South African employers are expected to increase pay by an average of  6.1%  in 2024, according to a recent survey (as per BusinessTech). This is a slight decrease from the actual average rise in pay budgets made in 2023, which was  6.6% . The study found that companies surveyed are considering raising their compensation budgets in 2024 for two primary reasons: about  70%  of the organizations attribute inflationary pressure as the reason, while nearly  44%  responded that the increases are due to a competitive labour market, with companies aiming to attract and retain quality employees. The forecast rise for 2024 is higher than the global average of a  5.0%  pay raise predicted in 2024. The study also found that  59%  of employers are looking to hire engineers,  56%  are seeking IT professionals, and  48%  are interested in recruiting more salespeople. Inflation in South Africa has been high, with the current inflation rate at  5.5%  as of November 2023. The expected National Minimum Wage increase to take effect on 1 March 2024 will be higher than the anticipated general increase of 6.1%. It is expected that the increase will be  CPI (which is currently running at 5.5%) plus 3% . This is likely because  8 of the 12 Commissioners  on the National Minimum Wage Commission voted in favour of this and there is increasing social pressure to narrow the vertical income gap across South Africa and the world. The three Commissioners representing business voted for a CPI-only increase.

As we step into 2024, organisations are facing a pivotal moment, where the ability to navigate a rapidly changing landscape will determine their success in the months ahead. Numerous factors, many of which are within the organisation’s control, will play a critical role in shaping the business environment. Here are the key aspects that organisations must carefully navigate in the coming year: 1. Adaptability to Change: Organisations must realise that it is not what happens to them that matters most, but rather how they interpret and respond to these situations. Success will depend largely on their ability to adapt to change and efficiently redirect their resources. Flexibility and agility will be essential traits as organisations navigate evolving market dynamics and unforeseen challenges. 2. Empathetic Leadership: Smart leaders who genuinely empathise with their staff and evoke a deep sense of trust and purpose will be crucial in underpinning resilience, fostering innovation, and reducing resistance to change. Building a culture of empathy and trust within the organisation will be vital for driving employee engagement and motivation. 3. Compliance with Labour Laws: Compliance will be a key feature of organisations in 2024, as they navigate not only existing South African labour laws but also the approximately 10 new or amended laws that are in the advanced stages of the Parliamentary process. Ensuring adherence to these laws will be essential to avoid legal complications and maintain a harmonious work environment. 4. HR and Labour Relations Policies: Organisations will need to undertake a comprehensive review and refresh of their human resources and labour relations policies to align with both organisational and statutory changes. This proactive approach will help ensure that the organisation remains compliant and supportive of its workforce. 5. Skills Development: With the increasing impact of AI, organisations will need to conduct a thorough skills set analysis and identify training needs, particularly in the areas of AI and emotional intelligence (EQ). Generative AI is set to impact 100% of jobs, making digital and emotional intelligence key focal points for capacity-building initiatives. 6. Diversity, Equality, and Inclusion: Organisations must prioritise the acquisition and enforcement of behavioural skill sets related to diversity, equality, inclusion, and belonging. Failing to do so could result in devastating legal and business consequences. Creating a culture that values diversity and fosters inclusivity will be crucial for organisational success in 2024. In conclusion, 2024 presents organisations with a host of challenges that require proactive and strategic responses. By focusing on adaptability, empathetic leadership, compliance, policy review, skills development, and diversity and inclusion, organisations can position themselves for success in the year ahead. Partnering with thought leaders in these areas and collaboration are essential.

