A Practical Guide to Labour Law

A Practical Guide to Labour Law Sixth Edition Authors JV du Plessis BA LLB LLD (Unisa) Advocate of the High Court Professor of Mercantile Law, University of the Free State MA Fouche Bluris LLB NHD PSE Advocate of the High Court Professor of Labour Law, Nelson Mandela Metropolitan University Senior Commissioner of the CCMA and bargaining council arbitrator Editor MA Fouche LexisN'exis Durban

CONTENTS Preface v Part 1: Common Law 1 Introduction 3 1.1 Background 3 1.2 Sources of labour law rules 4 1.3 Lexical order of sources and rules 4 Questions 7 2 Common law contract of employment 9 2.1 Introduction 9 2.2 Nature of locatio conductio operarum (contract of employment) 9 2.3 Conclusion of the contract 13 2.4 Essentialia of the employment contract 13 2.4.1 Specified work 13 2.4.2 Remuneration 14 2.5 Conditions of employment 14 2.5.1 Vacation leave 14 2.5.2 Sick leave 14 2.6 Duties of employer 15 2.6.1 To accept the employee into his service 15 2.6.2 To provide the employee with work 15 2.6.3 To pay the remuneration agreed upon 15 2.6.4 To pay a quantum meruit. 16 2.6.5 To provide safe working conditions 16 2.6.6 To comply with statutory duties 17 2.7 The employee's remedies 17 2.7.1 Cancellation 17 2.7.2 Specific performance 17 2.7.3 Damages 18 2.7.4 Refusal to work 18 2.7.5 Statutory remedies 18 2.8 The employee's duties 18 2.8.1 To make his services available 18 2.8.2 To warrant his competence 19 2.8.3 To obey the employer 19 2.8.4 To be subordinate to the employer 19 2.8.5 Maintaining bona fides 20 2.8.6 To exercise reasonable care when using the employer's property 20 2.8.7 To refrain from misconduct 20 2.9 The employer's remedies 21 2.9.1 Summary dismissal 21 2.9.2 Specific performance 22 2.9.3 Damages 22 2.9.4 Statutory remedies 22 2.10 Termination of the contract of employment 22 2.10.1 By notice 23 2.10.2 Bv the effluxion of time 23

A Practical Guide to Labour Law 2.10.3 By agreement 23 2.10.4 By the death of the parties 23 2.10.5 By the insolvency of the parties 23 2.10.6 By the illness of the employee 2.10.7 By impossibility of performance 24 24 2.10.8 By cancellation (summary termination) 24 2.10.9 Redundancy of post 24 2.10.10 Completing a specific task 24 2.11 The employer's delictual liability 2.11.1 Employer/employee relationship 25 25 2.11.2 The delict must have been committed by the employee in the course of the performance of his duties 25 2.11.3 The employer's liability for the delicts of an independent contractor 27 2.12 Restraint of trade 27 2.13 The employer and third parties Questions 28 28 Part 2: Social Legislation 3 Basic Conditions of Employment Act 75 of 1997 35 3.1 Introduction 35 3.2 Aims of the Act 3.3 Application 35 36 3.4 Definitions 37 3.5 3.6 Ordinary working hours Overtime 38 39 3.7 Compressed working week 39 3.8 Averaging of hours of work 40 3.9 Meal intervals and rest periods 40 3.10 Work on Sundays and public holidays 40 3.11 Night work 41 3.12 Leave 41 3.12.1 Annual leave 3.12.2 Sick leave 41 42 3.12.3 Maternity leave 42 3.12.4 Family responsibility leave 43 3.13 Particulars of employment and remuneration 43 3.14 Termination of employment 45 3.15 Prohibition of employment of children and forced labour 46 3.16 Variation of conditions of employment 3.16.1 Variation by agreement 47 47 3.16.2 Variation by Minister 47 3.16.3 Sectoral determinations 48 3.17 Employment Conditions Committee 49 3.18 Monitoring and enforcement of legal provisions 50 3.19 Legal proceedings 51 3.20 General '!"...!^^^'"^!!""!"""""^^"^^ 52 Questions 52 Appendices 57 4 Employment Equity Act 55 of 1998 77 4.1 Introduction 77 4.2 Constitutional equality 77 4.2.1 The equality clause 77 4.2.2 The affirmative action clause 78

