Grade 12
BUSINESS STUDIES
Human Capital Part 2
- Robert Shabalala
Learners should be able to show an understanding of the legislative requirements regarding the
following:
LRA – Labour Relations Act 66 of 1995 (as amended)
• Collective bargaining
• Industrial action (strikes, lockouts, picketing and secondary action)
• Unfair treatment in the workplace
• Dismissals (incapacity, misconduct and operational reasons) and unfair dismissal
• The importance of discipline, disciplinary procedures and grievance procedures in the
workplace
• Substantive and procedural fairness
• The importance of setting work standards and the role of trade unions in worker discipline
and industrial relations (purpose, role and functions)
• The principle of a probation period
Basic Conditions of Employment Act 75 of 1997 as amended
o Purpose and impact of the act
o Discuss the following issues are covered in the Act: working hours, public holidays,
deductions, leave (sick leave, maternity leave, public holidays), notice periods
Dispute resolutions mechanisms:
o Trade unions
o Collective bargaining
o NEDLAC (National Economic Development and Labour Council)
o Bargaining structures
o CCMA
Human Capital Part 1 BBEEE Skills Development ACT
Scan us for more on this chapter!
,Table of Contents
Human Capital ................................................................................................................................................... 4
Unfair Treatment and Unfair Dismissal ........................................................................................................................ 4
Unfair Treatment at Work ............................................................................................................................................ 4
What Can employees Do About Unfair Treatment? .................................................................................................... 4
The Limitation Clause ................................................................................................................................................... 5
Unfair Dismissal ............................................................................................................................................................ 6
What is Training and Skills Development? ........................................................................................................... 8
Steps in Building a Training and Skills Development Programme ................................................................................ 8
The Role of SAQA in Training and Skills Development ............................................................................................... 10
Skills Development Act 97 of 1998 (SDA) in South Africa ..................................................................................... 11
Purpose of the Skills Development Act (SDA) ............................................................................................................ 11
The Role and Function of SETAs ................................................................................................................................. 12
Impact of the SDA on Businesses and Employees ...................................................................................................... 13
How Businesses Can Comply with the SDA ................................................................................................................ 14
The implication of the Skills Development Act (SDA) (No. 97 of 1998) on the human resources function ............... 15
Employee Evaluation and Performance Appraisal ............................................................................................... 15
What is Employee Evaluation? ................................................................................................................................... 15
What is a Performance Appraisal? ............................................................................................................................. 15
Common Performance Appraisal Methods: ............................................................................................................... 16
Legislation Impacting Human Capital ................................................................................................................. 17
Labour Relations Act (LRA) (No. 66 of 1995 ........................................................................................................ 17
Purpose of the LRA ............................................................................................................................................ 18
Impact of the LRA on Businesses and Employees ...................................................................................................... 18
How Businesses Can Comply with the LRA................................................................................................................. 19
Implications of Non-Compliance ................................................................................................................................ 20
Strike action...................................................................................................................................................... 21
1. Protected Strikes .............................................................................................................................................. 21
2. Unprotected (Illegal) Strikes............................................................................................................................. 21
3. Sympathy (Solidarity) Strikes ........................................................................................................................... 22
4. Go-Slow Strikes ................................................................................................................................................ 22
5. Work-to-Rule Strikes ........................................................................................................................................ 22
6. Sit-In Strikes (Occupation Strikes) .................................................................................................................... 23
7. Wildcat Strikes.................................................................................................................................................. 23
Substantive and Procedural Fairness in the Workplace ....................................................................................... 24
1. Dismissal Due to Incapacity .................................................................................................................................... 24
, 2. Dismissal Due to Misconduct ................................................................................................................................. 25
3. Dismissal Due to Operational Reasons (Retrenchment) ........................................................................................ 26
Discipline, Disciplinary Procedures, and Grievance Procedures in the Workplace .................................................... 27
Dispute Resolution Mechanisms in the Workplace.................................................................................................... 29
The Commission for Conciliation, Mediation, and Arbitration (CCMA) ..................................................................... 33
Basic Conditions of Employment Act (BCEA) (No. 75 of 1997) .............................................................................. 37
Purpose of the BCEA ................................................................................................................................................... 38
Implications of Non-Compliance with the BCEA ........................................................................................................ 41
Employment Equity Act (EEA) (No. 55 of 1998) ................................................................................................... 42
Purpose of the EEA ..................................................................................................................................................... 42
Broad-Based Black Economic Empowerment (BBBEE) Act ................................................................................... 47
1. Purpose of the BBBEE Act ....................................................................................................................................... 47
, Human Capital
Unfair Treatment and Unfair Dismissal
In South Africa, employees are protected from unfair treatment and unfair dismissal under
the Labour Relations Act (LRA) and other employment laws. These laws ensure that
workers are treated fairly and have recourse if their rights are violated.