The National Health Insurance (NHI) Bill, which aims to provide universal access to quality health care for all South Africans, has been met with mixed reactions from different stakeholders in the health sector. One of the key issues that has emerged is the impact of the NHI on the Broad-Based Black Economic Empowerment (B-BBEE) of hospitals, clinics, and other healthcare providers. According to the NHI Bill, the NHI fund will be the single purchaser and financier of health services for the entire population and will contract with accredited public and private health facilities and practitioners. This means that the government will effectively become the main client for healthcare providers, and will require them to comply with certain criteria and standards, including B-BBEE. Currently, the health sector falls under the general charter codes of the revised B-BBEE Codes, which have specific requirements for ownership, management, skills development, enterprise and supplier development, and socio-economic development. However, the NHI Bill also gives the Minister of Health the power to prescribe additional criteria for contracting with healthcare providers, which may include B-BBEE-related targets or goals. This implies that healthcare providers will have to adapt their B-BBEE strategies and policies to align with the NHI objectives and regulations or risk losing out on business opportunities and market share. Some of the possible implications and challenges for healthcare providers are: Ownership: Healthcare providers may have to consider selling shares to black individuals or entities, or creating indirect ownership structures, such as broad-based ownership schemes or employee share ownership programmes, to increase their B-BBEE ownership levels and scores. This may entail finding suitable and strategic partners or beneficiaries, as well as ensuring compliance with the B-BBEE Codes and the NHI Bill. Management: Healthcare providers may have to ensure that their management and board structures reflect the diversity and representation of the population and that they have adequate skills and competencies to deliver quality health services. This may require investing in leadership development, talent management, and succession planning, as well as addressing any barriers or biases that may hinder the advancement of black managers and directors. Skills development: Healthcare providers may have to invest more in the training and development of their staff, especially black employees, to enhance their skills and qualifications, and to meet the accreditation and quality standards of the NHI fund. This may involve implementing skills programmes, learnerships, internships, bursaries, and mentorship schemes, as well as taking advantage of tax rebates and incentives applicable to some of these initiatives. Enterprise and supplier development: Healthcare providers may have to support the development and growth of black-owned and black-empowered enterprises and suppliers in the health sector, by procuring goods and services from them, providing them with financial or non-financial assistance, or creating joint ventures or partnerships with them. This may entail identifying and nurturing potential suppliers, monitoring and evaluating their performance and impact, and ensuring that they adhere to the ethical and professional standards of the health sector. Socio-economic development: Healthcare providers may have to contribute more to the social and economic well-being of the communities in which they operate, by supporting initiatives that address health-related issues, such as HIV/AIDS, tuberculosis, maternal and child health, mental health, and environmental health. This may involve engaging with various stakeholders, such as government, civil society, and non-governmental organisations, to identify and implement relevant and sustainable projects and programmes. The NHI Bill presents both opportunities and challenges for healthcare providers in terms of B-BBEE. While some may view it as a threat to their profitability and autonomy, others may see it as a chance to improve their competitiveness and social responsibility. Ultimately, the success of the NHI and B-BBEE will depend on the collaboration and cooperation of all the parties involved and the shared vision of achieving a healthier and more equitable society for all. GBS offers a holistic business solution, integrated with your Human Capital Strategy to ensure the ultimate Return on Investment (ROI) of your human assets. We can assist in the initial assessment of your B-BBEE status and craft innovative strategies to optimise your industry positioning. For more information, please contact our B-BBEE experts at Richard – richard@globalbusiness.co.za or Cindie – Cindie@globalbusiness.co.za

In South Africa, the Labour Relations Act (LRA) requires employers to consult with affected parties when contemplating restructuring as a result of operational requirements. Section 189(1) of the LRA is clear in this. It is evident that many businesses are facing economic pressures and technological changes, which require amendments to terms and conditions of employment. In such cases, it is important for companies to start consultations as soon as possible for legal reasons and to collaborate with employees to identify possible alternatives to retrenchment. By using models such as design-thinking, collaborating with various stakeholders, and opening engagement, the prospects of identifying viable options and reducing the impact of job losses are improved. Recently, President Ramaphosa called on businesses to delay possible retrenchments as South Africa tries to remediate the transport, crime, and energy crisis. In the event that an employer fails to comply with the requirements of section 198 of the LRA as a result of a lack of consultation, the Labour Court may find the employer guilty of unfair labour practice. For example, in the case of IMATU obo K C JOUBERT and MODIMOLLE LOCAL MUNICIPALITY, the Labour Court found that the employer failed to consult with the affected parties as required by section 189 of the LRA. It is important for employers to comply with the requirements of the LRA to ensure that the retrenchment process is fair and that the rights of employees are protected. Failure to do so may result in legal action being taken against the employer.

