SmartMoves Human Capital

What is going to be considered ‘Equitable’ and ‘Tolerable Gaps’ in Remuneration going forward?

What would be the acceptable tolerance level of gap
between the top and lowest income earners in an organisation is what the Department of Labour is intent on establishing.

The revised EEA4 requires this information from designated employers with a view to identifying the highest versus the lowest remuneration paid. Ultimately the idea is to set Sector benchmarks and norms between these earners. (There are 18 Sectors identified and designated employers are required to identify under which one they operate when submitting their report).

At the recent roadshow, organisations were advised that the results of the survey will be published, and the message also given was clear, in that, if an organisation pays outside the ‘norm’ and does not comply, this would be considered a contravention and enforcement will ‘kick-in’. The question was raised as to what the Department of Labour was hoping to gain by identifying the gap between the CEO and Cleaner? The response was that they wanted to determine if the level is a ‘tolerable’ one as “CEO’s get Millions in bonuses and the lowest of the lowest only get by ‘chanting for more!”

In line with the EE Plan and Report, organisations should already be doing annual audits and the remuneration committee in place to review ‘equal pay for equal value’ is practiced. The principle is based on the ‘inherent requirements of the job’. However, the focus here is going much deeper to identify any disparities between genders, as per example. When planning, if the organisation is found to be outside the ‘norms’ they must review their policy to align to what has been recommended. The question ‘do you have a policy in place’ to determine remuneration levels fairly and guide these structures in the organisation? If not, there are many companies who don’t, best get started on one. (‘Willy-nilly’ salaries offered will not be ‘ok’).

One reason (only 1) must be given to explain the gap in remuneration whether it falls under the ‘fixed’ or ‘variable’ category. Interesting times ahead when one thinks about the global leaders whose salaries will need to be translated in Rand terms for purposes of the report and those on the Learnerships receiving a stipend… Yes indeed, interesting times ahead.

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Ensuring your business is compliant with legislation such as Employment Equity and Skills Development is like walking a tight rope. One wrong step could mean disaster.

Contact Smart Moves for an HR Audit to make sure you have everything in place to ensure that a slip up on the HR side of your business doesn't lead to disaster for the business as a whole.

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SmartMoves Human Capital has an extensive range of services to offer big and small companies alike! Visit our website to read more about what we can do for you in terms of , and !

Smart Moves Human Capital > Home Outsource all your Human Resource functions at an affordable rate, or choose a once off consultation with professional support.

What does it mean if a training company is Services SETA-accredited? It means that the company can offer training and assessment to learners who want to be assured that the training and development they receive is credible and from a professional organisation, as are their trainers.

SmartMoves Human Capital is such a company!

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Keeping up with changing employment laws is a real challenge for business owners. Many choose to ignore employment laws, believing they don’t apply to their business. But doing so could mean audits, lawsuits, and possibly even the demise of your company.

Solution:

No matter how large or small your business, it’s important to make sure you’re in compliance with laws and regulations from hiring practices, to wages, to workplace safety. Don't have time to get up to speed? Talk to SmartMoves Human Capital. We're a Services SETA-accredited HR, Training and Industrial Relations consultancy and we operate nationwide. Don't kick yourself later. Message us or mail us today!

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A T-shirt with a powerful message - ESPECIALLY in the organisational setting! SmartMoves Human Capital undertakes tailor-made training for a broad cross section of organisations of different sizes and from different backgrounds, across South Africa.

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President Cyril Ramaphosa has signed into law tough new rules criminalising the submission of fraudulent qualifications or misrepresentation of education credentials.

Job seekers and prospective students who submit fraudulent qualifications or misrepresent them will now face up to five years in prison in terms of the National Qualifications Framework (NQF) Amendment Act 2019.

SA Qualifications Authority (Saqa) chief executive Joe Samuels told Independent Media on Tuesday that Ramaphosa signed the Act into law last Tuesday. The new law was published in the Government Gazette on Monday. According to Samuels, Saqa, which is responsible for advancing the NQF objectives, will study the Act and look very seriously parts that can be implemented immediately and do preparatory work for other aspects of the new law.

The Act is expected to come into effect on a date determined by Ramaphosa by proclamation in the Gazette and its provisions may have different commencement dates.

Five-year sentences, unspecified fines or both will be handed to people found guilty of making false entries in the national learners’ records database or are party to the falsification, dissemination or publication of a qualification or part-qualification of any person. Owners of bogus education institutions will also face jail time for awarding fraudulent qualifications.

Minimum wages increased for those in the wholesale and retail sectors this month:

Minister Thulas Nxesi amends minimum wage rates in the wholesale and retail sector | IOL Business Report The department issued a statement stating that the new 4.53 percent adjustment for various job categories would be applicable from August 2, 2019.

: Why should my company use employment contracts? It's just a small business...

: Employment contracts are a legal requirement, and the only way to avoid disputes regarding terms and conditions of employment.

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: Why should I have a job description for my employees? If I put down every little thing I want them to do, then they won't do anything else anyway?!

: Job descriptions form the basis of an effective performance management system. Employees need to be given feedback on how they are doing and if they are meeting your expectations or not. Alternatively, if their work is not acceptable, it would be difficult to argue and prove that there was no misunderstanding. Employees can be tasked with additional responsibilities and would be expected to carry them out, provided they are not “unreasonable.”

Imagine being paid over R1 million to sit at home (because you have blood pressure, and then depression).

Paid sick-leave is putting pressure on government's purse - Medical Brief In the past financial year, government departments paid out more than R310m in salaries to staff on sick leave or suspended, reports the Sunday Times. Sonia Lupondwana has been paid just over R1m in the past 17 months – without lifting a finger. The Times reports, a director in Eastern Cape Health...