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HRTorQue REPORTER
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Table of Contents |
HRTorQue Outsourcing will be shutting down on 20 December 2013 and
re-opening on 6 January 2014.
1. Cyberloafing - Costing US Companies Billons Each Year
2. The Sexual Offences Amendment Act and Employers
3. Writing Effective Emails
4. Fixed Term Contracts
5. Mozambique - Tax Rate Changes
6. Notice: Minimum Wage for Hospitality Sector
7. Workplace Ethics - Definitions and Statements
8. Employees' Tax Review
9. Contact the HRTorQue Team |
1. Cyberloafing - Costing US Companies Billons Each Year |
Author: Melany Bydawell |
According to a Strategy + Business report, 'Cyberloafing', or employees goofing off on the Internet during work hours, searching for easy apple pie recipes, updating their Facebook status, or sending personal emails is one of the downsides of the uniquely modern workplace. It can be difficult to measure, because employees can appear to be hard at work when they're actually wasting your time, their time and your money.
The report says a 2010 study found that the average US employee admits to whiling away more than two working hours each day online, which, researchers estimate, equals an annual productivity loss of as much as $85bn each year for US firms. Also, the report says, cyberloafing poses additional threats: the loss of bandwidth for conducting real company business, the risk of computer viruses, and potential legal issues resulting from employees' online activity.
A defined Internet usage policy is a good deterrent but also, the researchers said, employees need to be given a sense of meaning in their work that keeps them engaged and focused. This is coupled with good management practices and reasonable application of policies. |
2. The Sexual Offences Amendment Act and Employers |
Author: Marc Hardwick |
• Are you within EDUCATION, HOSPITALITY OR MEDICAL industries?
• Do your employees have ACCESS to CHILDREN or MENTALLY CHALLENGED individuals?
Failure to comply with the Sexual Offences Amendment Act could result in up to 7 years in prison and/or a fine!
The Sexual Offenders Register, which was promulgated in 2007 as part of the new Sexual Offenses Amendment Act, is now functional.
The obligations of the employer, in respect of this legislation, require that all employers must, in the prescribed manner, apply to the Registrar for a prescribed certificate, stating whether or not the particulars of the employee are recorded in the Register. In other words, the employer is required to ensure that the employ is not a registered sexual offender against a child and/or mentally challenged individual. These checks must also be done on volunteers as well as individuals who you intend on employing.
It is important to bear in mind that having these checks in place are not optional but mandatory. Failure to comply with the Act and conduct these prescribed checks could result in up to 7 years in prison and/or a fine. It is important to note that not only can the business owner be liable but also any individuals who participate or assist in the management or operation of the entity or business. Any employer who determines that an employee is on the Register at the time of the check, or any time thereafter, is required to terminate the employees employment or, where possible, move them to a position in which they will have absolutely no access or contact with a child.
HRTorQue, in association with The Guardian, can conduct these checks for you at your premises for all employees. The service includes:
• Completion of the prescribed employers forms
• Completion of the prescribed employee forms
• Biometric / Electronic fingerprinting done for all employees
• Affidavits completed and certified
• Submission of forms to the Registrar
• Regular follow up with Registrar until certificates are received by Employer (approximately 6 to 8 weeks)
All the above is done at your premises and each staff member would be away from their workstation for +- 5mins.
| No. of Employees |
Cost |
| 1 - 4 employees |
R 450 per employee |
| 5 - 10 employees |
R 2 000 |
| 11 - 25 employees |
R 2 000 for the first 10 employees and R 175 per employee thereafter. |
| 26 - 50 employees |
R 2 000 for the first 10 employees and R 150 per employee thereafter. |
| 51+ employees |
R 2 000 for the first 10 employees and R 120 per employee thereafter. |
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Contact Marc Hardwick on [email protected] or 083 796 6554. |
3. Writing Effective Emails |
Author: Melany Bydawell |
1. Do you experience positive responses to your emails?
2. Miss important information?
3. Are you sure that the impression you are creating for yourself and your company is a positive one?
When you compose an email message, there are some simple rules that you can follow to ensure that your emails make a positive impression, and get you the response you want. In an up and coming workshop we will look at these and other challenges in writing effective emails. |
4. Fixed Term Contracts |
Author: Bruce MacGregor (MacGregor, Erasmus Attorneys) |
INTRODUCTION
This is an explanatory overview and guideline in respect of the amendments to the Labour Relations Act for Fixed Term Contracts (FTCs), and more specifically Section 198B.
APPLICATION OF SECTION 198B
The first issue to determine with regards to entering into an FTC would be to ascertain whether Section 198B applies to the specific organisation, or the specific individual to be employed.
