PRESENTATION ON

LABOUR LEGISLATION 11-12

AUGUST 2009
 Labour Legislation

1. Legislation
Basic Conditions of Employment Act, 75 of 1997

Purpose: To advance economic development and social justice by

fulfilling the primary objects of this Act, which are:
a. To give effect to and regulate the right to fair labour
practices conferred by section 23(1) of the Constitution by
i)    i) establishing and enforcing basic conditions of
employment and
ii)  regulating the variation of basic conditions of
employment;
b. To give effect to obligations incurred as a member state of
the International Labour Organisation.
 Labour Legislation

2. Legislation (continued)

Employment Equity Act, 55 of 1998

Purpose: To achieve equity in the workplace, by
a) promoting equal opportunity and fair treatment in
employment through the elimination of unfair
discrimination; and
b) implementing affirmative action measures to redress the
disadvantages in employment experienced by designated
groups, to ensure their equitable representation in all
occupational categories and levels in the workforce.
 Labour Legislation

3. Legislation (continued)
Labour Relations Act, 1995
Purpose: To advance economic development, social
justice, labour peace and the democratisation of
the workplace by fulfilling the primary objects of
this Act, which are:
a) To give effect and regulate the fundamental rights
conferred by section 27 of the Constitution,
b) To give effect to obligations incurred by the
Republic as a member state of the International
Labour Organisation
 Labour Legislation

4. Legislation (continued)
Labour Relations Act, 1995 (continued)
c) To provide a framework within which employees
and their trade unions, employers and employers’
organisations can collectively bargain to
determine matters of mutual interest and
formulate industrial policy,
d) To promote:
• Orderly collective bargaining (also at sectoral level),
• Employee participation in decision-making in the workplace
and
• Effective resolution of labour disputes
 Labour Legislation
Labour Market Review

The Department will review several pieces of legislation to

align and ensure that they respond to the challenges posed
by the labour market.

The Labour Market Review will look at the following

legislations:
• Basic Conditions Employment Act, and Labour Relations Act,
• Employment Equity Act,
• Compensation for Occupational Injuries and Diseases Act,
• Unemployment Insurance Act,
• Skills Development Act.

• This labour market review forms part of the Minister’s five

year plan.

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 Labour Legislation

LRA & BCEA

South Africa has seen a considerable

growth of temporary employment services
or labour brokers.

Labour brokers undermine provisions of the law

dealing with:
• Minimum wages and collective agreements,
• Health and Safety provisions,
• Right of workers to freedom of association; and
• Job security.

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 Labour Legislation

To address these challenges the legislative

amendments will consider:

• Addressing the problem of labour broking and to

prohibit abusive practices(S23 of the Constitution
provides that “Every person shall have the right to fair
labour practices”;
• Shifting the responsibility back to the main employer.
• Possible amendments will include definitions of
‘Employer” and ‘workplace”;discrimination and
organisational rights.

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 Labour Legislation

Employment Equity Act

The amendments to this Act is aimed at

strengthening the enforcement and compliance
provisions.
The challenges are:
• Non-compliance by employers is too high; and
• Even if an employer has not complied with the
requirements of the Act for many years, Labour
inspectors are forced to secure a written undertaking,
followed by a Compliance Order before referring it to
the Labour Court. The same applies to the DG
Review when reviewing substantive compliance.

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 Labour Legislation

Compensation for Occupational

Injuries and Diseases Act
Legislative amendments will deal with:
• Revenue collection model: Amendments will
address corruption; audit challenges; and discourage
under-reporting by employers,
• Early return to work: To focus the approach to the
employee and not the medical practitioner,
• Integrated approach to rehabilitation to work: This
will ensure that all stakeholders responsible for the
treatment of the patient work together including skills
development.
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Unemployment Insurance Act

Legislative amendments will address the following:
• Inclusion of Public Service Workers and their
Employer,
• Increase credit days from 238 to 360,
• Delete section 14a to include recipients of benefits
from COIDA and other Unemployment schemes,
• Inclusion of Appeals Bodies in determining just/good
cause for late applications,
• Increase Income Replacement Rate from 38-60% to
45-65%,
• Benefit Schedule should be taken out of the Act into
regulations,
• Monthly Declarations by employers.
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 Labour Legislation

Skills Development Act

Legislative amendments will deal with:
• Employment Services legislation,
• Establishment of the QCTO,
• Manpower Training Act Section 28 and
13 Provisions,
• Productivity SA establishment.

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Thank you.