Have you ever wondered what the legal requirements are for issuing and accepting medical certificates? Or how to deal with employees who claim to have a calling from their ancestors to become traditional healers? If so, this article will provide you with some useful insights and guidance. According to the Health Professions Council of South Africa (HPCSA), medical certificates are legal documents that must adhere to certain guidelines. Medical doctors can be found guilty of unprofessional conduct if they fail to comply with these guidelines. For example, a medical certificate must state the name, address, and qualification of the practitioner, the name and employment number of the patient, the date and time of the examination, the diagnosis based on the professional opinion of the practitioner, the period of recommended sick leave, and the date of issue of the certificate. The medical certificate must also be an original document and not a copy. The Basic Conditions of Employment Act (BCEA) stipulates that an employee is obliged to furnish a legitimate medical certificate if they are absent from work for more than two consecutive days or on more than two occasions during an eight-week period. The medical certificate must state that the employee was unable to perform their normal duties because of illness or injury. The BCEA also recognises that a medical certificate can be issued and signed by a person who is certified to diagnose and treat patients and who is registered with a professional council established by an act of Parliament. This includes a professional nurse who holds an additional qualification in clinical nursing science, health assessment, treatment, and care and is registered as such by the South African Nursing Council (SANC). However, the SANC recommends that such a nurse should only issue a medical certificate for a period not exceeding two days and should refer the patient to a medical practitioner or to the next level of care if their condition does not improve. Employers have a right to investigate the validity of a medical certificate to confirm that the patient did indeed visit the medical practice on the date stated on the certificate, as well as the actual dates booked off. Employers also have a legitimate expectation that their employees will act with honesty and integrity. Fraudulent or questionable medical certificates are not acceptable and can lead to dismissal. However, dismissals for misconduct must be substantively and procedurally fair. In some cases, employees may request leave or remain off work for reasons related to their cultural or religious beliefs, such as training as a traditional healer. In such cases, employers should consider the employee’s right to freedom of religion and try to accommodate their request as far as possible. The Supreme Court of Appeal (SCA) has ruled that the dismissal of an employee who failed to obey an instruction to resume work because she had a calling from her ancestors to train as a traditional healer was unfair. The SCA also held that the traditional healer’s certificate was to be equated with a medical certificate for purposes of sick leave. In conclusion, medical certificates, clinics, and nurses are important aspects of the employment relationship that require careful attention. Employers and employees should familiarise themselves with the relevant laws and ethical rules that govern these matters and seek legal advice if in doubt.

In South Africa, it is a criminal offense to falsely or fraudulently claim to hold a qualification or part-qualification registered on the National Qualifications Framework (NQF) or awarded by an education institution, skills development provider, or quality council. The National Qualifications Framework Amendment Act 12 of 2019 has implications not only for prospective employees and/or job seekers who misrepresent their qualifications but also for employers seeking to appoint such prospective employees or job seekers. The act provides that prospective employees and/or job seekers who are found to have misrepresented their qualifications may face possible jail time, a fine, or both. The amendments also introduce an obligation on employers to validate any qualification presented to them by ensuring that the qualification is registered on the national learners’ records database before appointing the prospective employee and/or job seeker. In circumstances where the qualification is not registered on the national learners’ records database, employers are required to verify the qualification with the South African Qualifications Authority. The case of Thabi Leoka, who was appointed as a non-executive director at Netcare in 2021 despite a verification report commissioned by the company indicating that her highest qualification was a Master’s degree, highlights the importance of verifying the accuracy of the information provided by employees. Despite the verification report being at odds with Leoka’s CV, Netcare went on to tell shareholders and the public that she had a PhD. This is a clear example of how misrepresenting one’s qualifications can have serious consequences for both the individual and the company. It is important for companies to conduct thorough background checks and verify the accuracy of the information provided by their employees, especially for high-ranking positions where the individual’s qualifications and experience are critical to the success of the company. Companies can also consider implementing additional measures, such as validating any qualification presented to them by ensuring that the qualification is registered on the national learners’ records database before appointing the prospective employee and/or job seeker. By taking these steps, companies can help prevent qualification fraud and ensure that they are hiring qualified individuals who can contribute to the success of the company.