Section 198B(2) states the following:
"198B(2) - This section does not apply to:
| a. |
employees earning in excess of the threshold prescribed by the Minister in terms of Section 6(3) of the Basic Conditions of Employment Act (currently this amount sits at R183,008.00 per annum); |
| b. |
an employer that employs less than ten employees, or that employs less than fifty employees and whose business has been in operation for less than two years, unless:
(i) the employer conducts more than one business; or
(ii) the business was formed by the division or dissolution for any reason of an existing business; and |
| c. |
an employee employed in terms of a Fixed Term Contract which is permitted by any statute, sectoral determination or collective agreement." |
What this would tend to indicate is that a contract entered into, for example, with an employee who earns over the threshold, will not have to comply with this specific section and the FTC would in these circumstances be permissible to be for a period in excess of three months without any formal justification. This section is also important to small employers as stated in sub-section (b) above, as again this section would not apply to those types of undertakings. Should the employer be an undertaking that the section would apply to it, then set out hereunder are the further considerations which would need to be taken into account.
LENGTH OF FTC
The first consideration which would need to be made by the employer would be regarding what period they require the employee to work. Should the employee be a solution for a short-term problem, then an FTC can still be entered into, such as in terms of the Act prior to the amendments for this period. The difficulty which the amendments do create however, is that should the employer require an employee for longer than this period, a formal justification would be required for any FTC entered into for longer than the three month period.
In terms of the amendments, the Act sets out the possible justifications one could have for an FTC over the three month threshold. These are the following:
"4. Without limiting the generality of sub-section 3, the conclusion of a Fixed Term Contract will be justified if the employee:
| a. |
is replacing another employee who is temporarily absent from work; |
| b. |
is employed on account of a temporary increase in the volume of work which is not expected to endure beyond twelve months; |
| c. |
is a student or recent graduate who is employed for the purpose of being trained or gaining work experience in order to enter into a job or profession; |
| d. |
is employed to work exclusively on a specific project that has a limited or defined duration; |
| e. |
is a non-citizen who has been granted a work permit for a defined period; |
| f. |
is employed to perform seasonal work; |
| g. |
is employed for the purpose of an official public works' scheme or a similar public job creation scheme; |
| h. |
is employed in a position which is funded by an external source for a limited period; or |
| i. |
has reached the normal or agreed retirement age applicable in the employer's business." |
This formal justification would have to be reflected in the employee's contract as to indicate that the employer has a reason for the FTC to be longer than the three month period.
RENEWAL OF AN FTC
Should an employer at any given stage attempt to renew an FTC, either one which was previously below the three month threshold, or, which would now then go over such period, or alternatively an FTC which was already over the three month period but which would require to be renewed, would have to extend such an offer to the employee for renewal in writing and would furthermore have to state the reasons for this renewal, as contemplated by the justifications set out above.
NATURE OF EMPLOYER'S WORK
A further aspect which needs to be considered is that an employer may employ an employee using an FTC for a duration longer than three months should the nature of the work for which the employee is employed be of a limited or definite duration. Again, this would link into one of the justifications regarding the specific project for which an employee may be employed or for a specific set of deliverables that the company could suggest.
FTCs EXCEEDING 24 MONTHS
One final aspect that an employer will also be required to consider, with regards to FTCs, would be that any employee who is employed to work exclusively on a specific project that has a limited or defined duration, and where such contract exceeds a twenty four month period, would be entitled to the payment of one week's remuneration for each completed year of the contract, calculated in accordance with Section 35 of the Basic Conditions of Employment Act on the expiry of this contract.
The only time that this payment would not be applicable would be if the employer had offered the employee employment or procures employment for the employee with a different employer, which commences at the expiry of the contract and on the same or similar terms.
CONCLUSION
Therefore, should the employer follow the steps as set out above with regards to entering into an FTC with an employee, they would fall in line with the amendments to the Labour Relations Act.
However, should the employer fall foul of Section 198B and the justification provided for offering an FTC or renewing an FTC for a period in excess of three months is not accepted, the specific FTC would be deemed to be of an indefinite duration, ostensibly the employee would be a permanent employee. Therefore, as stated above, this memorandum is to assist an employer in determining whether the position which is available requires the employee to enter into an FTC for a period of three months or, alternatively, if there is some form of justification as to why the FTC could be for a period longer than that. This would simply mean that an employer would now have to pay more consideration to its operational requirements when entering into FTCs and should the employer follow the requirements set out above correctly, they could quite easily continue to utilise FTCs when employing individuals.
