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| Should you require any further detail on any of these topics, please feel free to contact us. |
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1. When can a medical certificate be requested?
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| Author: Karen van den Bergh |
An employee who is off sick for more than two consecutive days (in other words, 3 days or more) is required to produce a medical certificate signed by a medical practitioner or any other person who is certified to diagnose and treat patients, and who is registered with a professional council established by an Act of Parliament.
In other words, a medical certificate signed by a clinic sister or traditional healer is not acceptable (unless they are registered). If the employee does not produce the required medical certificate as above, then the employer is entitled to treat the period of absence as unpaid leave, although the employee is entitled to request that it be taken as paid annual leave.
It is unlawful for an employer to insist that an employee produce a medical certificate for an absence on a Friday, or on a Monday, or on the Friday and the Monday, or for an absence on the day before or the day after a public holiday.
That said, if an employee is absent on more than two occasions (even if only for one day) during the same eight-week period, then for any further absence, the employer is entitled to insist on a medical certificate, even if the absence is for only one day, and if it is not produced, then the employer is entitled to treat that absence as unpaid leave. |
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| 2. The Future of Work - Big Data, Data Analytics & Artificial Intelligence (AI) |
| Author: Jonathan Aitken |
Editor's Note: Industry 4.0 is coming. The purpose of our series is to get employers thinking about ways to use this new technology to improve their business; and for HR professionals to understand the impact this might have on the workforce and their own roles requiring greater analytical abilities.
In our second edition of the Future of Work, we look at Big Data, Data Analytics and AI. How is this connected to the Future of Work you ask? It plays directly into what work is done by employees by focusing attention on using tools and software to access data that can be analysed to drive efficiencies in all parts of the business.
Let me give you a few examples:
Example 1 - Time and Attendance:
Time and attendance systems currently perform one of two functions, viz. time recording for payroll and access control. With new technologies however, the next step in time and attendance could be the introduction of facial recognition software to track employee movements around the operation.
This data could then be analysed to identify a number of key operational issues:
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At a basic level how much time is spent on non-productive tasks e.g. smoke/tea breaks / walking around finding equipment / setting up equipment etc. |
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At a more sophisticated level top performers could be analysed to see what they do differently. This could be combined with Six Sigma to better design work stations to improve the output per shift. |
Note: This example is purely about using data to improve existing work conditions. It does not look at using robotics and AI to perform specific tasks. There are already cameras with this type of functionality. The next step will be building these into applications which can be rolled out to meet specific client requirements.
Example 2 - Office Based Performance
There are already a number of tools available to operations to track performance and create data points for improving efficiencies e.g. logistics companies have software to track routes, fuel usage, speeds, weather conditions etc.
There are fewer tools available for improving office performance and most look at ways to improve communication between and within teams.
A potential use of data analytics and AI in the future would be for companies to collect data on employees using their PC's and then use AI tools to analyse this data and report key outcomes to HR (This type of analysis would be naturally too cumbersome for an individual IT technician to repeat on an economic scale).
These could include:
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At a basic level, identifying time spent working vs trawling the internet; |
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Identifying training needs e.g. |
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assuming excel is still used extensively, identifying those employees who would benefit from additional training to improve their output; or |
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checking grammar or tone of emails to identify employees requiring soft skills training; or |
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gauging customer reactions to employee emails to identify ways to improve communication and identify customer relationship issues early on; |
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Improving security by identifying early on any security breaches; |
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Identifying behavioural changes (stress related); or |
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Monitoring key performance metrics real-time; |
Example 3 - 5G
5G networks are being rolled out in several countries in 2019. The advantage of these networks is the increased speed through the cellular network enabling downloads of >20MBPS and in some cases up to 100MBPS. While not clear when this might be available in South Africa, the 5G roll-out creates the opportunity for every smartphone or compatible device to be used as a monitor for specific activity. This immediately provides an opportunity to collect data on the workforce and assets even if they are not contained within a smaller operational area.
