The document discusses recent amendments to South African labour laws and their implications. It notes the largest regulatory changes in 40 years and outlines steps companies should take to address the changes, including reviewing policies, auditing compliance, and updating contracts. The amendments impact issues like fixed-term contracts, equal pay, skills development requirements, and the relationship between labour laws and BBBEE codes. Companies are advised to seek consulting help to navigate the changes and design new staffing solutions.

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www.zbconsulting.za.com
ZB Zinn & Botha Consulting
what defines you?
We are in the business of sustainable
BBBEE strategy optimisation by
bespoke innovation in talent
management, workforce optimisation
and labour law

2. ZB
Scope of amendments
 Labour Relations Act
 Employment Equity Act
 Basic Conditions of Employment Act
 Employment Services Act
 BBBEE Codes

3. ZB Time to face up to the…
2014 2013 2011 2012
LARGEST
regulatory changes in
the past 40 years
2015

4. ZB
Immediate administrative
matters to address
 Stakeholder communication & capacitation (all levels of management,
employees, TES & suppliers)
 Draft & maintain a Risk Register
 Update Fixed-term Contracts
 Update TES Service Level Agreements
 Arrange an audit of TES
 Start an investigation into equal treatment risk exposure & strategic options
to minimize risk & employee cost increases
 Review IR policies such as retrenchments, employment equity & the like
 Establish impact on collective agreements
 Commission an audit into the entire employment equity compliance domain
on the basis of the requirements of a DG review
 Draft new a-typical employment & equal treatment/pay for work of equal
value policies
Contact us now to
arrange for any of these
interventions!
john@zbconsulting.za.com

5. ZB
LRA epicentre
Its all inter-related; a “system” which calls for systems thinking
rather than narrow-mindedness
LRA EMPLOYMENT
STRUCTURE DECISION
WILL IMPACT

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www.zbconsulting.za.com
ZB Zinn & Botha Consulting
what defines you?
BBBEE codes & relationship with LRA
& EE Act

7. ZB Three ways of securing human
capital
Business strategy
SBO’s human capital needs
Temporary employment
services
 Direct employment
o FTC
o Part-time
o Permanent
Independent
contracting/sub
contracting

8. ZB
Generic scorecard
Element Previous Weighting New Weighting
Ownership 20 Points 25 Points
Management Control
(Employment Equity)
10 Points Consolidated with
Employment Equity
15 Points 15 Points
Skills Development 15 Points 20 Points
Enterprise & Supplier
Development
(Preferred Procurement
Enterprise Development)
20 Points
40 Points
15 Points
Socio Economic
Development
5 Points 5 Points

9. ZB
Recalibration of BBBEE levels -
current score = ??
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
≥ 90 but < 95 on the Generic
Scorecard
110%
Level four
contributor
≥ 65 but < 75 on the Generic
Scorecard
≥ 80 but < 90 on the Generic
Scorecard
100%
Level five
contributor
≥ 55 but < 65 on the Generic
Scorecard
≥ 75 but < 80 on the Generic
Scorecard
80%
Level six
contributor
≥ 45 but < 55 on the Generic
Scorecard
≥ 70 but < 75 on the Generic
Scorecard
60%
Level seven
contributor
≥ 40 but < 45 on the Generic
Scorecard
≥ 55 but < 70 on the Generic
Scorecard
50%
Level eight
contributor
≥ 30 but < 40 on the Generic
Scorecard
≥ 40 but < 55 on the Generic
Scorecard
10%
Non-compliant
Contributor
< 30 on the Generic Scorecard < 40 on the Generic Scorecard 0%

10. ZB
National sub-race & gender
Now applies to management control/EE and skills development
 Male
o AM (African male)
– 40.7%
o CM (coloured male)
– 5.8%
o IM (Indian male)
– 1.9%
o WM(white male)
– 6.4%
 Total 54.8%
 Female
o AF (African female)
– 34.2%
o CF (coloured female)
– 5.0%
o IF (Indian female)
– 1.1%
o WF (white female)
– 4.9%
 Total 45.2%
Source: Statistics South Africa, (QLFS 3 2012) (all percentages are rounded to one decimal point)

