News

South African Engineers’ and Founders’ Association

7 November 2019

The Labour Laws Amendment Act 10 of 2018 (“LLA Act”) was signed into law by President Ramaphosa in November 2018. This Act introduces a number of amendments to the Basic Conditions of Employment Act 75 of 1997, most particularly relating to the provision of parental leave to new parents including fathers, same-sex couples, adoptive and commissioning parents. In addition thereto, the LLA Act introduces amendments to the Unemployment Insurance Act 63 of 2001 to allow claims which are to fund these new parental benefits from the Unemployment Insurance Fund.

While these provisions were to come into effect on 01 March 2019, their effective date was delayed as the UIF neglected to inform the relevant government departments, including the Presidency, that they were not ready to accommodate the changes.

However, on 29 October 2019, in Government Gazette No. 42805, the President issued Proclamation No. 56 of 2019. In this proclamation it was provided that Section 8(a)(cA), 11, 15 and 16 of the LLA Act would come into force and effect on 01 November 2019. These sections of the LLA Act are those which entitle an employee who is a parent of a child to at least 10 consecutive days of parental leave in terms of the Basic Conditions of Employment Act and amend the Unemployment Insurance Act to allow for claims to be made for these new parental benefits from the Unemployment Insurance Fund.

In short, an employee who is a father, same-sex partner, adoptive parent or commissioning parent is now entitled to at least 10 consecutive days of parental leave from the day of the birth of the employee’s child. The payment of these parental benefits will be subject to the Unemployment Insurance Act and the employer is entitled to be given notice of the parental leave one month before the child is expected to be born.

11 October 2019

The Minister of Employment and Labour, Mr Thulas Nxesi, has recently expressed grave concerns about the rate of transformation in South African workplaces.  This concern has motivated him to fast track the amendment of the Employment Equity Act, saying that the amendment bill was submitted for parliamentary consideration during the last administration and that the amendments are at an advanced stage. These amendments signal a more aggressive approach to transformation which focus on enforcement measures.

It is essential for employers to familiarise themselves with the amendments to the Employment Equity Act, as failure to comply upon their enactment may result in gruelling labour inspector audits or hefty fines imposed by the Labour Court.

Should you require any assistance in ensuring your compliance with the Employment Equity Act, and the looming amendments, please contact us or book your seat on the EEA workshop that we are running on 30 October 2019.

Workshop Flyer - 30 October 2019

 

6 November 2019

On the 28 October 2019, the Minister of Employment and Labour renewed the extension of the 2011 MEIBC Administration and Expenses agreement following a request submitted by NUMSA in terms of the recently amended Labour Relations Act.

In terms of this renewal, non-parties, including members of the Association are obligated from 28 October 2019, to deduct and pay over to the MEIBC both of the following levies, with the employer making an equal contribution:

  • Admin Levy: R1,72 per week or R7,45 per month in respect of scheduled employees; and
  • Dispute Levy: 62c per week or R2,68 per month in respect of all employees (Please note: Employers who are currently paying the dispute levy at a rate of 74c per week or R3,22 per month, must consequently reduce this amount to 62c per week or R2,68 per month in respect of all employees).

Government Notice

Retrenching?  Make sure you know what you are doing.

Business conditions in the sector continue to be abysmal for many companies and metal and engineering industry is now under more pressure than ever before.  Various economists are of the view that the effects of the global credit crisis have not even yet been fully felt.  This has, unfortunately, put many companies in a position where they now have to contemplate implementing retrenchments.  The retrenchment process is regulated under s189 of the Labour Relations Act and it is imperative that employers who are in this desperate position are au fait with legal requirements. These legal requirements can often prove daunting to employers, particularly those who have never implemented short-time, lay-offs or retrenchments before or who have not had to for some time.

SAEFA, in association with Gordon Angus and Associates is running a comprehensive training workshop dealing with the intricacies and legalities of implementing retrenchments on Wednesday, 9 October 2019.

5 November 2019

The South African economy is in crisis.  Ratings agency Moody’s has recently held the nation’s foreign- and local-currency readings at Baa3, one step above junk. The nation is already rated below investment grade at S&P Global Ratings and Fitch Ratings, both of which shifted its status to junk in 2017.  If Moody’s cuts South Africa’s rating, the country would lose its place in the FTSE World Government Bond Index. Exiting it could spark an investor sell-off and outflows of as much as $15 billion.  Manufacturing, and the metal and engineering industry in particular, are not excluded from the crisis.  Unemployment in South Africa is arguably the single biggest threat facing the country.  Read the frightening truth of what’s going on in the metal industry in an opinion piece published in the latest edition of Metalworking News:

http://metalworkingnews.info/job-losses-in-the-metal-and-engineering-industry-to-continue/

18 September 2019

Below please find a draft Government notice relating to the above which has been published for comment. You will note that the number of new proposed classes has been significantly reduced with new assessment rates for each. Most SAEFA companies will fall under Paragraph 3.12 of the schedule: Restructured Cluster L. 

Companies wishing to comment are requested to email these to me by no later than Monday 23 September 2019.

Draft Regulation on Employers Assesment Model

4 November 2019

Employment Equity Act, 1998 Regulations: Repeal and replacement of Form EEA 4

I wish to alert you to the Regulation Gazette No 10975 published on 8 August 2019, please see document below:

Regulation Gazette No 10975

The Regulation Gazette No 10975 has repealed Form EEA 4 which was published in Gazette 37873 on 1 August 2014 and replaced it. The replacement is effective from 8 August 2019.

Please note that the EEA 4 form is substantially different from the previous form.

At the recent Effective Implementation of the Employment Equity Act workshop, held on 30 October 2019, significant concern was expressed by delegates over the new form.  In light of this, SAEFA is holding another workshop to allow for members who may have missed the last date to attend.   

Date:     20 November 2019
Venue:  Birchwood Hotel and OR Tambo Conference Centre, Viewpoint Road, Boksburg
Cost:     R2 900 per delegate

EEA Workshop Brochure

27 August 2019

Business conditions in the sector continue to be abysmal for many companies.  Various economists are of the view that the effects of the global credit crisis have not even yet been fully felt.  This has, unfortunately, put many companies in a position where they now have to contemplate implementing retrenchments.  The retrenchment process is regulated under s189 of the Labour Relations Act and it is imperative that employers who are in this desperate position are au fait with legal requirements.

SAEFA is running a comprehensive training workshop dealing with the intricacies and legalities of implementing retrenchments on 18 September 2019.  For more information or to make a booking, please see the attached.

Retrenchment Workshop Flyer