Compliance & Legal

What Employers need to know about the NEW COIDA amendments

helenw — Mon, 23 Mar 2026 16:21:39 +0000

What Employers need to know about the NEW COIDA amendments

For years, most employers associated Compensation for Occupational Injuries and Diseases Act (COIDA) with only two things:

*reporting work related accidents and

*paying annual assessments.

This is no longer enough. The 2022 amendments now shift the focus to rehabilitation, reintegration and returning inured employees to work. This creates new statutory duties for employers and it will directly impact how incapacity and ill-health cases are managed in the workplace.

Here are six (6) important change that employers need to know:

1. Rehabilitation & Reintegration

A new Chapter VIIA of the COIDA, 2022, requires employers to support injured employees in returning to work. The rehabilitation may include-

A. Clinical rehabilitation and the provision of assistive devices for the purpose of physical and psychological recovery of the employee and to reduce any disability resulting from an occupational injury or disease;

B. Vocational rehabilitation to assist an employee to maintain employment, obtain employment, regain or acquire vocational independence though retraining and redeployment; and

C. Social rehabilitation to assist in restoring an employee’s independence and social integration to the maximum extent practicable.

2. Incapacity due to Ill Health
Previously, incapacity enquiries largely focused on whether the employee can perform their job under the Labour Relations Act. Now Employers will need to demonstrate they have:

A. Engaged with Compensation Fund recommendations and rehabilitation assessments;
B. Considered phased return to work arrangements – which now includes temporary adaptations such as reduced hours, light duty, and work from home where appropriate;
C. Explored retraining and redeployment options.
D. Taken Mental health & PTSD related functional limitations seriously, not only obvious physical restrictions.

Without evidence of genuine rehabilitation and integration efforts, incapacity dismissals will be harder to defend.

3. Expansion of the term “in the course of employment”

The definition now includes:

Training and offsite events – Accidents during training sessions, induction / onboarding programmes, off-site workshops, will form part of this definition going forward.
Travel in Employer-provided transport – Injuries on the way to or from work in employer transport can be included in this definition going forward.

The judgement in Bent v Rand Mutual Assurance (Pty) Ltd (Appeal) 9 December 2025, the High Court also clarified something important:

that employment does not terminate the moment an employee stops working. Where an employee is still on the employer’s premises and is transversing areas that form part of the workplace infrastructure, such as staircases and exists, the employment relationship continues for the purposes of COIDA. As long as the employee is still within the employer’s premises and exposed to risks inherent in that environment, the employment nexus remains intact and does not end when an employee clocks off. 2026 Newsletters

4. “Serious and wilful misconduct” no longer automatically excludes compensation

Where an accident is linked to the employee’s serious and wilful misconduct, compensation may still be payable. This means employers may need to manage both disciplinary processes and rehabilitation / return to work obligations.

5. PTSD, Mental health and Psychological injury are now recognised
Post-traumatic stress disorder (PTSD) is now recognised as an occupational disease.

Employees may claim compensation if PTSD arises from workplace incidents such as:

*armed robberies
*fatal accidents in employer transport
*serious industrial accidents
*repeated exposure to traumatic material.

Employers should now:

• Include trauma debriefing, counselling and appropriate psychiatric care into post-incident responses.
• Train managers and supervisors to recognise signs of PTSD and other mental health conditions and to refer employees early.
• Include psychological risk in their hazard identification and risk assessments especially where employees are exposed to violence, fatalities, or disturbing content as a regular part of their duties.
• Ensure incapacity enquiries/hearings for mental health conditions are informed by appropriate clinical evidence and aligned with the Compensation Fund’s PTSD recognition and recommended rehabilitation plans.

6. Compliance and penalties is increasing
COIDA Inspectors now have the powers to:

*to conduct workplace inspections
*issue compliance orders
*and enforce compliance through the Labour Court.

From 1st April 2026, administrative penalties may apply if employers fail to:

*Report accidents correctly and on time.
*Pay the first three months of temporary disability compensation.
*Maintain employment records and earnings for at least 5 years.