The key takeaways for employers with these tools will be:
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Identifying where value is currently created/lost in the organisation and workforce; |
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Identifying metrics and data linked to these value items; |
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Using tools (Monitors/AI/Data Analytics/Business Intelligence) to collect and analyse data to monitor and report on these metrics to improve these areas. |
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| 3. Taxation of Foreign Employment Income |
| Author: Jonathan Aitken |
Editor's Note: HRTorQue is able to assist both employers and employees in managing this far-reaching change. Feel free to contact us.
In April 2020, the taxation of foreign employment income will come into action. This amendment brings into remuneration (taxable income) all foreign employment income for South African resident tax payers subject to an exemption of one million Rand. This amendment will have significant implications for employers who have South African employees on their international payrolls. Treasury is already consulting with the Payroll Authors Group and other entities to consider whether the s(6)quat deduction for foreign employment tax can be practically applied in payrolls.
We would strongly recommend employers consider the impact of this amendment on their employees in advance of implementation. This will likely have an impact on both the employer and employee.
The amendment reads as follows:
"There shall be exempt from normal tax any form of remuneration to the extent to which that remuneration does not exceed one million Rand in respect of a year of assessment is received or accrues to any employee during a year of assessment by way of salary, leave pay, wage, overtime pay, bonus, gratuity, commission, fee, emolument or allowance including any income referred to in paragraph (i) in the definition of gross income in section one or an amount referred to in section 8, 8B or 8C, in respect of services rendered outside the Republic by that employee for or on behalf of any employer if that employee was outside the Republic." |
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| 4. Labour Court Issues Cost Order against Union and Union Official |
| Author: Jonathan Aitken (Source: Cowan Harper Madikizela Attorneys) |
The Labour Court in May handed down Judgment in the matter of Teti Traffic (Pty) Ltd v National Union of Metalworkers & Others (case no. J558/19) in which it ordered that the costs of an urgent application to the Labour Court declaring a strike unprotected was to be paid by NUMSA and its National Organiser.
In summary, the employer and NUMSA had negotiated a collective agreement which contained an agreement to, inter alia, establish a task team to explore the possibility of implementing a provident fund, medical aid scheme and the payment of a bonus. Several months later, after several meetings of the task team, no agreement on those issues could be reached and the Union referred another mutual interest dispute to the CCMA. It did so despite the fact that the issues were regulated by the collective agreement. The employer then approached the Labour Court on an urgent basis and obtained an interim Order declaring the strike unprotected and interdicting NUMSA and its members from participating in any strike.
On the return day, NUMSA conceded that the issue in dispute was regulated by the collective agreement and that the strike was unprotected. The employer nevertheless sought an Order directing NUMSA and the Organiser who had represented NUMSA throughout the relevant period to pay the employer's legal costs, jointly and severally. The Labour Court was particularly critical of the Official's conduct and found that the circumstances warranted an appropriate costs order.
Orders directing a Union or its officials to pay an employer's legal costs are rarely made, particularly in circumstances where there is an ongoing relationship with the employer. The Judgment is therefore unique and indicates that the Labour Court is prepared to grant costs orders in appropriate circumstances. The Judgment is important and serves as a stern warning to Unions and their officials to pursue only legitimate disputes or run the risk of adverse costs orders being made against them. |
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| 5. Kenyan National Housing Development Fund Implementation Delayed |
| Author: Jonathan Aitken (Source: www.crs.co.za) |
On Monday, 27 May 2019, the implementation of the National Housing Development Fund (NHDF) levy was extended by the Employment and Labour Relations Court, barring the government from implementing the disputed 1.5% housing levy.
The housing levy was to take effect in May following a public notice by the government in April ordering employers to deduct and remit the levy by the 9th of every succeeding month.
The case was initially filed by Central Organisations of Trade Unions (Cotu). The case was also filed by various other parties that include Central Organisation of Trade Unions (COTU), Trade Union Congress of Kenya, Consumers Federation of Kenya (CoFeK) and the Federation of Kenyan Employers (FKE) challenging the levy. |
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| 6. Increase in South African Tax Filing Threshold to R500,000 |
| Author: Jonathan Aitken |
Editor's Note: HRTorQue's tax team can file your individual tax return for you. We have a special 10% discount for employees of our clients. Please contact us for more info.
