HRTorQue Outsourcing
HRTorQue Reporter
May 2018
 
HRTorQue Reporter Archive
Table of Contents
1. Employer Filing Season for IRP5s and EMP501s - Deadline 31 May 2018
2. Compensation Fund Annual Return of Earnings - Deadline 31 May 2018
3. Exemption from Income Tax on Foreign Employment Income
4. Conflict Potential
5. Encouraging Employee Performance
6. Racism in the Workplace and Hate Speech
7. Contact HRTorQue

Should you require any further detail on any of these topics, please feel free to contact us.
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1. Employer Filing Season for IRP5s and EMP501s
Author: Jonathan Aitken
Please don't forget to submit your employer filings (EMP501s and IRP5s) by the deadline of the 31 May 2018. This is for the tax year ended 28 February 2018.

Getting the reconciliation to work can sometimes be tricky, particularly with SARS system verification changes. Please don't leave it to the last minute.
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2. Compensation Fund Annual Return fo Earnings - Deadline 31 May 2018
Author: Jonathan Aitken
The W.As. 8 can be filed online (CF-Filing) on the Compensation Fund website, up until the revised deadline of the 31 May 2018.

The fund will immediately calculate the assessment amount and issue an invoice to the employer online. This can be paid and as soon as payment is received the Fund will issue the employer with a Letter of Good Standing (LOGS).

The Compensation Fund is running a number of workshops towards the end of May to help employers with the CF-Filing system.

Editor's Note: Apparently employers new to the Compensation Fund can now register online (but we have not tested this yet).
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3. Exemption from Income Tax on Foreign Employment Income
Author: Dave Beattie
With more and more companies opening operations in Africa and around the world it is imperative that they are au-fait with the Employees Tax legislation on sending employees off-shore. SARS Interpretation Note 16 (issue 2) was published on 2 February 2017 to provide an explanation of the legislation and particularly the requirements that need to be met for the employee to qualify for the applicable exemption. All employers are requested to read the legislation to ensure that they are familiar with the qualifying criteria as SARS clearly places the onus on the employer to make the correct interpretation of any particular deployment / transfer.

In order to qualify for the exemption, a taxpayer must:
•   earn certain types of remuneration (remuneration earned for services rendered);
in respect of services rendered by way of employment (there must be an employment relationship and an employment contract);
outside the Republic (the landmass of SA and its territorial waters - 22.2 km);
during specified qualifying periods (for a period or periods exceeding 183 full days in aggregate during any period of 12 months, a person must also have rendered services outside the Republic for a continuous period exceeding 60 full days in the same period of 12 months); and
not be subject to an exclusion (holding of public office).

In summary, and to ensure that employers are fully aware of their obligations in these situations, it is important to confirm the following.

An employer that is satisfied that the provisions of section 10(1)(o)(ii) will apply in a particular case may elect not to deduct employees' tax in a particular case. In the case where the exemption was not applicable, the employer will be liable for the employees' tax not deducted as well as the concomitant penalties and interest. It is the employer that bears this risk and it is therefore very important that they ensure that the circumstances of each case are carefully evaluated and that the correct tax treatment is applied.

Should you have any doubts regarding the interpretation process or require assistance working through this evaluation please do not hesitate to contact Dave Beattie on [email protected] or 031 582 7410.
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4. Conflict Potential
Author: Jonathan Aitken
When clients subscribe to our HR Admin product, our administrators come to a client's premises for a set number of days per week/month. This gives us unique insights into the practical day-to-day employee issues clients face.

Conflict in the workplace is common place and can arise for a number of reasons. One of the key reasons we see conflict arising stems from uncertainty faced by employees:
•  There are no Job Profiles in place with clear expectations and measurements.
•  Managers do not have the skills to assist employees set and achieve goals.

Tip: Involve employees to assist you in formalising their Key Performance areas.

If you have been considering why you are experiencing conflict and non-performance on a daily basis, turn your thoughts to the possibility that employees may not know exactly what's expected of them.