11. ZB Skills development
Element Category Indicator
Weighting
points
Compliance
Target
Score
Total Points = 20
Skills
Development
Spend on
Learning
Programmes in
Matrix
Skills development spend on learning programmes
specified in the matrix for black employees as a
percentage of leviable amount
8 6%
Skills development spend on learning programmes
specified in the matrix for black employees with
disabilities as a percentage of leviable amount
4 0.3%
Learnerships,
Apprenticeships
& Internships
Number of black employees participating in
Learnerships, Apprenticeships & Internships as a % of
total employees
4 2.5%
Number of black unemployed people participating in
training specified in the learning programme matrix
as a % of number of employees
4 2.5%
Bonus Points
Number of Black people absorbed by the Measured &
Industry Entity at the end of the Learnerships
programme
5 100% or pro-rata

12. ZB Enterprise & supplier
development
Element Category Indicator
Weighting
points
Compliance
Target
ENTERPRISE &
SUPPLIER
DEVELOPMENT
Total Points = 40
Preferential
Procurement
BEE Procurement Spend from all Empowering Suppliers based on the BEE Procurement Recognition
Levels as a percentage of Total Measured Procurement Spend
5 80 %
BEE Procurement Spend from all Empowering Suppliers that are Qualifying Small Enterprises based
on the applicable BEE Procurement Recognition Levels as a percentage of Total Measured
Procurement Spend
3 15 %
BEE Procurement Spend from all Exempted Micro Enterprises based on the applicable BEE
Procurement Recognition Levels as a percentage of Total Measured Procurement Spend 4 15 %
BEE Procurement Spend from all Empowering Suppliers that are at least 51% black-owned based on
the applicable BEE Procurement Recognition Levels as a percentage of Total Measured Procurement
Spend
9 40%
BEE Procurement Spend from all Empowering Suppliers that are at least 30% black-women owned
based on the applicable BEE Procurement Recognition Levels as a percentage of Total Measured
Procurement Spend 4 12%
Bonus Points BEE Procurement Spend from Designated Group Suppliers that are at least 51% Black-owned 2 2%
Supplier
Development
Annual Value of all supplier development contributions made by the measured entity as a % of target 10 2% of NPAT
Enterprise
Development
Annual Value of enterprise development contributions and sector-specific programmes made by the
measured entity as a % of target 5 1% of NPAT
Bonus Points
Graduation of 1 or more ED beneficiaries to Supplier Development level
Creating one or more jobs as a result of Supplier Development & ED initiatives by the measured entity
1
1

13. Click to edit Master title
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www.zbconsulting.za.com
ZB Zinn & Botha Consulting
what defines you?
Labour Relations Act amendments

14. ZB
Right-size; down-size; up-size…
 Section 189A of the Principal Act is hereby amended by
o the insertion in subsection (2) of the following paragraph
– (d) a consulting party may not unreasonably refuse to extend the period for consultation
if such an extension is required to ensure meaningful consultation
Scope & Impact
 Retrench, change terms of employment …
 90 days is the minimum!
 Dismissal risk heightened

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www.zbconsulting.za.com
ZB Zinn & Botha Consulting
what defines you?
Fixed-term contracts, indefinite
contracts & legitimacy of contracts,
equal pay matters etc.

16. ZB
Fixed-term contracts – many shades
of grey
 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’means
o (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

17. ZB
Fixed-term contracts – vulnerable
persons
Applies 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
R E M U N E R A T I O N
3
months
R205 per annum
 Joint and several liability for
breaches of BC/SD/BCEA
 Joint and several liability for
LRA (if TES is involved)
 Equal treatment
 Organisational rights
 SERVICE LEVEL AGREEMENT
o indemnifications
o insurances
o SOP’s