The claim prescription period has also increased from twelve (12) months to three (3) years.

What should employers do now?

*Update occupational injury and return to work policies.
*Review risks around employee transport and training events.
*Implement structured rehabilitation and Return to Work procedures.
*Partner with multidisciplinary rehabilitation providers.
*Train HR, line managers and Health & Safety representatives on the amendments.

The big shift:

COIDA is no longer just about claims administration. It is about actively managing employee recovery and return to work.

Question for employers?

Do you currently have a formal Return to Work procedure in place for injured employees – or is this still handled case by case?

If you would like help implementing COIDA compliant reporting and Return to Work procedures, please feel free to reach out.

Helen 082 716 7597 or email helen@pplsolutions.co.za OR helen@synergyhr.co.za

Kevin 068 606 7013 or email kevin@synergyhr.co.za

Balancing Compliance and People: EE Updates & HR Support for SMEs

helenw — Thu, 11 Sep 2025 12:18:12 +0000

I’m currently assisting a number of clients with finalising their 2025 Employment Equity (EE) Plans for submission to the Department of Labour (DOL) later this year. What’s interesting is that the majority of these businesses don’t have an in-house HR department.

Now, here’s the challenge: the EE process should ideally have started at least four months ago. Yet, many clients weren’t even aware that they needed to have their new 2025 EE Plan in place by 31 August 2025 in order to report later in the year. As you can imagine, trying to squeeze four months of work into just a few weeks is stressful—for both the client and the service provider.

The first step in the process is the circulation of EEA1 forms to staff. These forms are critical, as they provide the base information to categorise staff correctly by race, gender, and disability. Right now, many clients are still rushing to get these forms back. If the Workforce Profile was prepared before these EEA1 forms were received, there’s a high chance the data is outdated or incorrect—which could affect compliance.

Here’s the bottom line:
If you employ 50 or more staff, you are a designated employer in terms of the EE Act. That means you must develop a 2025 EE Plan that aligns with your industry sector targets. This plan must include your annual targets showing how you’ll reach your industry’s sector goals by 31 August 2030.

A Quick Checklist of EE Activities that should have been met by 31 August 2025:
• Do a gap analysis of your top four occupational levels vs the sector targets.
• Analyse income differentials to identify pay gaps.
• Run leadership and management training on EE 2025 legislation and amendments.
• Equip your EE Committee with knowledge of the 2025 amendments and admin processes.
• Facilitate awareness workshops on harassment and disability inclusion.
• Circulate and collect EEA1 forms, then update your HR/payroll records.
• Acquire a disability validation tool.
• Conduct a harassment risk assessment.
• Complete and capture your EEA12 & EEA13 reports.
• Consult your EE Committee on barriers identified in the analysis process.

Many companies are at different stages of this list, but most are definitely feeling the pressure as the reporting deadline gets closer.

EE compliance is just one example of where outsourced HR adds real value. Here are a few more situations I’ve recently assisted clients with:
1. Developing an appraisal system
A manufacturing client needed a performance appraisal process built around their unique operations. I facilitated workshops with line managers, drafted appraisal templates, and structured the rollout plan. Doing it this way ensures the system is practical and not just “copy-paste” from another business.
2. Adapting global policies for South Africa
Another client had HR policies drafted in another country. Instead of rewriting them, I created South African annexures that complied with local labour laws, ran staff workshops, and updated the Employee Handbook for future hires.
3. Employee queries when no HR exists
While onsite, staff often approach me with questions—like what happens when their fixed-term contract expires, or how to enrol for benefits like a provident fund. I step in to ensure they’re given the correct documentation and guidance.
4. Disciplinary support
Line managers sometimes face tricky situations with staff discipline. I recently guided a manager through the correct steps, referencing the company’s Code of Conduct, and explained what to do if the behaviour repeated. This kept the process fair and legally compliant.