Unfair Treatment at Work
• Discrimination: Employees being treated unfairly based on race, gender, disability,
religion, pregnancy, or other protected characteristics (violates the Employment
Equity Act).
• Unfair Workload Distribution: Some employees being overburdened with work
while others are favoured.
• Bullying and Harassment: Verbal abuse, threats, or intimidation from managers or
colleagues.
• Unequal Pay: Employees doing the same work but receiving different pay without
valid reasons.
• Unfair Promotion Practices: Qualified employees being overlooked for promotions
in favour of less qualified individuals due to favouritism or bias.
• Unlawful Deduction of Salaries: Employers deducting wages without legal grounds.
• Retaliation Against Employees: Employers punishing employees for raising
complaints or reporting misconduct (victimisation).
What Can employees Do About Unfair Treatment?
• Speak to Management or HR: Employees should first try to resolve issues internally
by reporting unfair treatment to their manager or human resources (HR)
department.
• Follow the Company’s Grievance Procedure: Every company must have a formal
process for lodging complaints. Employees should file a written grievance and
request a meeting to discuss their concerns.
• Report to the CCMA: If internal procedures do not resolve the issue, the employee
can take their case to the Commission for Conciliation, Mediation, and Arbitration
(CCMA).
• Seek Legal Assistance: Employees can consult a labour lawyer or trade union for
further support.
Page 4 of 51
BUSINESS STUDIES
Human Capital Part 2
- Robert Shabalala
Learners should be able to show an understanding of the legislative requirements regarding the
following:
LRA – Labour Relations Act 66 of 1995 (as amended)
• Collective bargaining
• Industrial action (strikes, lockouts, picketing and secondary action)
• Unfair treatment in the workplace
• Dismissals (incapacity, misconduct and operational reasons) and unfair dismissal
• The importance of discipline, disciplinary procedures and grievance procedures in the
workplace
• Substantive and procedural fairness
• The importance of setting work standards and the role of trade unions in worker discipline
and industrial relations (purpose, role and functions)
• The principle of a probation period
Basic Conditions of Employment Act 75 of 1997 as amended
o Purpose and impact of the act
o Discuss the following issues are covered in the Act: working hours, public holidays,
deductions, leave (sick leave, maternity leave, public holidays), notice periods
Dispute resolutions mechanisms:
o Trade unions
o Collective bargaining
o NEDLAC (National Economic Development and Labour Council)
o Bargaining structures
o CCMA
Human Capital Part 1 BBEEE Skills Development ACT
Scan us for more on this chapter!