As we step into 2024, the landscape of human resources (HR) continues to evolve, driven by technological advancements, shifting workforce dynamics, and changing employee expectations. In South Africa, where the HR function plays a crucial role in navigating the complexities of a diverse and rapidly transforming labour market, it is essential for HR professionals and organizations to stay abreast of the latest trends that are shaping the industry. Drawing on insights from research firms such as Gartner and the expertise of thought leaders, here are the top 5 human resources trends for 2024 with a specific focus on South Africa: Embracing Digital HR Transformation The acceleration of digital transformation has been a defining characteristic of recent years, and this trend is set to continue in 2024. South African organizations are increasingly investing in advanced HR technologies, such as cloud-based HR systems, people analytics, and artificial intelligence (AI) tools to streamline HR processes, enhance decision-making, and improve the employee experience. As remote and hybrid work arrangements become more prevalent, digital HR solutions will play a pivotal role in enabling seamless collaboration and communication across dispersed teams. Prioritising Employee Well-being and Mental Health In the wake of the COVID-19 pandemic, there has been a heightened awareness of the importance of employee well-being and mental health. South African organizations are expected to prioritize initiatives that support the holistic health of their employees, including the implementation of mental health programs, flexible work policies, and resources for managing stress and burnout. HR leaders will need to foster a culture of empathy and understanding while providing the necessary support structures to promote employee well-being. Diversity, Equity, and Inclusion (DEI) Initiatives The imperative for fostering diverse, equitable, and inclusive workplaces continues to gain prominence in South Africa. HR professionals are anticipated to focus on developing and implementing DEI strategies that address systemic inequalities, promote representation across all levels of the organization, and create an environment where all employees feel valued and respected. Thought leaders emphasize the importance of embedding DEI principles into all aspects of HR, from talent acquisition and development to performance management and succession planning. Skills Development and Reskilling The rapid pace of technological change and the emergence of new job roles are reshaping the skills landscape in South Africa. HR leaders are recognizing the need to invest in continuous learning and development programs to upskill and reskill their workforce. Gartner’s research highlights the critical role of HR in identifying future skills requirements, creating personalized learning pathways, and fostering a culture of lifelong learning to ensure that employees remain adaptable and competitive in the evolving job market. Agile Performance Management Traditional performance management practices are giving way to agile and continuous feedback mechanisms. In 2024, South African organizations are expected to shift towards more frequent performance conversations, goal setting, and feedback loops that enable real-time course correction and development. Thought leaders emphasize the importance of aligning performance management with the organization’s strategic priorities while empowering employees to take ownership of their growth and development. In conclusion, the HR landscape in South Africa is undergoing a profound transformation, driven by a confluence of global trends and local imperatives. By embracing digital HR transformation, prioritizing employee well-being, advancing DEI initiatives, investing in skills development, and adopting agile performance management practices, HR professionals and organizations can position themselves to navigate the challenges and opportunities that lie ahead in 2024.

The Hate Speech Bill, currently awaiting Presidential signature and promulgation, has sparked widespread debate and concern, particularly in the context of the workplace. This proposed legislation aims to criminalize any form of hate speech and imposes penalties ranging from fines to imprisonment for those found guilty of violating its provisions. The potential impact of this bill on employees cannot be overstated, as it could lead to serious disciplinary action, including dismissal, and significantly affect the dynamics of the modern workplace. Defining Hate Speech Hate speech is commonly defined as any form of communication that disparages or intimidates individuals or groups based on characteristics such as race, ethnicity, religion, sexual orientation, disability, or gender. It often involves spreading discriminatory or derogatory messages, inciting violence, or promoting hostility towards specific communities. Hate speech can manifest in various forms, including spoken or written words, images, gestures, or online content, and its impact can be deeply harmful, contributing to a hostile and discriminatory environment. The Workplace Implications In the context of the workplace, the implications of the Hate Speech Bill are far-reaching. Employees are representatives of their organizations, and any violation of the proposed legislation could not only result in legal consequences for the individual but also damage the reputation and integrity of the employer. Employers could be held vicariously liable for the actions of their employees, leading to potential legal and financial ramifications. Furthermore, in an environment where diversity, equity, and inclusion are increasingly being recognized as essential components of a healthy workplace culture, the presence of hate speech can have severe repercussions. It can undermine employee morale, create divisions, and hinder collaboration, ultimately impacting productivity and organizational success. Employer Responsibility Given the potential impact of the Hate Speech Bill on the workplace, employers have a responsibility to address this issue proactively. Organizations should consider implementing comprehensive training programs to educate employees on the implications of the proposed legislation and to promote awareness of what constitutes hate speech. By fostering an environment of understanding and respect, employers can mitigate the risk of hate speech incidents and empower their workforce to uphold the principles of tolerance and inclusivity. Employees should be encouraged to cultivate self-awareness, exercise self-regulation, and lead by example in their interactions with colleagues and clients. Through open dialogue, clear policies, and robust enforcement mechanisms, employers can create a workplace culture that rejects hate speech and upholds the dignity and rights of all individuals.