All of these examples show one thing: HR support is not a “nice-to-have”—it’s essential.
Without HR, you as the business owner automatically become the HR manager. That means you’re expected to know labour law, manage staff conflicts, run compliance processes, and keep employees engaged—all while running your business. Let’s be honest, that’s not realistic, nor is it the best use of your time.

Your energy should be focused on growing your business, bringing in new clients, and leading operations—not sitting with legislation, staff disputes, or policy drafting. That’s where HR support (whether part-time, outsourced, or project-based) comes in.

By partnering with an HR specialist, you:

Save time and reduce risk of non-compliance.
Build fair, consistent systems that staff can trust.
Get peace of mind knowing employee matters are handled correctly.
Ensure your policies, processes, and benefits keep pace with South African labour laws.
In short: If you don’t have in-house HR, outsourced HR support makes sure the people side of your business is handled—leaving you to do what you do best: run and grow your business.

If you need assistance in introducing an Appraisal system for your organisation, please do not hesitate to reach out to me at: Helen@pplsolutions.co.za, helen@SynergyHR.co.za, info@SynergyHR.co.za or on +27 82 716 7597.

Regards

Helen

7 Steps to Set Up Your EE Committee

helenw — Wed, 11 Jun 2025 10:13:33 +0000

7 Steps to Set Up Your EE Committee

In my previous Blog I explained the nuts and bolts of Employment Equity. This time I explain how to set up your Employment Equity (EE) Committee in 7 steps.

You may be thinking why does this matter?

It gives your employees a voice in a shaping a fair workplace.
It supports transformation and diversity – which is good for business.
It keeps you compliant with EE legislation and audit ready.

Many businesses do not know where to start when it comes to setting up the EE Committee which is doable when you know the steps.

Step 1 Check if you are a “designated employer”?
Designated employers have 50+ employees.

Step 2 Engage your team
Speak to management, employees and unions (if applicable).

Step 3 Appoint your committee members
* Include representatives across race, gender and occupational levels.
* Ensure both management and employee participation.
* Conduct a workplace “election” to select the EE Chairperson, and EE Committee representatives to ensure fairness and equal representivity.
* Issue a Letter of Appointment to each of the successful candidates including their role and the period they will sit on the Committee.
* An EE/ Training “Coordinator” is required take the minutes at meetings and to provide various other supportive admin tasks for the EE Committee. This can be a HR representative or an Admin employee.

Step 4 Draft Terms of Reference
* Define the Purpose of the Committee. This Committee can also double up as the Training Committee for Skills Development initiatives.
* Define Roles and Responsibilities for the EE Chairperson, EE Committee Members, and HR/ Admin Representative.
* Define the frequency for meetings. Typically, this is quarterly however can be less frequent or more frequent depending on the size of the business.

Step 5 Train the Committee
Most members are not legal experts – they need to know what is expected and how to contribute. Equip them with an understanding of their role and of EE/Skills Development legislation.

Step 6 EE Meetings
* The EE Committee helps shape your EE plan and monitors’ progress. This is an active role – not an annual tick-box exercise.
* The Minutes of the EE Committee Meetings feed into your EE Plan and Reporting functions each year as well as into the WSP and ATR reporting processes to SETAs.
* Develop a standard EE / Training Agenda to ensure that relevant matters are discussed at each meeting.
* The Minutes of the meeting should follow the agenda items.

Step 7 Record keeping
* Keep accurate Signed copies of the Minutes of the meetings.
* Keep accurate records of EE / Training Committee membership and elections undertaken.

I have assisted several organisations in laying a solid foundation for EE Committees and compliance. If you’d like a checklist that provides further details or you would like to chat about your specific needs, please drop me a message via email at helen@pplsolutions.co.za or contact me via WhatsApp at +27 (0)82 716 7597.

Yours in HR

Helen

Employment Equity Explained

helenw — Thu, 08 May 2025 13:06:24 +0000

Employment Equity Explained

The purpose of this article is to provide Employment Equity information in an easy-to-read format so that every business owner can understand it. Wherever ‘Employer’ is used below this means a Designated Employer.