Contents jx 4.2.3 The anti-discrimination clause 78 4.2.4 Proof of discrimination 79 4.3 The objectives of the Employment Equity Act 79 4.4 Application of the Employment Equity Act 80 4.5 Chapter II - Prohibition of unfair discrimination 81 4.5.1 Meaning of "unfair discrimination" 81 4.5.2 Provisions of Chapter II 81 4.5.3 Dispute resolution 82 4.6 Chapter III - Affirmative action 82 4.6.1 Affirmative action measures 82 4.6.2 Duties of designated employers 83 4.7 Commission for Employment Equity 85 4.8 Monitoring, enforcement and legal proceedings 85 4.8.1 Labour inspectors 85 4.8.2 The Director-General 86 4.8.3 The Labour Court 86 4.9 Protection of employee rights 87 4.10 General provisions 87 Questions 88 Appendices 93 5 Unemployment Insurance Act 63 of 2001 109 5.1 Introduction 109 5.2 Definitions 109 5.3 Application of the Unemployment Insurance Act 110 5.4 Framework of the Unemployment Insurance Act 110 5.4.1 Unemployment Insurance Fund 110 5.4.2 Unemployment Insurance Board 111 5.4.3 LTnemployment Insurance Commissioner Ill 5.4.4 Claims officers 111 5.4.5 Director-General Ill 5.5 Benefits Ill 5.5.1 Right to benefits Ill 5.5.2 Calculation of benefits 112 5.5.3 Unemployment benefits 113 5.5.4 Illness benefits 114 5.5.5 Maternity benefits 115 5.5.6 Adoption benefits 115 5.5.7 Dependant's benefits 116 5.5.8 General provisions relating to benefits 117 5.5.9 Dispute resolution 117 5.6 Enforcement 11" 5.7 Duties of employer 1 18 5.8 Miscellaneous 118 5.9 Unemployment Insurance Contributions Act 4 of 2002 119 5.9.1 Contributions 119 5.9.2 Interest, penalties and offences 121 5.9.3 Application of the Income Tax Act 121 Questions 122 Appendices 124 6 Compensation for Occupational Injuries and Diseases Act 130 of 1993 145 6.1 6.2 Introduction Application of the Act 145 146 6.3 6.4 Duties of employer Procedure to claim compensation 146 147

A Practical Guide to Labour Law 6.5 The right to compensation 147 6.6 Compensation 148 6.6.1 Temporary total disablement 149 6.6.2 Permanent disablement 149 6.6.3 In the event of the death of an employee 150 6.6.4 Compensation for occupational diseases 150 6.6.5 Increased compensation 150 6.7 Claiming compensation from the employer or a third party 151 6.8 Occupational Diseases in Mines and Works Act 78 of 1973 151 Questions 152 Appendices 156 7 Occupational Health and Safety Act 85 of 1993 167 7.1 Introduction 167 7.2 Application of the Act 168 7.3 Advisory Council for Occupational Health and Safety 168 7.4 Duties of employers 168 7.5 Duties of employees 169 7.6 Health and safety representatives 170 7.7 Health and safety committees 171 7.8 Inspectors 171 7.9 Miscellaneous 172 7.10 Mine Health and Safety Act 29 of 1996 173 Questions 174 Appendices 177 8 Skills development 179 8.1 Introduction 179 8.2 Skills development strategy 179 8.3 The skills development strategy in the context of legislation and other policy proposals 180 8.4 Skills Development Act 97 of 1998 181 8.4.1 Introduction 181 8.4.2 Purposes of the Act 181 8.4.3 Structures of education and training 182 8.4.4 National Skills Authority (NSA) 182 8.4.5 Sector Education and Training Authorities (SETA) 183 8.4.6 Skills Development Planning Unit (SDPU) 184 8.4.7 Labour centres 184 8.4.8 Learnerships 185 8.4.9 Skills programmes 185 8.4.10 Financing of skills development 186 8.4.11 General provisions 186 8.5 Skills Development Levies Act 9 of 1999 186 8.5.1 Registration for payment 187 8.5.2 Employers liable to pay 187 8.5.3 Payment of levies 187 8.5.4 General provisions 188 8.6 Payment of grants 188 Questions 189 Appendices 191 Part 3: Labour Relations 9 Development of South African labour law 195 9.1 Introduction 195 9.2 National Economic, Development and Labour Council Act 35 of 1994 196

Contents x; 9.2.1 Establishment of NEDLAC 196 9.2.2 Objectives and functions of NEDLAC 197 Questions 198 10 Labour Relations Act 66 of 1995 199 10.1 Introduction 199 10.2 Application of the LRA 201 10.3 Freedom of association 202 Questions 204 11 Framework of the Labour Relations Act 207 11.1 Introduction 207 11.2 Trade unions and employers' organisations 208 11.3 Bargaining councils 210 11.3.1 Establishment of a council 210 11.3.2 Functions of bargaining councils 211 11.3.3 Bargaining councils in the public service 211 11.4 Statutory councils 212 11.4.1 Establishment and registration of statutory councils 212 11.4.2 Powers and functions of statutory councils 213 11.5 Commission for Conciliation, Mediation and Arbitration (CCMA) 214 11.5.1 Establishment of the CCMA 214 11.5.2 Functions of the CCMA 214 11.5.3 Governing body 215 11.5.4 Finances of the CCMA 215 11.6 Labour Court 216 11.6.1 Composition 216 11.6.2 Jurisdiction 216 11.6.3 Powers of the Court 216 11.6.4 General 217 11.7 Labour Appeal Court 217 11.7.1 Composition 217 11.7.2 Jurisdiction 217 11.8 Workplace forums 218 Questions 218 Appendices 220 12 Collective bargaining 229 12.1 Introduction 229 12.2 Recognition and the duty' to bargain 229 12.3 Organisational rights 231 12.3.1 Right of access to workplace 233 12.3.2 Deduction of trade union subscriptions or levies 233 12.3.3 Leave for trade union activities 233 12.3.4 Trade union representatives 234 12.3.5 Disclosure of information 234 12.3.6 Exercise of organisational rights 235 12.3.7 Resolution of disputes about organisational rights 235 12.4 Collective bargaining structures 237 12.4.1 Bargaining councils 237 12.4.2 Statutory councils 238 12.4.3 Workplace forums 238 12.5 The bargaining process 238 12.5.1 Bargaining unit 238 12.5.2 Bargaining levels 238