As we approach 2024, businesses are facing a confluence of economic challenges that are prompting a fundamental re-evaluation of their operational and workforce strategies. A groundswell is building, driven by factors such as stagnant economic growth, high labour costs, pervasive crime, infrastructural failures, and other obstacles to sustained profitability. In this climate, employers must carefully consider how to balance employment costs with return on investment (ROI) while strategically positioning their organizations for sustainable success. One of the key considerations for businesses in the year ahead is the imperative to optimize their human capital management. This involves focusing on remuneration and appropriately rewarding core talent and high performers. In a landscape where cost efficiency is paramount, organizations must reevaluate their remuneration structures to ensure that they are competitive, performance-driven, and aligned with the company’s strategic objectives. Furthermore, revisiting workforce models is essential for businesses seeking to enhance operational efficiency and cost-effectiveness. This may involve exploring options such as outsourcing, sub-contracting, and the use of Temporary Employment Services (TES) to strategically augment and flexibly manage their workforce. Embracing automation and mechanization can also help streamline operations, reduce labour-intensive tasks, and enhance productivity, thereby contributing to a more efficient allocation of resources. In tandem with these measures, businesses are increasingly reevaluating their employee benefit programs to identify and eliminate those that carry excessive cost and administrative burdens. By refining benefit offerings, companies can achieve a more balanced and sustainable cost structure while still providing valuable support to their employees. Total cost-to-company (TCTC) packages, performance-based incentives, and continuous development opportunities are emerging as pivotal components of an effective talent management approach. TCTC packages provide a comprehensive view of the true cost of employment, allowing for a more holistic assessment of resource allocation and remuneration strategies. Performance-based incentives align employee rewards with business objectives, fostering a culture of accountability and achievement. Simultaneously, a commitment to continuous development within a non-toxic workplace environment is crucial for nurturing a skilled and motivated workforce that is equipped to drive the organization forward. Amidst these strategic considerations, it is essential for employers to approach these changes with a keen awareness of the human impact. The pursuit of cost efficiencies and operational optimization must be balanced with a commitment to fair and equitable treatment of employees. Open communication, transparency, and a collaborative approach to change management can help mitigate potential disruptions and ensure that the workforce remains engaged and motivated during periods of transition. In conclusion, the challenges and opportunities facing businesses in 2024 call for a thoughtful and strategic approach to managing employment costs and driving ROI. By focusing on optimizing human capital, refining workforce models, and recalibrating remuneration and benefit structures, businesses can position themselves for sustainable growth and resilience in the face of economic headwinds. It is through these proactive measures that organizations can navigate the complexities of the modern business landscape while fostering a culture of innovation, efficiency, and employee well-being.

Moonlighting, the practice of holding a second job in addition to a primary job, has become a topic of contention within the realm of labour law. A recent case at the University of the Witwatersrand brought to light the complexities and legal implications of moonlighting, shedding light on the delicate balance between an employee’s right to pursue additional work and an employer’s need to protect its interests. In this case, a permanent employee of the University of the Witwatersrand engaged in parallel work activities without the university’s approval, leading to a dispute over the breach of contractual obligations and fiduciary duties. The Labour Court’s ruling made it clear that such actions constituted a violation of the employee’s obligations and upheld the principle that an employee is under the control of the employer, necessitating dedication of time and expertise to the primary employment relationship. Central to the court’s decision was the employee’s failure to disclose her moonlighting activities, as explicitly required by her employment contract. The contract vested the university with absolute discretion to approve or disapprove such disclosures, underscoring the employer’s prerogative to regulate outside work. Moreover, the court emphasized the potential adverse impact of moonlighting on various aspects of the employment relationship, including health and safety, as well as productivity due to fatigue. The ruling highlights the importance of clear and unambiguous employment policies regarding moonlighting. Employers must establish explicit guidelines that leave no room for misinterpretation, ensuring that employees understand their obligations and the potential consequences of engaging in outside work without proper disclosure and approval. While the case underscores the employer’s legitimate interest in regulating moonlighting, it also raises questions about the extent to which such regulations may infringe upon an employee’s autonomy and right to pursue additional sources of income. In today’s dynamic and evolving work landscape, many employees seek flexibility and opportunities for supplementary earnings, particularly in light of economic challenges and changing job market dynamics. Balancing these competing interests requires a nuanced approach that acknowledges the rights and responsibilities of both employers and employees. Clear policies on moonlighting can provide a framework for navigating these complexities, offering guidance on the permissible scope of outside work while safeguarding the legitimate interests of the employer. Ultimately, the case serves as a reminder of the importance of transparency, communication, and mutual understanding in employment relationships. By fostering open dialogue and establishing clear expectations regarding moonlighting, employers can mitigate potential conflicts and uphold the integrity of the employment contract, while also respecting the autonomy and well-being of their employees.