Human Capital

There is a common perception of an unnecessary large gap between C-suite pay and general staff pay and that this gap is widening every year. It is important to explore what drives these perceptions whether they are based on fact or in fact myths.

The recent raids on businesses employing illegal foreign nationals in Cape Town underscores the Department of Labour’s mission to ensure that employers comply with labour legislation as it relates to the employment of foreign nationals.

The Department of Home Affairs has warned that they will be increasing the number of audits and investigations among South African companies that employ foreign nationals. This isn’t an empty threat and they are clamping down on foreign nationals who contravene the act as well as employers who are illegally employing foreigners.

The Labour Court delivered its judgment in the matter of SATAWU and Others v Sihlangene Security & Cleaning CC and Another, whereby the court showed its displeasure for a complete absence of prior procedure followed when dismissing employees. This judgment offers a stern reminder to employers to ensure that dismissals are effected not only for a fair reason, but also in accordance with a fair procedure. Failure to do so may result in a hefty compensation award coupled with a cost order.

2018 Deloitte Human Capital Trends Report - The South African country report is a companion to the Deloitte Global Human Capital Trends 2018 report, which is one of the largest of its kind in the world. Over 11,000 executives from 124 countries participated in the global survey, including 354 South African business and HR leaders.

Is a dismissal of an employee who posted alleged racist comments on Facebook substantively fair? The dismissal of an employee who posted alleged racist comments on Facebook will be substantively fair only if a reasonable person ascribes the comment as racist and the comment has a negative bearing on the employee’s continued employment relationship.

Employers need to think twice before they simply suspend an employee. If the suspension turns out to be unfair, the employer may need to fork out more money than bargained for. There are two types of suspensions in the workplace, namely precautionary suspensions and punitive suspensions.

Is the money spent on procuring and retaining employee skills an expense or an investment? Either way, employee costs are most often amongst the biggest if not the very biggest.

Current legislation states that temporary employees work under a dual relationship between a Temporary Employment Service (TES) provider and their Client, for the entirety of their contract. However, there has been an uproar in the media in recent months, which questions the value of TES providers in this relationship.

Despite decades of progress towards achieving equality in the workplace, women remain significantly under-represented in emerging tech. The imbalance between men and women in the technology sector is unlikely to be remedied unless organisations, schools and universities work together to change entrenched perceptions about the tech industry, and also educate young people about the dynamics and range of careers in the technology world.