Part 1- EE Definitions and general terms

• Who is a Designated Employer?
This is an employer with more than 50 employees.
• What are the top 4 Occupational Levels?
1. Top Management
2. Senior Management
3. Mid management/ Professionally Qualified/ Experienced specialists
4. Skilled Workers/ Supervisors / Foreman and Junior Management

• Who are the Designated Groups?
Black people (African, Coloured and Indian), Women and people with disabilities.
• What is the EAP?
This is a document that details the Economically Active Population between the ages of 15 and 64 years old, by race, gender, nationally and provincially.
• Temporary Employees
People employed for less than 3 months.
• What are Numeric Goals?
The entire workforce profile in terms of race, gender and disability, the employer seeks to achieve by the end of the EE plan period. (5 years)
• What are Numeric Targets?
The entire workplace profile in terms of race, gender and disability, the employer seeks to achieve by the next reporting period. (1 year)
• What 12-month period should be included in the reporting cycle?
1st October to 30 September.
• What period should the Employment Equity Plan cover from 1st April 2025?
5 years from 1 September 2025 to 31 August 2030.
• What is the deadline for submitting EE reports by hand, to the Department of Labour?
Annually, from 1st September until the first working day of October.
• What is the deadline for submitting EE reports electronically to the Department of Labour using the online EE reporting system?
1st September until 15th January the following year.

• First reporting period for employers that become a designated employer on or after the first working day of April 2025.
The first EE report is to be submitted in the following reporting cycle.
• A designated employer that is a holding company controlling more than one registered entity may choose to submit a consolidated report. Where this is the case, the consolidated report must be supported by individual EE Plans for each of the registered entities included in the consolidated report and adopt a method of reporting that remains consistent for the duration of the plan.

• Public companies that are designated employers must publish a summary of their EE Report in their annual financial report including the information specified in the EEA10 template.

• Who may verify and authorise the information contained in the EE report?

CEO – Private sector
Accounting
Officer – Organ of State

Part 2 – Duties of a Designated Employer

Step 1 – Collect information and conduct an analysis

• The Employer must request each employee in the workforce to complete a declaration using the EEA1 template.

• Where an employee refuses to complete the form or provides inaccurate information, the employer may establish the relevant details by using reliable historical and existing data and persons with disabilities have the right not to declare their disability.

• Conduct a review the employment policies, practices and procedures as well as of the working environment in order to identify employment barriers which adversely affect people from designated groups from being equitably represented across all occupational levels. The outcome of the analysis must be documented using the EEA12 template. The completed document remains an internal record.

When conducting this analysis, the employer may take the following processes into account –
a) Recruitment, selection, pre-employment testing, induction, promotion and retention.
b) Succession and experience planning, promotions and transfers.
c) Job assignments and training opportunities.
d) Performance and remuneration including equal pay for work of equal value.
e) Discipline and dispute resolution.
f) Working conditions, including the accommodation of cultural, religious and other diversity differences.
g) Reasonable accommodation including persons with disabilities.
h) Corporate culture.
i) Any other policy, procedure or practice that may arise from the consultation process.

Step 2 – Duty to prepare and implement an EE Plan

• Conduct an analysis of the workforce profile. This is a snapshot of each occupational level on a particular date in terms of race, gender and disability.

• The workforce profile is compared to the occupational levels and designated groups using the latest EAP record. (Refer definitions)

• The employer must record on the EEA12 template whether they are using the National or Regional EAP for their analysis.

• Further to the requirements of the EAP, employers must comply with the relevant sectoral numerical targets for the sector which they operate in. These sector targets came into effect on 1st April 2025. (Refer Govt. Gazette 52514 dated 15/4/2025)

• The 5-year sectoral numerical targets are not intended to add up to 100% as these targets exclude white males with no disabilities and foreign nationals.

• If the employer operates in more than one sector, then the numerical targets for the sector in which the majority of the employees are engaged in, will apply.