Managers assess and implement individual work standards and timing according to what they believe is possible and reasonable. Naturally, these would differ between the Managers and conversations with employees inevitably end up in conflict, refusals to obey instructions, and decreased employee morale.

If a company makes an objective assessment of reasonable inputs and outputs based on work-study results or previous experience, and obtains the input and sign off from employees, they are more likely to enjoy stress free management, increased employee initiative, and reliance on employees meeting their KPAs responsibly and independently.
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5. Encouraging Employee Performance
Author: Melany Bydawell
In addition to Job Profiles and Key Performance areas, employees need to know when they're performing well and when they're not.

Effective managers assist in clarifying expectations and provide clear, timeous communication relating to the employee's work structure and priority of tasks.

They hold employees responsible and accountable for their input and output, and make themselves available to assist the employee with their questions. They also ensure ongoing support and regular feedback.

After setting expectations, effective managers do not walk away hoping that the task will 'just be done'. Regular measurement and feedback is essential. This 'employee engagement' plays a crucial role in supporting company growth.

What is responsibility and accountability?

The responsible person is the individual who actually completes the task and is the person responsible for action / implementation. Responsibility can be shared. The degree of responsibility is determined by the individual with the "accountability".

The accountable person is the individual who is ultimately answerable for the activity or decision.

The main difference between responsibility and accountability is that responsibility can be shared while accountability cannot. Being accountable not only means being responsible for something but also ultimately being answerable for your actions. Also, accountability is something you hold a person to only after a task is done or not done. Responsibility can be before and/or after a task.
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6. Racism in the Workplace and Hate Speech
Author: Nicky Hardwick
There has been a lot to talk about on this topic following on from the Constitutional Court Ruling on 17th May 2018 in the matter between Rustenburg Platinum Mine vs South African Workers Association obo Meyer Bester.

In summary, the facts and history of the case leading up to the Constitutional Court are as follows.

The case relates to an incident in 2013 wherein Mr Bester pointed his finger at a fellow worker and told him "verwyder daar die swart man se voertuig". Mr Bester was charged with insubordination and making racial remarks and was dismissed following a disciplinary enquiry. During the enquiry he denied ever saying the words "swart man" and was unrepentant and confrontational with the employer's witness.

The matter was referred to the CCMA and the Commissioner found that "swart man" was a descriptor and not racist. The dismissal was found to be both substantially and procedurally unfair.

The matter was then taken to Labour Court on review. The Labour Court found that referencing a person as "swart man" was in fact racist and derogatory and that Mr Bester was fairly dismissed.

Mr Bester then lodged an appeal in the Labour Appeal Court. The Court found that taking into account the context in which the phrase was used, the inference was that the phrase was not necessarily racist and derogatory and the dismissal was therefore found to be unfair both substantively and procedurally.

Finally the matter went to Constitutional Court which found the following:
•   The Labour Appeal Court's point that the phrase was neutral did not take into account or recognise the legacy of apartheid and racial segregation which has resulted in us living in a country that is racially charged.
CCMA and The Labour Appeal Court also failed to take into account the circumstances around the use of the phrase "swart man".
Mr Bester also did not show any remorse for his actions and had made no attempt to apologise.

The Constitutional Court found that the dismissal was the appropriate sanction.

This decision is an important one because it deals with the more subtle and less obvious forms of racism and assists in creating a test for determining whether a neutral statement is in fact neutral or racist.

As employers, it is imperative that we understand our obligations in this regard and have adequate policies, rules and procedures in place to ensure that employees understand what is and is not acceptable as well as what the consequences are if they transgress. This is especially true taking into account the Bill for "The Prevention and Combating of Hate Crimes and Hate Speech Bill".

The Bill aims to provide protection for person or persons against any form of communication which is threatening, abusive or insulting.

Once adopted, this Bill will criminalise hate speech and hate crimes which often take place in the workplace. This Bill will now make employees susceptible to disciplinary and civil action as well as criminal prosecution.

We are entering a time where people will be held accountable for their actions and as employers we need to be moving forward too.

If you require assistance with policies and procedures relating to racism in the workplace, please feel free to contact [email protected] for assistance.
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7. 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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