On Tuesday, 4 June, the SARS Commissioner announced that SARS has increased the tax return threshold from R350,000 per annum to R500,000 per annum.
This means that only people whose total employment income before tax is more than R500,000 per year will need to file their tax returns.
However, this is not the only test and individuals will not need to submit a tax return if all of the following criteria are met:
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Your total employment income for the year before tax is not more than R500 000; |
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You only receive employment income from ONE EMPLOYER for the full tax year. |
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You have no other form of income, e.g. car allowance, business income, and rental income, taxable interest or income from another job. |
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You don't have any additional allowable tax-related deductions to claim, e.g. medical expenses, retirement annuity contributions and travel expenses. |
If these criteria are not met then you will need to file a tax return.
Taxpayers who file their income tax returns at a SARS branch can do so from 1 August 2019.
Taxpayers who are registered for eFiling or have access to the MobiApp can file their income tax returns from 1 July 2019.
The closing dates for Tax Season are as follows:
• 31 October 2019 for branch filing.
• 4 December 2019 for non-provisional taxpayers who use eFiling and the MobiApp.
• 31 January 2020 for provisional taxpayers who use eFiling. |
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| 7. Mauritius Budget Speech |
| Author: Jonathan Aitken (Source: www.crs.co.za) |
On Monday, 10 June 2019, the Prime Minister and Minister of Finance and Economic Development, Pravind Jugnauth, delivered the last Budget Speech of the present Government.
Key Highlights of the Budget Speech
The budget deficit is estimated to maintain course at 3.2% of GDP for financial year 2019/2020. Public Sector Debt to GDP has increased to 63% in 2018, and Government plans to reduce the debt to 60% before 2021 by using part of the undistributed surplus of the Bank of Mauritius. Real GDP has been increasing at an annual average rate of 3.7% since 2015 and is forecast to rise further to 3.9% in 2019 and 4.1% 2020.
The inflation rate and unemployment has decreased over the last years.
The tax legislation will be amended to introduce rules on controlled foreign companies (CFC).
Personal Income Tax Measures
Income exemption thresholds for all categories of taxpayers for the income year 2019-2020 are being increased as follows:
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For a taxpayer who has no dependent or one dependent, the threshold will increase by MUR5,000; |
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For a taxpayer with two dependents, the threshold will increase by MUR20,000; |
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For a taxpayer with three dependents, the threshold will increase by MUR25,000; and |
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For a taxpayer who has four dependents, the threshold will increase by MUR45,000. |
The additional deduction for a child pursuing tertiary studies and relief for medical insurance premium will now be available for a maximum of 4 dependents instead of 3 dependents.
The additional income tax exemption of MUR50,000 will be granted to a retired or disabled person having more than one dependent, instead of being restricted to those having one dependent only.
The annual net income subject to tax at a lower rate of 10% has been increased from MUR650,000 to MUR700,000.
In addition, an individual deriving a basic salary including compensation not exceeding MUR50,000 in his first month, will benefit from a tax credit of 5% of his chargeable income, provided that his annual net income does not exceed MUR700,000.
Solidarity levy not applicable to lump sum income received by a person as pension or death gratuity, effective retrospectively as from 1st July 2017. However, the levy will now apply on an individual's share of dividend in a société (partnership) or succession. |
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| 8. Contact HRTorQue |
Durban
Phone: 031 564 1155 • Email: [email protected] • Website: www.hrtorque.co.za
Address: 163 Umhlanga Rocks Drive, Durban North, KwaZulu-Natal
Johannesburg
Ground Floor, West Wing, 6 Kikuyu Road, Sunninghill, 2191
Cape Town Office
Ground Floor, Liesbeek House, River Park, Gloucester Road, Mowbray, Cape Town, 7700
Bloemfontein Office
62 Kellner Street, Westdene, Bloemfontein
East London
24 Pearce and Tecoma Street, Berea, East London
Port Elizabeth
280 Cape Road, Newton Park, Port Elizabeth
Polokwane
125 Marshall Street, Polokwane
Nelspruit
Promenade Centre, First Floor, Suite 11A, Nelspruit |
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