A Practical Guide to Labour Law 12.5.3 Bargaining agenda 239 12.5.4 Bargaining conduct 239 12.6 Collective agreements 240 12.6.1 Legal effect of collective agreements 240 12.6.2 Agency shop agreements 241 12.6.3 Closed shop agreements 241 12.6.4 Resolution of disputes about collective agreements 242 Questions 243 Appendices 247 13 Worker participation 255 13.1 Introduction 255 13.2 Establishment of a workplace forum 256 13.3 Worker participation 257 13.3.1 Disclosure of information 257 13.3.2 Matters for consultation 257 13.3.3 Joint decision-making 258 13.4 Dispute resolution 259 Questions 259 Appendices 261 14 Dismissals 267 14.1 Introduction 267 14.2 Definition of dismissal 267 14.3 Automatically unfair dismissals 269 14.4 Date of dismissal 270 14.5 Requirements for a fair dismissal 271 14.5.1 Substantive fairness 271 14.5.2 Procedural fairness 272 14.6 Dismissal for misconduct 273 14.7 Dismissal for incapacity 275 14.8 Dismissals for operational requirements 276 14.9 Disputes about unfair dismissals 279 14.10 Remedies for unfair dismissals 282 14.11 Transfer of the contract of employment 283 Questions 284 Appendices 292 15 Unfair labour practices 301 15.1 Introduction 301 15.2 Definition of "unfair labour practice" 302 15.3 Promotions 302 15.4 Demotions 305 15.5 Benefits and training 306 15.6 Unfair suspension and other disciplinary action 307 15.7 Refusal to reinstate or re-employ 308 15.8 Probation 309 15.9 Protected Disclosures Act of 2000 310 15.10 Job applicants 312 15.11 Dispute resolution 313 Questions 313 16 Dispute resolution 3I9 16.1 Introduction 3ig 16.2 Structures for dispute resolution 319

Contents xijj 16.3 Dispute resolution by councils 320 16.3.1 Accreditation 320 16.3.2 Jurisdiction of councils 321 16.3.3 Referral of dispute to council 322 16.3.4 Subsidies, fees and confidentiality' 322 16.4 Dispute resolution by the CCMA 322 16.4.1 CCMA jurisdiction 322 16.4.2 Conciliation 324 16.4.3 Arbitration 325 16.4.4 The arbitration award 326 16.4.5 Powers of CCMA commissioners 326 16.5 Con-arb 327 16.6 Pre-dismissal arbitration 327 16.7 Dispute resolution of specific disputes 328 Questions 337 Appendices 340 17 Strikes and lock-outs 355 17.1 Introduction 355 17.2 A right to strike 355 17.3 Definition of a strike 356 17.4 Prohibited strikes (absolute limitations on industrial action) 356 17.4.1 Essential services 357 17.4.2 Maintenance sendees 357 17.5 Protected strikes 357 17.6 Consequences of a strike 359 17.7 Other forms of industrial action 360 17.7.1 Secondary strikes 360 17.7.2 Picketing' 362 17.7.3 Protest action to promote or defend socio-economic interests 362 17.7.4 Strikes or lock-outs in response to impending retrenchments 363 17.8 Determining the nature and status of industrial action 363 17.9 Lock-outs 364 Questions 365 Appendices 370 18 Other relevant legislation 379 18.1 Introduction 379 18.2 Other labour legislation 379 18.2.1 Public Service Act 379 18.2.2 Employment of Educators Act 380 18.2.3 Municipal Systems Act 382 18.3 Other legislation... 383 18.3.1 Extension of Security of Tenure Act 383 18.3.2 Promotion of Access to Information Act 385 18.3.3 Promotion of Administrative Justice Act 387 18.3.4 Intercepting and Monitoring Prohibition Act 389 18.3.5 Electronic Communications and Transactions Act 389 18.3.6 Regulation of Interception of Communications and provision of Communication-related Information Act 390 18.3.7 ILO Convention and proposed legislation 390 18.3.8 Broad Based Black Economic Empowerment Act 392 Bibliography 395 list of cases ^-'~ Legislation 403