,Table of Contents
Human Capital ................................................................................................................................................... 4
Unfair Treatment and Unfair Dismissal ........................................................................................................................ 4
Unfair Treatment at Work ............................................................................................................................................ 4
What Can employees Do About Unfair Treatment? .................................................................................................... 4
The Limitation Clause ................................................................................................................................................... 5
Unfair Dismissal ............................................................................................................................................................ 6
What is Training and Skills Development? ........................................................................................................... 8
Steps in Building a Training and Skills Development Programme ................................................................................ 8
The Role of SAQA in Training and Skills Development ............................................................................................... 10
Skills Development Act 97 of 1998 (SDA) in South Africa ..................................................................................... 11
Purpose of the Skills Development Act (SDA) ............................................................................................................ 11
The Role and Function of SETAs ................................................................................................................................. 12
Impact of the SDA on Businesses and Employees ...................................................................................................... 13
How Businesses Can Comply with the SDA ................................................................................................................ 14
The implication of the Skills Development Act (SDA) (No. 97 of 1998) on the human resources function ............... 15
Employee Evaluation and Performance Appraisal ............................................................................................... 15
What is Employee Evaluation? ................................................................................................................................... 15
What is a Performance Appraisal? ............................................................................................................................. 15
Common Performance Appraisal Methods: ............................................................................................................... 16
Legislation Impacting Human Capital ................................................................................................................. 17
Labour Relations Act (LRA) (No. 66 of 1995 ........................................................................................................ 17
Purpose of the LRA ............................................................................................................................................ 18
Impact of the LRA on Businesses and Employees ...................................................................................................... 18
How Businesses Can Comply with the LRA................................................................................................................. 19
Implications of Non-Compliance ................................................................................................................................ 20
Strike action...................................................................................................................................................... 21
1. Protected Strikes .............................................................................................................................................. 21
2. Unprotected (Illegal) Strikes............................................................................................................................. 21
3. Sympathy (Solidarity) Strikes ........................................................................................................................... 22
4. Go-Slow Strikes ................................................................................................................................................ 22
5. Work-to-Rule Strikes ........................................................................................................................................ 22
6. Sit-In Strikes (Occupation Strikes) .................................................................................................................... 23
7. Wildcat Strikes.................................................................................................................................................. 23
Substantive and Procedural Fairness in the Workplace ....................................................................................... 24
1. Dismissal Due to Incapacity .................................................................................................................................... 24
, 2. Dismissal Due to Misconduct ................................................................................................................................. 25
3. Dismissal Due to Operational Reasons (Retrenchment) ........................................................................................ 26
Discipline, Disciplinary Procedures, and Grievance Procedures in the Workplace .................................................... 27
Dispute Resolution Mechanisms in the Workplace.................................................................................................... 29
The Commission for Conciliation, Mediation, and Arbitration (CCMA) ..................................................................... 33
Basic Conditions of Employment Act (BCEA) (No. 75 of 1997) .............................................................................. 37
Purpose of the BCEA ................................................................................................................................................... 38
Implications of Non-Compliance with the BCEA ........................................................................................................ 41
Employment Equity Act (EEA) (No. 55 of 1998) ................................................................................................... 42
Purpose of the EEA ..................................................................................................................................................... 42
Broad-Based Black Economic Empowerment (BBBEE) Act ................................................................................... 47
1. Purpose of the BBBEE Act ....................................................................................................................................... 47
, Human Capital
Unfair Treatment and Unfair Dismissal
In South Africa, employees are protected from unfair treatment and unfair dismissal under
the Labour Relations Act (LRA) and other employment laws. These laws ensure that
workers are treated fairly and have recourse if their rights are violated.
Unfair Treatment at Work
• Discrimination: Employees being treated unfairly based on race, gender, disability,
religion, pregnancy, or other protected characteristics (violates the Employment
Equity Act).
• Unfair Workload Distribution: Some employees being overburdened with work
while others are favoured.
• Bullying and Harassment: Verbal abuse, threats, or intimidation from managers or
colleagues.
• Unequal Pay: Employees doing the same work but receiving different pay without
valid reasons.
• Unfair Promotion Practices: Qualified employees being overlooked for promotions
in favour of less qualified individuals due to favouritism or bias.
• Unlawful Deduction of Salaries: Employers deducting wages without legal grounds.
• Retaliation Against Employees: Employers punishing employees for raising
complaints or reporting misconduct (victimisation).
What Can employees Do About Unfair Treatment?
• Speak to Management or HR: Employees should first try to resolve issues internally
by reporting unfair treatment to their manager or human resources (HR)
department.
• Follow the Company’s Grievance Procedure: Every company must have a formal
process for lodging complaints. Employees should file a written grievance and
request a meeting to discuss their concerns.
• Report to the CCMA: If internal procedures do not resolve the issue, the employee
can take their case to the Commission for Conciliation, Mediation, and Arbitration
(CCMA).
• Seek Legal Assistance: Employees can consult a labour lawyer or trade union for
further support.
Page 4 of 51