• The 5-year sectoral numerical targets are key milestones towards achieving equitable representation of the designated groups within the upper four occupational levels of an employer’s workforce in relation to the demographics of the applicable EAP and for person’s with disabilities. The 5-year target for people with disabilities is 3% across all 18 sectors.

• When determining their annual EE targets towards achieving the 5-year sectoral numerical targets, a designated employer must set numerical targets for all designated groups in each of the upper four occupational levels in relation to the applicable sectoral targets and EAP and for person’s with disabilities.

• The EE Plan is drafted by using the EEA13 template and the EE plan must contain all the elements contained in the EEA13 template that is included in the 2025 EE regulations. The completed document remains an internal record.

• A designated employer must avoid perpetuating the over-representation of any group of their representation if this exceeds the applicable EAP in a particular occupational level.

• Where the numerical target has been exceeded for a particular designated group at an occupational level, they should continue to set targets that maintain compliance with the EAP.

• Numeric goals and annual EE targets at the semi-skilled and unskilled occupational levels must be set in the EE plan taking into account the applicable EAP.

• Compliance will be assessed against annual targets towards meeting a relevant 5-year sectoral numeric target.

• There will be no penalty or any form of disadvantage if there are reasonable grounds to justify failure to comply with any target.

Step 3 – Duty to Report

• EEA2 & EEA4 reports can be delivered to the Department of Labour between 1st September and the first working day of October each year.

• **The completed EEA12 and EEA13 forms are used to complete the EEA2 report.

• Electronic submissions of the EEA2 and EEA4 reports by using the online reporting system via www.labour.gov.za and must be successfully submitted by 15th January each year. It is advisable to submit the reports as early as possible online to prevent technical problems or overloading the system at the last minute. The EEA 4 report is made up of Income Differentials across the Occupational Levels. There is no preparatory document for these details. Most payroll systems have these details within the system in the relevant format required by the Department of Labour. If you don’t use a payroll system, the details will need to be extracted manually from your payroll records.

• If a designated employer is unable to report in any year the Director-General must be notified in writing using the EEA14 form, by the last working day of August of that year.

• After submission of the reports, the Department must provide an employer with one of the following –
a) A letter rejecting the report because it does not comply with the requirements of the Act.
b) A letter informing the employer of errors in the report and requesting the employer to rectify the errors within a specified period.
c) An electronic acknowledgement letter stating that the report is complete and has been successfully submitted into the Department’s EE system.

Summary of the documentation required for Analysis, Preparation and Implementation of Employment Equity

1. Download the latest National & Regional EAP records. These can be downloaded from the latest Employment Equity Commission Report published. Or you can download this record from Stats SA.
2. Download a copy of the Government Gazette 52514 dated 15/4/2025 for the latest Sectoral Numerical Targets.
3. Download a copy of Government Gazette 52515 dated 15/4/2025 for the 2025 EE regulations.
4. Download a copy of the Code of Good Practice on the Preparation, Implementation and the Monitoring of the EE Plan – Government Gazette 40840 dated 12 May 2017. This document is used as a cross reference with the 2025 EE Regulations and provides guidelines of how the Designated employer should prepare to report to the Department of labour.
5. Download a copy of the Code of Good Practice: Integration of Employment Equity into HR Policies and Practices Amendment dated 15 February 2022. This document provides guidelines on how to integrate EE into HR policies and practices.
6. Download a copy of the EEA1 document for staff to complete and return to HR at the beginning of the EE process.
7. Download copies of the EEA12 and EEA13 templates to be used to conduct the analysis and draft the EE plan once the analysis process is complete. **Then the details from these templates are used to complete the EEA2 report.
8. If you will be submitting the EE reports by hand to the Department, then you should download copies of the EEA2 and EEA4 templates for completion once the analysis process is complete. The EEA2 template details the analysis process, the workforce profile and other information required. The EEA4 document reflects the earnings differentials across all the Occupational Levels of the organisation.
9. If you are using the online EE system to submit your reports, then you don’t need to download the EEA2 and EEA4 templates for completion. You will complete the EEA2 and EEA4 template online. You can download copies of the completed reports once you have successfully submitted these reports online. The electronic letter confirming successful submission, will be emailed to you usually the same day that you have successfully submitted the reports online.

