitled to one week’s wage for every year worked.

Question 7

What are the provisions of the BCEA, regarding child labour?

Answer 7

Children under the age of 15 cannot be employed.

Question 8

What are ways businesses can be non-compliant with the BCEA?

Answer 8

• Preventing employees from having access to employment contracts.
• Forbidding employees from discussing wages or salaries with co-workers.
• Refusing to grant leave.

Question 9

What are penalties or consequences for businesses that are non-compliant with the BCEA?

Answer 9

• Labour inspectors can serve a compliance order by writing to the Department of labour.
• Businesses can be taken to the labour court for ruling.

Question 10

What is a compliance order?

Answer 10

A compliance order sets out how the employer has broken the law and includes the amount the employer must pay as a fine or penalty.

Question 11

What are the advantages/positives of the BCEA, on the business?

Answer 11

• Promotes equal opportunities and fair treatment of all employees.
• Outlines the minimum requirements of an employment contract.
• Creates a framework of acceptable practices.

Question 12

What are the disadvantages/negatives of the BCEA, on the business?

Answer 12

• Time-consuming to draw up a well-structured employment contract for each employee.
• It can be costly for the business to comply with all processes and procedures.
• Businesses face large penalties for non-compliance.
• Businesses cannot offer cheap labour.

Question 13

What are the advantages/positives of the BCEA, on the employees?

Answer 13

• Employees cannot be forced to work overtime.
• Employees have the right to join a trade union.
• Complaints can be submitted to labour inspectors, who have the power to come on-site and investigate.

Question 14

What is the purpose of the Compensation for Occupational Injuries and Disease Act?

Answer 14

COIDA regulates what compensation an employee could receive if they are injured, contract a disease or are killed at the workplace.

Question 15

How does the COIDA act work?

Answer 15

Employers pay into a Compensation Fund once a month for employee insurance. The amount paid depends on the number of employees and the risk of injury on duty.

Question 16

What rights do employees have in terms of COIDA?

Answer 16

• An employee can claim a higher amount of compensation if the injury, disease or death was caused by negligence of the employer.
• If an employee mainly works in South Africa, but is injured while working overseas, he/she can still claim for compensation

Question 17

What are employers obliged to do according to COIDA?

Answer 17

• Register with the Compensation Commission.
• Ensure that the equipment and work environment is safe and that all machinery used is in a good working condition.
• Keep and submit a register of records.
• Notify the Compensation Commission within a specific time frame about any claims and submit all the required documents.

Question 18

What responsibility do employees have regarding COIDA?

Answer 18

• Ensure that they are not injured as a result of misbehaviour.
• Submit all necessary documentation and reports when making a claim.
  -Notify the employer as soon as an injury occurs.

Question 19

What are the procedures to follow if an employee gets injured at work according to COIDA?

Answer 19

Report the injury before the end of the shift, seek medical attention, and the employer submits a claim to the Compensation Commissioner within seven days.

Question 20

What is the employer’s responsibility after an employee is injured?

Answer 20

Send the employee to a medical practitioner for a full report, collect relevant documentation, and submit an official claim to the Compensation Commissioner within seven days

Question 21

What does the Compensation Commissioner do after receiving the employer’s claim?

Answer 21

Issues a claim number and determines the validity of the claim and the amount to be paid out.

Question 22

When does the right to claim workers’ compensation expire?

Answer 22

Within 12 months of the incident occurring

Question 23

What are the positive impacts of COIDA on businesses?

Answer 23

Promotes workplace safety
Eliminates costs and time associated with civil lawsuits
Provides guidelines for handling claims
Establishes a framework for safety procedures

Question 24

What are the negative impacts of COIDA on businesses?

Answer 24

Time-consuming claims processing
Increased administrative costs due to paperwork
Potential cashflow problems from employee registration and fund contributions
Heavy penalties for negligence

Question 25

What are the positive impacts of COIDA on employees?

Answer 25

Coverage for all employees meeting necessary requirements
Financial support for dependents in case of work-related death
Financial compensation for injuries or diseases linked to everyday work operations

Question 26

What are the negative impacts of COIDA on employees?

Answer 26

Lack of coverage for employees employed in another country
Exclusion of domestic and military workers from coverage

Question 27

What actions are regarded as non-compliance with COIDA?

Answer 27

Employers not contributing to the Compensation Fund
Employers delaying claims processing
Employers engaging in bribery or preventing employees from reporting incidents

Question 28

What are the penalties for non-compliance with COIDA?

Answer 28

Compliance order from the Labour Court
Fines for refusing to lodge claims
Potential jail sentences for owners and managers
Large payments for failure to implement safety precautions
Liability for recovery costs mandated by the Compensation Fund
Risk of employees taking legal action for not registering with the Commissioner

Question 29

How can businesses comply with COIDA?

Answer 29

Submit returns of earnings by March 1 annually
Pay levies regularly to the Compensation Fund
Provide a healthy and safe working environment
Report all incidents causing death, injury, or illness of employees

Question 30

What is the role of the National Credit Act (NCA) in the context of loans and credit?

Answer 30

The NCA provides guidance on loans and credit to prevent over-indebtedness. It outlines the rights and responsibilities in credit sales agreements.

Question 31

What is the purpose of the National Credit Act (NCA)?