18. ZB
That deeming provision
What 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

19. SOP: ASSIGNEE REMOVAL GUIDELINES
Client instructs the TES to remove an assignee
Determine if FTC clearly defines an event, duration or project with clear indicators
managing expectations: consider number of renewals/ rolling, duration & wording
of contract as well as reason for removal
FTC is clear wrt termination &
expectation management
Probability is that assignee harbours an
expectation of renewal of contract or
indefinite duration
Assigned for
<24m
Give
contractual
notice if end
date is not
clear
Assigned for
>24m
Give contractual
notice &
termination pay
(1w remuneration/
complete year
service)
Misconduct Incapacity
Operational
Requirements
Be careful of potential
application of selection
criteria across client & TES
staff & severance pay

20. ZB
Risk management – labour law
scenarios
Statute Client
Joint & Several
Liability
TES Liability
Severally
Labour Relations Act Yes – pending Yes
Employment Equity Act
Unfair discrimination
AA (after 3 months)
Yes
Skills Development Act Yes
Skills Development Levies Act Yes
Bargaining Council/ Sectoral
Determination/ BCEA
Yes
UIF Yes
COID Yes
OHSA Yes

21. Click to edit Master title
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www.zbconsulting.za.com
ZB Zinn & Botha Consulting
what defines you?
Equal treatment

22. ZB General Approach…
1. Is the dispute a genuine equal pay/ equal treatment dispute?
2. Are the positions being compared of equal value?
the responsibility for people, finances and material & the skills,
qualifications, including prior learning and experience required &
physical, mental and emotional effort required to perform the work
& the conditions under which work is performed, including physical
environment, psychological conditions, time when and geographic
location where the work is performed.
3. Are there justifiable reasons for differentiation?
Seniority, length of service, qualifications, ability, competence,
performance or quality of work, temporarily employed to gain
experience or training, shortage of skills or market values thereof,
any other factor
REMEDY: LRA – address immediately & EEA – take remedial steps

23. ZB
Under the Labour Relations
Act
 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
account
o the employee’s seniority, experience or length of service
o merit criteria
o the quality or quantity of work performed
o any other relevant criteria of a similar nature
– (that is not prohibited in terms of section 6 of the Employment Equity Act)

24. ZB It is partly about correlations
Equal pay for work of equal value

25. ZB Determining Equal Pay risk
exposure - first things first!
B A A – Earning more than R193K/pa
F
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
100 Assignees
20 Assignees -
Exposure
Clean up “Gene Pool”
Options: perm,
attrition, increase …
CRUCIAL…
Design & Develop a NEW
DISPENSATION
STAFFING SOLUTION
going forwards

27. WHERE DO YOU FEATURE?
Opportunist Ambassador
Quantitative Progress
Cool Martyr
Business Uncertainty & Cyclicality
Permanent
Employment
High Flexibility Needs
Hybrid
TES/ Outsourced
Staffing
Low Flexibility Needs

28. RESPONSE
Business strategy must drive decisions
Options Blend
Independent Contractors/
Sub-contractors/
Outsourcing
Temporary
Employment Service/
Labour Broker
Direct Employment
 Managed
Service Provider
(MSP)
 Full Function
Outsource
 Pay-for-
Performance
 Other
arrangements
 SLA indemnifications
 integrated SOP’s
 Systems & MI
 Capacity & delivery
 Thought leadership
 Remove
comparator
 Compliance with
law
 Recruitment
process
outsourcing
(RPO)
 HR outsourcing
 LR outsourcing
 Payroll
bureau
 etc.

29. STRATEGIC STAFFING PARTNER CHARACTERISTICS
(2014 & BEYOND)
• Back up SLA Indemnifications &
Insurances
Strong Balance
Sheet
Systems •Management Information
Thought leadership • Innovation & differentiation
Capacity to Deliver •Global Best-practice, locally
• Values, culture and track
record
Trust & “in it for the
long haul”
• Immerse into Client Business
Drivers
Business Sense

30. Click to edit Master title
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www.zbconsulting.za.com
ZB Zinn & Botha Consulting
what defines you?
Thank you!
John Botha
082 457 0000
john@zbconsulting.za.com