August 2013
.

HRTorQue REPORTER

Table of Contents

1. BEE Rating
2. Payroll Throughout Africa
3. Congratulations! Dave Beattie Completes his MBA
4. Outsourcing of Human Resources Services
5. Warning about SARS Scams
6. Tax Return Completion: R600 (incl. VAT)
7. Annual Earnings Threshold
8. Directories of Health, Wellbeing and HIV Service Providers
9. Protection from Harassment Act
10. Contact the HRTorQue Team

1. BEE Rating

Author: Melany Bydawell
We are pleased to advise that HRTorQue Outsourcing has scored excellently on the QSE Scorecard, and is categorised as a Level 2 Contributor to Broad Based BEE, meaning that our clients can claim 125% of their spend with us on their own scorecard.
 
Furthermore, due to our categorisation as "Value-Adding Supplier", our clients can claim a further 25% on their spend with us.

2. Payroll Throughout Africa

Author: Karen van den Bergh
.HRTorQue is able to process payroll for African countries outside of South Africa!
 
Contact Karen for more information: [email protected].

3. Congratulations! Dave Beattie Completes his MBA

We are proud to advise that in July 2013 Dave Beattie, our Tax Manager, completed his Masters in Business Administration (MBA).

Dave received a distinction for his dissertation titled 'Human Resources Outsourcing: A study of KwaZulu-Natal companies' use of outsourced human resources services, reasons and benefits'. This dissertation provides a unique insight into the rationale followed by SMME owners in dealing with the lack of skills in the human resources field, the cost of acquiring such skills, the time commitment required by managers / owners when dealing with HR issues and the level of respect for HR legislative compliance.

Importantly, the approach used to roll out an outsourcing strategy and the evaluation of the success or failure of such a strategy is researched to identify whether KZN SMMEs measure up to their counterparts elsewhere in South Africa and overseas. WELL DONE DAVE!

4. Outsourcing of Human Resources Services

Author: David Beattie
Having worked in the human resources outsourcing environment for almost 14 years, the operating dynamics of SMMEs has always fascinated me. With South African SMMEs being subjected to not only the turbulence caused by the world and European debt crisis but also unique, legislative complexities, the rationale applied by such SMMEs in making business decisions is relatively undocumented. My interest was particularly piqued by the rationale applied by SMME owners when deciding how to deal with the provision of human resource services to their employees. When faced with a decision as to what topic to tackle when doing my MBA dissertation, I decided to look into the reasons why KwaZulu-Natal SMMEs consider outsourcing their HR functions and the benefits that they receive by doing so.

Qualitative research using 15 in-depth interviews was conducted. The data generated was then analysed using a technique called Thematic Analysis (a technique identifying themes in the data). These themes were then refined to identify core themes which effectively provided the reasons for outsourcing the HR function.

The core themes identified are:
•  The shortage of employees with the necessary skills and experience to perform the internal HR function.
•  Cost is a critical factor in the decision as to how the HR function will be provided.
•  Time constraints at a management level are a factor that greatly impacts on the decision to outsource.
•  There is a healthy respect for legislative compliance in terms of both labour and payroll legislation.

Whilst outsourcing the HR function was generally regarded as the most suitable solution to overcome the above limitations, the rollout and evaluation of this strategy was given very little attention. SMMEs placed almost total reliance on the outsourced HR service provider to ensure that the roll out of the strategy was correctly done. Very disturbingly an evaluation of the performance of the HR outsourcing strategy was not done by any of the SMMEs analysed. Participants were of the opinion that unless there were major problems the strategy was working as required.

The value of a study such as this is that it provides important information to SMMEs looking to provide effective HR services to their employees. At the same time, it provides an important insight to outsourced HR service providers looking to target new markets. The decision-making process followed by SMMEs is relatively simplistic, with decision-makers wanting a solution that requires little or no management intervention.

Should you be interested in receiving additional information from this research or have any questions in this regard please contact me on 031 582 7410 or [email protected].