If you remain confused by all these details, please reach out to me for assistance with all your EE processes – helen@pplsolutions.co.za or helen@synergyhr.co.za or 082 716 7597.

Yours in HR,

Helen

Foundational HR and why you need it!

helenw — Tue, 08 Apr 2025 11:44:57 +0000

Foundational HR and why you need it!

Running a small business in South Africa comes with plenty of challenges — from managing finances, juggling day to day operations and securing new customers. With so much going on, it’s no surprise that many small business owners push HR to the bottom of their priority list.

But here’s the truth: foundational HR is not just for big corporations. In fact, getting your HR basics right early on can protect your business, improve staff performance, and create a solid platform for sustainable growth.

But what exactly is “Foundational HR,” and why is it critical for small businesses, even those with just a handful of employees?

What Is Foundational HR?

Foundational HR refers to the essential building blocks every business needs to manage its people effectively. Think of it as the HR “starter pack”.

Even if you only have one or two employees, these are the key documents and processes every small business should have:

• Employment contracts that comply with the Basic Conditions of Employment Act (BCEA).
• Job descriptions outlining roles and responsibilities.
• Workplace policies, including leave, conduct, grievance, and disciplinary procedures aligned with the Basic Conditions of Employment Act (BCEA), Labour Relations Act (LRA), Employment Equity Act (EEA), Occupational Health & Safety Act (OHSA) and Protection of Personal Information Act (POPIA).
• Payroll compliance, including payslips, UIF, and tax deductions that meet South African Revenue Services (SARS) compliance requirements.
• Employee record-keeping with signed documents and performance notes that are confidentially stored and maintained.
• An onboarding process to welcome and train new hires.

It’s not just paperwork — these foundational elements set the tone for your company culture, protect your business from risk, and provide clarity for your employees. It’s the framework that supports your team as you grow.

Why Many Small Businesses Overlook HR (and Why That’s Risky)

Many small business owners believe:

“We’re too small for HR”
“I’ll sort it out when I hire more people”
“It’s too expensive to get HR support”

The truth is, waiting too long to set up basic HR structures can cost you – legally, financially and reputationally.

• Non-compliance with South African labour laws and payroll requirements (which can result in fines or CCMA cases).
• Disputes and confusion due to unclear job roles or poor communication.
• High staff turnover when employees feel unsupported or treated unfairly because there is no formal onboarding, growth or feedback process.
• Time and money wasted resolving issues that could have been prevented.

The Benefits of Foundational HR for Small Businesses

Here’s how investing in your HR foundation pays off and makes business sense:

Legal Compliance

Stay in line with labour legislation like the BCEA, LRA, EEA, SDA, SDL and POPIA. Protect your business from legal trouble by having proper contracts, policies, and procedures in place. After 30 years of CCMA support to employees, staff are smarter and better informed these days about their rights and how they should be treated. South African labour laws are strict, and even unintentional mistakes can lead to CCMA cases or penalties.

Clarity and Structure
Everyone understands their roles, responsibilities, and rights. This reduces misunderstandings and boosts team accountability. Well-written job descriptions and policies help everyone understand their role and the rules. This reduces micromanagement, boosts accountability, and avoids misunderstandings.

Better Employee Experience
People want to work for businesses that treat them fairly and professionally. A simple onboarding process, clear communication, and performance feedback go a long way in building loyalty. Furthermore, your team feels valued, supported, and clear about expectations. This improves morale, productivity, and retention.

Easier Growth and Scalability
With the right HR systems in place, hiring and managing staff becomes smoother as your business grows. When your HR basics are in place, it’s much easier to grow. You won’t need to reinvent the wheel every time you hire someone new or address a staff issue.

