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New and ammended labour legislation ... perhaps you should read this?
There is no doubt that organisations will struggle to come to grips with the new and amended legislation regarding Temp & Contract Employees AND Equal Pay for Equal Work.
CONTINUALLY RENEWING EMPLOYEES CONTRACTS ?
The amendment speaks of a ‘deeming provision’ which simply put means that fixed-term contracts are permissible only when employers can properly justify them.
If you have FIXED-TERM CONTRACT EMPLOYEES they’ll NOW BE PERMANENT EMPLOYEES AFTER 3 MONTHS unless you have one essential thing in place;
CONTRACT EMPLOYEES FROM LABOUR BROKERS will also be PERMANENT EMPLOYEES AFTER 3 MONTHS if you don’t meet certain criteria.
Organisations that rely on outsourcing arrangements or contractors as part of their business model will need to pay particular focus to labour law amendments that in most cases prohibit employers from entering into a fixed-term contract with employees for longer than 3 months.
In addition The new law specifies that employees on fixed-term contracts or employees from labour brokers must be remunerated with equal pay and benefits as do permanent employees.
EQUAL PAY FOR EQUAL WORK – IT’S THE LAW !!!
There is no doubt that organisations will struggle to come to grips with the nuances of new and amended legislation around EQUAL WORK for EQUAL PAY and Fixed-Term Contracts.
The concept of pay equality (equal pay for equal work) in South African legislation is not a new one, in fact it has been part of the Employment Equity Act (EEA) since its inception
PAY EQUALITY means that people who are exactly alike in every material respect, should not earn differently based on any of the discriminatory grounds referred to in terms of section 6 of the EEA (note : differences in salary which are based on employees having different levels of responsibility, expertise, experience and or skills does not amount to discrimination)
MIRRORING PACKAGES FOR ALIKE ROLES
It is thus imperative that organisations audit their remuneration and reward practices using a “fine comb”
Where terms and conditions of employees differ, even where employees do the same or similar work or work of equal value, the organisation has to determine whether such differentiation is a listed or arbitrary ground and whether there is an acceptable ground of justification for such differentiation
It is understood that pay equality cannot be achieved overnight as the cost for some organisations may even have the potential to sink the company
Employers thus have to take steps to ‘progressively reduce’ any disproportionate income differentials; practical steps that can be implemented and proven.
STAY ABREAST WITH THE NEW & AMENDED LEGISLATION
Labour Economist : Andrew Levy said “These are only some of the elements that can be expected from a changing labour environment. There will in future for example also be fines for employment equity shortcomings and there will be serious limitations on employers’ abilities to change working practices.”
GETTING LEGAL WISE
To gain a better understanding of the amendments and how to manage them, contact Infusion Consulting : l 011 465 3944
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