5. Warning about SARS Scams

Author: Karen van den Bergh
The tax season opened officially on July 1 and many law-abiding taxpayers are getting ready to do their bit. Unfortunately, so too are the shady individuals and gangs who operate phishing scams. Particularly concerning is the fact that the current crop of fraudsters are sending out email messages about fake refunds which look very realistic and may well fool many an unsuspecting taxpayer. While some fake notifications are obvious scams which can easily be identified, concern is mounting about emails originating from an [email protected] address. A worrying factor is that in their emails they are now starting to mention refund amounts that make sense to potential victims.

SARS has created a section on its website to alert South Africans of any scams or phishing attacks. "Members of the public are randomly emailed with false 'spoofed' emails made to look as if these emails were sent from SARS, but (which) are in fact fraudulent emails aimed at enticing unsuspecting taxpayers to part with personal information such as bank account details. Examples include emails that appear to be from [email protected], or [email protected] indicating that tax payers are eligible to receive tax refunds.

"Please note these are scams," SARS warned, adding that the taxman will not request your banking details through the phone, email or websites. It also advises tax payers to obtain verification from the SARS call centre or a branch, for instance. Never give out any details in response to these fake communications," it said.

6. Tax Return Completion: R600 (incl. VAT)

Author: David Beattie
Do you?
•  Want to ensure that you receive the optimum return with the submission of your tax return?
•  Want to avoid all of the hassle with submitting your annual tax return spending hours trying to rectify it?
•  Require expertise and advice from a tax specialist?

The tax filing season officially started on 1 July 2013 for the 2013 tax year (1 March 2012 to 28 February 2013) and for countless taxpayers this season will cause significant stress. Many taxpayers will make the decision to visit SARS and sit in lengthy queues to have their tax returns completed. Others will make valiant attempts to get their return submitted via SARS e-filing and experience the challenges posed by the format of the return. HRTorQue Outsourcing can provide a third option that will relieve you of this stress and ensure that your return is correctly and timeously submitted to SARS.

This tax completion service to salaried taxpayers is R600 (incl. VAT) and the service will include the following functions:
•  Collection and collation of supporting documentation necessary to complete your tax return
•  Completion and filing of the tax return
•  Checking of assessment and notifying you of the result thereof

We do, however, reserve the right to quote separately for the completion of tax returns that require the drafting of the income statements or additional expense schedules required by SARS. Taxpayers who would fall into this category would be those who earn mainly commission or are independent contractors. Should you wish to take advantage of this offer or have any questions regarding this process, please do not hesitate to contact Dave Beattie: [email protected].

7. Annual Earnings Threshold

Author: Melany Bydawell
The Department of Labour has increased the annual earnings threshold from R183 008 per annum to R193 805 per annum, with effect from 1 July 2013.
 
As such, you are not required to remunerate employees earning above the new threshold for overtime pay related to the following provisions:
•  Work outside of ordinary working hours
•  Overtime
•  Compressed working weeks
•  Averaging of working hours
•  Meal intervals
•  Daily and weekly rest periods
•  Pay for work on Sundays
•  Night work
•  Payment for public holidays on which the employee would not ordinarily work

Senior managerial staff are also excluded from these provisions, employees engaged as sales staff who travel to the premises of customers and employees who work less than 24 hours a month for you as an employer. However, employees who earn below the threshold amount (R193 805 per annum), are entitled, by law, to receive the payments and benefits provided for in the Basic Conditions of Employment Act (BCEA).

1. Ordinary Hours of Work
You are in a position to request employees who earn above the earnings threshold to work longer than the standard working hours without remuneration (45 hours a week).

2. Meal Intervals
An employee who earns above the threshold isn't entitled to a fixed lunch hour or tea time and may be required to work during those periods or take a meal interval at a time that's suitable later in the day.

