Business studies term 1
summarised notes
Pg 4)
1.7) Compliance with the skills development act
- Employers must register with a SETA, pay 1% of payroll, and submit a skills plan with proof to claim funds.
1.8) actions regarded as fraudulent
- Offenses include submitting false documents, offering employment services without registration, and
running a private employment agency against the Skills Development Act.
Pg 5)
1.9) penalties
- Anyone convicted of fraud, employer or employee, may face a fine or imprisonment.
1.10) national skills development strategy and human resources development strategy
- SETAs are a government initiative to implement national skills and human resource development strategies.
- Functions: Develop and implement sector skills plans under the national strategy. Promote and register
learnerships. Apply for SAQA accreditation.
Pg 6)
,Labour relations act no.66 of 1995 as amended by act 12 of 2002
2.1) nature of the act
- The Labour Relations Act regulates relationships between employees, unions, employers, and their
organisations, amends labour laws to promote sound labour relations, and supports constitutional rights
such as access to healthcare, food, water, and social security.
2.2) Purpose of the act
- The Act provides simple procedures for registering trade unions and employer organisations, regulates
bargaining and statutory councils, allows workplace forums for employee participation, and establishes the
CCMA as well as Labour and Labour Appeal Courts to resolve labour issues.
2.3) advantages and disadvantages for employers
Advantages
- The Act provides mechanisms like statutory councils, collective bargaining, and the CCMA to resolve labour
disputes quickly and cost-effectively, while also protecting employers who undertake lawful lockouts after
failed negotiations.
Disadvantages
, - Legal strikes can significantly reduce business productivity and profitability, negotiations are
time-consuming, and employers may face high costs from hiring labour relations specialists.
Pg 7)
2.4) advantages and disadvantages for employees
Advantages
- The Act protects employees who participate in lawful strikes and safeguards them against unfair dismissal
through strict guidelines.
Disadvantages
- Unions may force strikes on unwilling members, causing loss of income for households and increasing safety
risks as strikes can become violent.
2.5) rights of employers
- Employers are free to join employer organisations, may dismiss workers for misconduct during strikes, and
can claim compensation through the Labour Court for losses from unprotected strikes or lockouts.
2.6) Rights of employees
- Trade union representatives are entitled to paid time off during working hours to perform their duties, and
employees may claim compensation from the Labour Court for losses caused by an unprotected strike or
lock-out.
, 2.7) compliance requirements by employers
- Employers may not stop employees from joining or participating in trade unions, even if this affects
production, must disclose certain workplace information to union representatives, and may be required to
implement an agency shop where non-union members pay an agency fee into a Department of
Labour–administered fund.
2.8) Penalties for non-compliance:
● An agreement reached between employers and unions at a bargaining council is legally enforceable. If any
party fails to comply, an arbitrator may impose a fine.
● The minister may publish a notice in the Government Gazette setting maximum fines for:
● breaching a collective agreement.
● failing to pay arbitration costs.
● repeated breaches of the agreement.
2.9) Actions that contravene the act:
● Preventing employees from joining or remaining in a union or workplace forum.
● Refusing leave for union or workplace forum activities.
● Unfair or illegal dismissal of employees.
● Cancelling employees’ contracts when a business is transferred as a going concern.
Employment equity act no. 55 of 1998 as uploaded by notice no. 733 of 2009:
3.1) Nature of the act:
● It was introduced to address ongoing inequalities caused by apartheid-era discrimination. Simply repealing
laws was not enough to fix unequal employment, occupation, and income.
summarised notes
Pg 4)
1.7) Compliance with the skills development act
- Employers must register with a SETA, pay 1% of payroll, and submit a skills plan with proof to claim funds.
1.8) actions regarded as fraudulent
- Offenses include submitting false documents, offering employment services without registration, and
running a private employment agency against the Skills Development Act.
Pg 5)
1.9) penalties
- Anyone convicted of fraud, employer or employee, may face a fine or imprisonment.
1.10) national skills development strategy and human resources development strategy
- SETAs are a government initiative to implement national skills and human resource development strategies.
- Functions: Develop and implement sector skills plans under the national strategy. Promote and register
learnerships. Apply for SAQA accreditation.
Pg 6)
,Labour relations act no.66 of 1995 as amended by act 12 of 2002
2.1) nature of the act
- The Labour Relations Act regulates relationships between employees, unions, employers, and their
organisations, amends labour laws to promote sound labour relations, and supports constitutional rights
such as access to healthcare, food, water, and social security.
2.2) Purpose of the act
- The Act provides simple procedures for registering trade unions and employer organisations, regulates
bargaining and statutory councils, allows workplace forums for employee participation, and establishes the
CCMA as well as Labour and Labour Appeal Courts to resolve labour issues.
2.3) advantages and disadvantages for employers
Advantages
- The Act provides mechanisms like statutory councils, collective bargaining, and the CCMA to resolve labour
disputes quickly and cost-effectively, while also protecting employers who undertake lawful lockouts after
failed negotiations.
Disadvantages
, - Legal strikes can significantly reduce business productivity and profitability, negotiations are
time-consuming, and employers may face high costs from hiring labour relations specialists.
Pg 7)
2.4) advantages and disadvantages for employees
Advantages
- The Act protects employees who participate in lawful strikes and safeguards them against unfair dismissal
through strict guidelines.
Disadvantages
- Unions may force strikes on unwilling members, causing loss of income for households and increasing safety
risks as strikes can become violent.
2.5) rights of employers
- Employers are free to join employer organisations, may dismiss workers for misconduct during strikes, and
can claim compensation through the Labour Court for losses from unprotected strikes or lockouts.
2.6) Rights of employees
- Trade union representatives are entitled to paid time off during working hours to perform their duties, and
employees may claim compensation from the Labour Court for losses caused by an unprotected strike or
lock-out.
, 2.7) compliance requirements by employers
- Employers may not stop employees from joining or participating in trade unions, even if this affects
production, must disclose certain workplace information to union representatives, and may be required to
implement an agency shop where non-union members pay an agency fee into a Department of
Labour–administered fund.
2.8) Penalties for non-compliance:
● An agreement reached between employers and unions at a bargaining council is legally enforceable. If any
party fails to comply, an arbitrator may impose a fine.
● The minister may publish a notice in the Government Gazette setting maximum fines for:
● breaching a collective agreement.
● failing to pay arbitration costs.
● repeated breaches of the agreement.
2.9) Actions that contravene the act:
● Preventing employees from joining or remaining in a union or workplace forum.
● Refusing leave for union or workplace forum activities.
● Unfair or illegal dismissal of employees.
● Cancelling employees’ contracts when a business is transferred as a going concern.
Employment equity act no. 55 of 1998 as uploaded by notice no. 733 of 2009:
3.1) Nature of the act:
● It was introduced to address ongoing inequalities caused by apartheid-era discrimination. Simply repealing
laws was not enough to fix unequal employment, occupation, and income.