The good news?
You can set up a strong HR foundation without hiring a full-time HR professional. Project-based or outsourced HR services offer flexible, cost-effective support tailored to the size and needs of your business.

As an HR consultant working with South African SMMEs, I offer practical, affordable HR solutions to help you get the basics right — and grow from there.

Foundational HR isn’t a “nice-to-have” — it’s a must-have for protecting your business, building your team, and enabling long-term success.

Need help getting started?

If you’re unsure where to start, consider a simple HR audit or health check. With the right support, you can get your people processes in order — efficiently and cost-effectively.

Ready to put your HR foundation in place? Please reach out and let’s chat about how I can help your business stay compliant and grow with confidence.

Yours in HR,

Helen

Do you know which staff benefits are mandatory in terms of law?

helenw — Mon, 03 Feb 2025 12:17:29 +0000

Do you know which staff benefits are mandatory in terms of law?

The Basic Conditions of Employment Act (BCEA) stipulates the minimum requirements that every business should provide to their employees. Hereunder are the details you need to be compliant.

1. Annual Leave

Fulltime employees – At least 21 consecutive days, including weekends excluding Public Holidays. This is 15 working days for employees who work Monday to Friday. This is 18 working days for employees who work Monday to Saturdays.

Part time employees – One day for every 17 days worked OR 1 hour for every 17 hours worked.

The monthly accrual of annual leave for an employee who is entitled to 15 working days is 1.25 days.

The monthly accrual of annual leave for an employee who is entitled to 18 working days is 1.5 days.

TIP - Payment of annual leave owing is only made on termination of employment. It is illegal to offer payment in place of granting annual leave.
TIP - Employers may only grant leave up to 6 months after the end of the annul leave cycle.
NB – Any unused annual leave is carried over to the following year.

2. Sick Leave

Employees are entitled to the number of days they would regularly work in 6 weeks, every 3 years. For example, a 5 day worker is entitled to 30 days sick leave every 3 years. A 6 day worker is entitled to 36 days sick leave every 3 years.

NB - However, during the first 6 months of employment, employees are entitled to 1 day paid sick leave for every 26 days worked.

When do the annual or sick leave cycles commence?

On the employee’s start date /or commencement of employment with the organisation in accordance with their contract of employment.
Please bear in mind, that each employee’s annual leave and sick leave cycles will vary in accordance with their length of service for annual leave and the number of 3 year cycles they have completed for sick leave.
If you use a HR Information System and a module for Leave is included, the system will automatically calculate the monthly annual leave and sick leave accruals & other leave entitlements for you and will carry over the correct balance to the new month after the system is rolled over after each pay period is closed.

NB – Any unused sick leave remains available to the employee during the 3 -year sick leave cycle. At the end of the sick leave cycle any unused sick leave is forfeited and does not carry over the new cycle.

3. Maternity Leave

Pregnant employees are entitled to at least 4 consecutive months of maternity leave. Maternity leave usually begins 4 weeks before the expected birth date, but employees may begin their leave earlier. This may be under the advice of their Doctor / Health Practitioner and in which case the employee should provide a letter to the employer from the Doctor that states the date that maternity leave should commence and possibly include the reasons for the high risk pregnancy.

Employers are not obliged to pay the employee during this time however, the employee’s employment is secured during the maternity leave period. UIF (Unemployment Insurance Fund) will cover 60% of the employee’s salary for up to 121 days.
The Employer should provide the employee with a UI-19 form just before the commencement of the maternity period, so that the employee can register for maternity benefits with the UIF office.

NB – Please bear in mind that if the employee has made a claim for maternity benefits from the UIF office within the immediate 4 years prior, UIF will only pay a prorate portion of the benefit based on the amounts paid during the previous claim.

4. Paternity Leave

This benefit is 10 days unpaid. Employees may claim 66% of their regular earnings from the UIF subject to the maximum income threshold.

In the case of adoption, the child must be younger than 2 years old.