3. Daily and Weekly Rest Period
You are required to allow your employee a daily rest period of at least 12 consecutive hours between ending of at least 36 consecutive hours, which should include a Sunday. This does not apply to employees earning above the threshold.

4. Night Work
The earnings threshold excludes employees who earn above the threshold from being compensated by a night shift allowance or being provided with transport home after their shift.

5. Overtime
You are not required to pay employees who earn above the threshold at the rate of 1.5 times his/her hourly rate as is the case for employees who earn below the threshold.

6. Pay for Work on Sundays
Employees who work on Sundays are entitled to pay at twice their hourly rate, or if the Sunday is a normal shift 1.5 times their hourly rate. If they aren't paid for working on a Sunday, they should be given time off on the same basis and that's two hours for every hour worked. Employees who earn above the threshold can be compensated, but you don't have to compensate them on the same basis.

7. Public Holidays
As with Sunday work, an employee who works on a public holiday must be compensated by being paid twice his hourly rate. Employees who earn above the threshold can be compensated, but you don't have to compensate them on the same basis.

8. Directories of Health, Wellbeing and HIV Service Providers

Author: Melany Bydawell
Employers who do not have an Employee Assistance Programme, where support is offered to staff by way of medical and psycho social assistance, should consider supplying their employees with a reference for access to health and wellbeing service providers. This reference guide can also assist when employees come to the employer seeking assistance and where this is having a negative impact on absenteeism and performance. Managers are neither well-equipped nor experienced to deal with these circumstances.

info4africa produces a series of 9 provincial directories of health, wellbeing and development services providers. These directories are now available from Micromega Publications.

Print Version: R200 per province
CD (PDF file): R100 per province
Set of all 9 provinces (CD version): R500
Set of all 9 provinces (print version): R1800 + Free CD version worth R500
Combo Pack (1 CD of 1 province + 1 printed copy of the same province): R250 (R50 saving)

Additional materials available consists of:
4 Tilly's Tavern Educational DVDs starring Lillian Dube
1 DVD on the Immune System and HIV, the Rapid Test and Counselling
1 DVD on Know Your Status
1 CD with support material
Cost: R900

Master AIDS Game
This novel intervention in HIV awareness has been developed by Mr David Patient and should be used as a fun and interesting way to educate staff on HIV.
Cost: R180
 
To order email [email protected].

9. Protection from Harassment Act

Author: Nicky Hardwick
The Protection from Harassment Act came into effect on the weekend of the 27th April 2013, in line with Human Rights Day. This act specifically deals with all issues relating to harassment, including sexual harassment and the process around gaining protection orders. Although this Act is not specific to employers in general, there are a few elements that apply to all individuals, including employers.

If a person who is being harassed (the applicant) applies or intends to apply for a protection order and it appears that the harasser or their accomplice is unknown to the applicant, the police will need to conduct an investigation to determine who these people are. If a person or employer fails to give the requested information, or gives false information to the police, this person will be guilty of an offence and, on conviction, could be liable for a fine or six months in prison.

As an employer, it is imperative that you and your staff are aware of what your obligations are.

Should you require a Harassment Policy please contact Nicky [email protected].

10. Contact the HRTorQue Team

Head Office (Durban)
 
Phone: 031 564 1155
Fax: 031 564 1228
 
Email: [email protected]
Website: www.hrtorque.co.za
 
Address: 163 Umhlanga Rocks Drive
Durban North, KwaZulu-Natal
 
FB
 
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]
 
Employment Equity & Skills Development
Melany Bydawell: 031 582 7425
[email protected]
Nicky Hardwick: 031 582 7418
[email protected]
 
Tax
Dave Beattie: 031 582 7410
[email protected]

Executive Coach and Team Interventions
Melany Bydawell: 031 582 7425
[email protected]
 
Payroll Third Party Administrator

Kacey Chetty: 031 582 7409
[email protected]
 
Accounts
Cheryl Naidoo: 031 582 7408
[email protected]

Dispatch
Karl van der Merwe: 031 582 7407
[email protected]