Contact Melany Bydawell or Nicky Hardwick for assistance. |
5. Mozambique - Tax Rate Changes |
| Author: Karen van den Bergh |
It has been brought to our attention that the Minister of Finance amended the Income Tax (Amendment) Act with effect from 1 July 2013.
Tax Year
The financial tax year in Mozambique is January to December.
Tax Tables
Residents are taxed on a non annualised monthly table using Personal Income Tax table (IRPS) - Imposto sobre o Rendimento das Pessoas Singulares. IRPS due by persons that reside in Mozambican territory is payable on all their income, including income earned outside Mozambique. In relation to non-residents, IRPS is only due on income obtained in Mozambican territory. |
6. Notice: Minimum Wage for Hospitality Sector |
Author: Karen van den Bergh |
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7. Workplace Ethics - Definitions and Statements |
Author: Melany Bydawell |
Mutual Respect:
To recognise & acknowledge the talents & contributions of other employees.
To treat other employees with dignity & courtesy.
Loyalty:
To remain faithful & committed to the organisation.
Self Discipline:
To demonstrate self control while at work & to be motivated to work hard.
Teamwork:
To actively participate as a member of the team, helping the team to achieve its goals & objectives.
Honesty:
To be truthful & sincere at all times.
Trust:
To demonstrate integrity & reliability at work.
Openness:
To be willing to consider new or different ideas without bias or prejudice.
Responsibility:
To accept accountability for job, assigned tasks & behaviour at work.
Communication:
To clearly & regularly communicate relevant information to relevant people in the organisation.
Fairness:
To act in a just manner at all times.
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8. Employees' Tax Review |
Author: David Beattie |
Do you want to avoid the financial implications of a visit from SARS?
We can provide you with a payroll review and opportunity to correct any irregularities in advance (with a minimum cost of R 2 500 plus VAT).
With the South African Revenue Services being put under increasing pressure by central Government to collect more money we have seen a dramatic increase in the compliance audits being conducted. These audits are very focussed, with the auditors spending less than a day investigating legislative compliance in the following specific areas:
The tax treatment of company vehicles provided to employees, with particular attention paid to:
• Identification of the vehicles on the asset register and the determination of which employees have the right
of use of such vehicles
• The correct calculation of the company car fringe benefit
The allocation of travel allowances to employees, with particular attention paid to:
• The company's policy regarding the allocation of travel allowances (who receives them)
• The formula used to determine the value of travel allowances allocated to employees
• Determining whether travel allowances had been taxed after taking into account the employees travel
requirements
• Review of the employment contract to establish whether the travel allowance allocated is correctly
described therein
Identification of potentially untaxed benefits given to employees, with specific focus on:
• 'Employee of the month awards'
• Rewards for achieving performance targets
• Services provided to employees free of charge
• Employees receiving company assets for no value or at less than market value
SARS has also stepped up the introduction of new legislation and issued clarifying statements in the form of Interpretation Notes. These Interpretation Notes cover issues such as:
• Long service awards
• Company cars (vehicles acquired via an operating lease or rental)
• Taxation of employees earning multiple salaries
• Tips paid to employees
• Bursaries awarded to relatives of employees
Many of these issues are being targeted in the audits to establish whether organisations are correctly applying the legislation.
It is clear from our interaction with clients that many of them are incorrectly applying these new Interpretation Notes. Whilst many organisations outsource their payroll for the comfort of knowing that it is managed in a legislatively compliance manner, the reality is that the service provider can only ensure legislative compliance if they are aware of all of the facts surrounding payments to employees. The challenge here is that most employers do not have the technical knowledge or time to unpack such issues and as a consequence legislative non-compliance is common.
HRTorQue Outsourcing is well placed to fill this gap.
The approach used is to unpack the various issues with the client through a process known as an ' Employees' Tax Review'. This review takes a maximum of 3 hours at the client's premises and includes a review of:
• The payslips
• Contracts / letters of appointment
• Rules of any benefit funds
The findings of this review are presented in a practical manner via an easy to understand report presented to the management team.
If you would like further information on this process or would like to have such a review undertaken in your organisation kindly contact Dave Beattie on either 031 582 7410 or [email protected]. A quote will be prepared for all enquiries, with the price of the review being dictated by the size of the entity and scope of the review. |
9. Contact the HRTorQue Team |
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Sales
Melany Bydawell: 031 582 7425 / 083 441 5618
[email protected]
Payroll & HR Administration
Karen van den Bergh: 031 582 7413 / 082 891 1722
[email protected]
Human Resources / Employee Relations
Melany Bydawell: 031 582 7425 / 083 441 5618
[email protected] |
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