5. Family Responsibility Leave

Certain South African employees are eligible** to receive paid leave under the following circumstances:

Birth of a child.
To care for a child that has fallen ill.
Or upon the death of an immediate family member defined as follows – spouse, life partner, parent or adoptive parent, child, adopted child, grandchild, grandparent or sibling.

**Only an employee who has worked for longer than four months for the same employer, and who is employed on more than four days per week with the same employer, qualifies for family responsibility leave.

What is the entitlement?

Employees that qualify for Family Responsibility Leave are entitled to 3 days additional paid leave per annum.

NB – Any unused benefit is not carried over to the next year. It is forfeited.

6. Overtime Pay

Employers are required to pay their employees overtime pay. Only employees that fall under the Earnings threshold are entitled to overtime pay. The Earnings threshold is determined by the Minister of Labour over regular periods and the amendments usually take effect on 1st April.

Overtime is capped at 3 hours per day and 10 hours per week.
Employees can agree to work up to 15 hours overtime, but only for up to 2 months of a year.
Overtime is paid at 1.5 times the standard hourly rate.
Employees who regularly work on Sundays must be paid 1.5 times their regular wage. However, employees who do not usually work on Sundays must be paid double their regular wage.
An employee may agree to accept paid time off in exchange for working overtime.

7. Unemployment Insurance Fund

Both the employer and employee contribute 1% each to the Fund monthly. This fund is setup to offer temporary financial support in cases of unemployment, adoption, parental leave, or illness. Dependents of deceased contributors may also claim from the Fund.

8. Compensation for Occupational Injuries & Diseases (COIDA)

COIDA is a program that compensates workers injured or infected with diseases during their employment. The program also covers dependents of workers who die on the job as a result of work related accidents or contraction of occupational diseases.

Employers submit a Return of Earnings report for COIDA purposes to the Compensation Commissioner by 30 June each year.
The Compensation Commissioner assesses the information included in the Return of Earnings and forwards an invoice to the Employer to pay the annual amount due for COIDA. Payment of this invoice is payable within 30 days of the date of the invoice.
Without this ‘insurance’, employers are held liable for the costs of an injured employee’s medical treatment and are also open to civil claims in respect of medical costs and compensation for loss of earnings, permanent disablement, death and even pension payments.

9. Skills Development Levy

This is a tax levied against businesses to develop and improve workplace skills. Employers contribute 1% of the total amount paid in salaries to employees each month. Employees do not pay towards the Skills Development Levy.

The employer pays the 1% levy over to SARS monthly along with PAYE and UIF contributions using the EMP201 form and process.
SARS distributes the Skills Levies received to the National Skills Fund and the relevant SETA (Sector Education Training Authority) that the employer belongs to.
The employer will have access to a mandatory grant paid by the SETA from Skills levies funds paid over by the employer during the prior year, provided they submit a Workplace Skills Plan and an Annual Training Report to the SETA each year by no later than 30 April that meet with SETA requirements.

A final word on benefits that are not required by law-

These benefits typically include the following –

Retirement Funds (Pension and Provident Funds)
Private medical aid cover
Death in service, Funeral cover, Disability or Income Protection
Annual Bonus/ 13th cheque/ and Performance Bonus
Annual Increases

If these benefits are made available to employees, the rules and regulations of these benefits are driven by internal company policy and not by external legislation. Each organisation may have different rules and regulations that govern the benefit offering and membership access.

In the case of annual increases and the payment of bonuses, reference is typically made to business financial performance the year prior.

Larger organisations are in a better position to provide additional benefits to their employees. However small businesses struggle to compete to provide the same benefits. Smaller business could provide a transport allowance or some other subsidy to staff that will help them to pay for any additional benefits in their private capacity.

Thank you for taking the time to read this blog post. I trust it has been of value to you as a business owner. If you have any comments please feel free to forward these to helen@pplsolutions.co.za or give me a call on 082 716 7597 if you would like to discuss employee benefits further.

Yours in HR,

Helen