South African companies contend with multiple compliance requirements concerning labour, with bargaining councils serving as a prime example. Compliance with these councils is paramount, and neglecting compliance can leave businesses vulnerable to legal risks and obstacles. Upholding compliance standards can also strengthen relationships with employees, unions, and regulatory bodies, fostering a positive work atmosphere.
Compliance also aids in businesses operating ethically and sustainably, contributing to long-term prosperity and expansion. By shifting the perspective from viewing compliance negatively to seeing it as a strategic advantage, companies can realise numerous benefits. Working with a reputable Temporary Employment Services (TES) partner can help to reduce the compliance burden and amplify these advantages.
A complex compliance environment
Compliance with various labour laws and regulations is essential but can be a challenging task in South Africa. The country has numerous bodies of legislation, including the National Minimum Wage Act, Basic Conditions of Employment Act, Labour Relations Act, Bargaining Council & Main Agreements, Employment Equity Act and tax compliance such as the Unemployment Insurance Fund (UIF), Pay As You Earn (PAYE), Workman’s Compensation Act (WCA), Skills Development Levies and the Occupational Health and Safety Act (OHSA).
This complicated regulatory framework is also constantly evolving, so keeping abreast of these changes can be an onerous task. In addition, economic difficulties, including high unemployment rates and economic inequality, can strain businesses, making it difficult for them to invest effectively in compliance. This is exacerbated by a lack of resources and/or expertise needed to effectively manage compliance.
The role of the bargaining council
In South Africa, bargaining councils are an important element of compliance and managing labour relations, with different industries having different bargaining councils. An employer is legally obligated to register with that specific bargaining council, if the core function of the employer is prescribed in the scope of application of any bargaining council. The employer must also comply with the terms and conditions as set out in the collective agreement of the bargaining council.
Bargaining councils serve several functions, including making and enforcing collective agreements, preventing and resolving labour disputes, and establishing and managing a dispute resolution fund. They also promote and establish training and education schemes, set up and manage schemes or funds to benefit their parties or members, and make and submit proposals on policies and laws that affect a specific sector or area.
Neglect compliance at your peril
There is a well-known saying that “compliance is much cheaper than non-compliance” and all legislation in South Africa carries some form of penalty for not complying. This includes hefty fines to the tune of millions of Rands, and possible jail time. Serious instances of non-compliance can even result in businesses having to shut down. However, compliance also has benefits to business and focusing on shifting the perspective from the negatives like fines and penalties, to the positives of these benefits, can be hugely beneficial.
Compliance not only helps to mitigate legal, financial, and reputational risks, it can also increase operational efficiency, by enforcing consistent processes, reducing risks, and improving employee productivity. It can also enhance employee satisfaction and retention by creating a safe, fair, and transparent work environment, providing opportunities for growth, and ensuring job security. Compliance also drives business growth and competitive advantage by fostering innovation, strengthening stakeholder relationships, and building a sustainable, ethical business model that attracts customers, investors, and top talent.
Simplifying labour compliance with a TES partner
Engaging with a TES partner help businesses simplify challenges associated with legislation and compliance in South Africa. Reputable TES providers can play a crucial role in helping organisations maintain compliance with various regulations and standards. For example, TES providers can supply additional employees and expertise at short notice, as they have pools of resources who are all vetted and fit for purpose.
TES providers are experts in labour laws and related matters, ensuring they manage fair and equitable recruitment processes, employment contracts, standards, and payroll services, while ensuring fair labour practices. In addition, by streamlining processes and making them more transparent, TES providers can help ensure accurate and timely reporting of compliance-related matters. This includes maintaining records and documentation required for audits, inspections and labour disputes. By collaborating closely with their clients, TES providers can add significant value and help ensure that compliance is maintained across various aspects of the organisation.