Answer 31

Promote the development of the credit market in South Africa.
Prevent unfair discrimination and ensure credit availability to all consumers.
Ensure equal treatment of credit providers and consumers.
Promote equity in the credit market by balancing rights and responsibilities.
Discourage reckless provision of credit to applicants unable to pay.
Establish the National Credit Regulator (NCR) and the National Credit Tribunal (NCT).

Question 32

What rights does the National Credit Act (NCA) grant to consumers?

Answer 32

Apply for credit without discrimination
Maintain confidentiality of personal information
Access and challenge credit bureau information
Receive information in clear, simple language
Have necessary documentation provided and signed before transactions
Receive reasons for credit application rejection

Question 33

What rights does the NCA grant to credit providers?

Answer 33

Take legal action if no payment is made 20 days after a written notice
Be notified of changes in consumer’s address or contact details
Apply for a sentence against the consumer in case of non-payment

Question 34

What actions are regarded as non-compliance with the NCA?

Answer 34

Refusing credit based on discrimination
Charging different interest rates based on discriminatory grounds
Granting credit recklessly without explanation
Failing to conduct affordability assessments
Blacklisting customers without exhausting debt recovery efforts

Question 35

What are the penalties and consequences for non-compliance with the NCA?

Answer 35

Fines or penalties imposed by the National Credit Regulator (NCR)
Prohibition of fees, interest, or charges under the credit agreement
Court declaration of reckless credit, possibly ordering non-repayment
Prohibition of demanding payment, suing, or attaching assets for debt repayment
Business bears costs of removing negative information for reckless credit
Possible revocation of business license for reckless credit and NCA violations

Question 36

How can businesses comply with the NCA?

Answer 36

Disclose all loan costs without hidden fees
Register all credit providers with the National Credit Regulator
Conduct affordability assessments for consumer obligations
Submit an annual compliance report to the National Credit Regulator

Question 37

What are the positive impacts of the NCA on businesses?

Answer 37

Elimination of reckless granting of loans
Increased customer base through protected credit sales
Potential boost in cash sales to qualifying customers
Easier recovery from non-paying customers
Protection against bad debts

Question 38

What are the negative impacts of the NCA on businesses?

Answer 38

Added administrative burden due to increased paperwork
Possible decrease in sales as credit is only extended to qualifying customers
Risk of consumers providing false information on applications
Complex and time-consuming debt recovery process

Question 39

What are the positive impacts of the NCA on consumers?

Answer 39

Protection against unjust credit practices
Assurance that credit is granted based on financial qualification
Access to bad debt counseling for debt restructuring
Contracts and applications in simple, understandable language

Question 40

What are the negative impacts of the NCA on consumers?

Answer 40

Blacklisted applicants may be denied access to credit
Potential lowering of the standard of living without credit
Risk of exploitation by microlenders for consumers with significant debt

Question 41

What is the aim of the Consumer Protection Act (CPA)?

Answer 41

To change how businesses interact with customers, protecting consumers from exploitation by informing them of their rights and responsibilities.

Question 42

To which transactions does the CPA apply?

Answer 42

The CPA applies to all transactions involving buying and selling, as well as the promotion and supply of goods and services.

Question 43

What is the purpose of the CPA?

Answer 43

Create a legal framework for a fair, accessible, sustainable, efficient, and responsible consumer market.
Promote and protect the economic interests of consumers.
Provide national standards to protect consumers.
Promote fair business practices.
Protect consumers against deceptive, misleading, and fraudulent conduct.

Question 44

What is the right to choose under the CPA?

Answer 44

Consumers can choose suppliers and goods.
Return unsafe or defective goods for a full refund.
Request written quotations and estimates.

Question 45

What is the right to privacy and confidentiality under the CPA?

Answer 45

Restrict unwanted marketing.
Lodge complaints if personal information is shared unwillingly.

Question 46

What is the right to return goods under the CPA?

Answer 46

Defective or unsafe goods must be replaced.
Faulty items can be returned for a full refund.

Question 47

What is the right to fair, just, and reasonable terms and conditions under the CPA?

Answer 47

Businesses cannot market or sell goods at unfair prices.
State in writing any clauses limiting consumer rights.

Question 48

What is the right to equality in the consumer market under the CPA?

Answer 48

Businesses cannot limit access to goods and services.
Cannot discriminate in marketing.
Cannot charge different prices for the same goods.

Question 49

What is the right to fair and honest dealings under the CPA?

Answer 49

Suppliers cannot use physical force to harass customers.
Cannot overbook or oversell products.
Cannot promote pyramid or chain letter schemes.

Question 50

What is the right to disclosure and information under the CPA?

Answer 50

Contracts in plain language.
Display fully-inclusive prices.
Product labels not misleading

Question 51

What is the right to fair and responsible marketing and promotion under the CPA?

Answer 51

Businesses cannot mislead consumers on price.
Display accurate country of origin and expiry date information.

Question 52

What is the right to accountability from suppliers under the CPA?

Answer 52

Consumers protected in lay-by agreements.
Businesses must honour credit vouchers or prepaid sales.

Question 53

What is the right to fair value, good quality, and safety under the CPA?

Answer 53

Demand good quality services and goods.
Receive a warranty.
Return faulty goods within six months of purchase.