TOPIC 9

9 EMPLOYMENT

LEARNING OUTCOMES

After you have read this topic you should be able

to:  Explain the nature of the contract.
 Understand effect of the contract

In this chapter the following are important: Nature of an Employment

Contract, Effect of a contract

9.1 NATURE OF THE CONTRACT

Employment is a contract whereby one party (the employee), in return for
payment of remuneration by the other (the employer), puts his personal
services at the disposal of the employer in such a way that the employer is
entitled to define his duties and, at least to some extent, to control the
manner in which he discharges them.

9.2 PARTIES TO THE CONTRACT OF EMPLOYMENT

Nowadays there are statutory limits on a person’s freedom to employ
whomever he wants.

• In terms of the Employment Equity Act, 1998, a person may not unfairly
discriminate, directly or indirectly, against an applicant for employment
in any employment policy or practice on one or more grounds – race,
color, gender, sex, marital status, sexual orientation, age, disability,
religion, HIV status, political opinion, and language.

• The Employment Equity Act provides further that every designated

employer must, to achieve employment equity, implement affirmative
 action measures for people from designated groups (i.e. black people,
coloreds, and Indians- women and people with disabilities).

• In terms of the Basic Conditions of Employment Act, 1997, a person may

not employ a child
Who is under 15 years of age or under the minimum school-leaving
age in terms of any law, if this is 15 or older (s43 (1);
In employment that is inappropriate for a person of that age or which
places at risk the child’s well being, education, physical or mental
health, or spiritual, moral or social development (s 43 (2)).
“Child” for these purposes, means a person less than 18 years of age
(s1).
In certain circumstances, an employer may be ordered to re-employ a
former
Employer, for instance, where the employee reasonably expected
his fixed-term contract to be renewed.

9.3 REMUNERATION
The remuneration will usually consist in money but in the absence of any
statutory provision to the contrary, it may be in goods, or partly in money
and partly in goods. An agreement in terms of which one party places his
personal services at the disposal of the other in return for being allowed to
occupy the others property is an in nominate contract, not one of the
employment.

The amount of the remuneration need not be fixed: it suffices if it is agreed

that the employee will receive as remuneration a percentage of the profits.
At common law, the parties are free to agree on any amount of remuneration,
but nowadays statutory measures fix minimum wages in respect of many
trades and occupations. Differentiation in the amount of the wage on the
basis of factors unrelated to expertise or work performance (e.g. race or
gender) is prohibited by statute (e.g. s 6 of the Employment Equity Act,
1998).
9.4 PERSONAL SERVICES
The agreement does not have to spell out the employee’s duties in detail, but
the parties must at least reach agreement on the type of work, which he is to
perform, e.g. that he is to be lorry driver or a domestic worker.

9.5 SERVICES DEFINED AND CONTROLLED BY THE EMPLOYER

In principle, for the contract to one of the employment, the employer should
be entitled to prescribe to the employee, not only what he should do (and
when and where), but also how he should do it.
• Works for one employer only;
• Works in premises owned or controlled by the employer and according to
working hours fixed by the employer
• Is a member of the employers organization (e.g. has a staff number)
• Receives for his services a salary or wage of which at least a portion is
fixed and not dependent on productivity.
• Has deductions taken out of his remuneration ((PAYE) tax, UIF etc) by
the employer
• Is a member of and contributes to schemes established for employees
(e.g. pension, medical aid, and accident schemes) to which the employer
also contributes.
• Receives paid annual and sick leave.
9.6 EFFECT OF THE CONTRACT

9.6.1 Duration
Where the parties have agreed, expressly or tacitly, on the period of
their contract, or that the contract will continue until terminated by notice, it
endures for the agreed period or until notice is duly given, as the case may
be. If the parties do not agree on a definite period for which the contract is
to continue and make no provision for the giving of notice, the contract
continues until terminated by notice given by either party. (See below for
the notice required to terminate the contract.)

9.6.2 Duties of the Employer

• The duty to pay the employee his remuneration
• The duty to receive the employee and retain him
• The duty to provide safe working conditions
• The duty not to discriminate against the employee
• Duty not to interfere with employee statutory rights
• The duty to employ affirmative action measures
• The duty to supply employee with written particulars of employment
• The duty to inform employee of his rights
• The duty to keep prescribed records
• The duty to make certain payments on termination  The duty to provide
a certificate of service.

9.6.3 Duties of the Employee

• To enter into service of the employer
• To work competently and without negligence  To obey all reasonable
and lawful commands
• To act in good faith
9.7 COMPARISON BETWEEN EMPLOYEE AND INDEPENDENT
CONTRACTOR

Employee Independent contractor

Lawful Under a contract of service, The hallmark of a contract
authority to the payer usually has the for services is that the
command right to direct the way in contract is one for a given
which the work is done. Of result. The contractor works
course, where the nature of to achieve the results in
the work involves the terms of the contract. The
professional skill or contractor works on her/his
judgment of the worker, the own account, i.e. a plumber.
degree of control over the
manner of the performance
is diminished. What is
important is the lawful
authority to command that
rests with the payer.
How the work Tasks are performed at the An independent contractor
is performed request of the employer. The enters into a contract for a
worker is said to be working specific tasks or series of
in the business of the payer. tasks. The contractor
maintains a high level of
discretion and flexibility as
to how the work is to be
performed. However, the
contract may contain precise
terms as to materials used
and methods of
performance, and still be one
for services.

Risk An employee bears little or An independent contractor

no risk. An employee is not stands to make a profit or
exposed to any commercial loss on the task. She or he
risk. This is borne by the bears the commercial risk.
employer. Further, the The contractor bears the
employer is generally responsibility and liability

responsible for any loss for any poor work or injury

resulting from poor work. sustained in the performance
of the task. Generally a
contractor would be
expected to carry her/his
own insurance policy.
Place of A worker under contract of A contractor on the other
performance service will generally hand will generally provide
perform the tasks on the all their own assets and may
payer's premises. work at a number of
locations.
Hours of work An employee generally An independent
works standard or set hours. contractor generally sets
their own hours of work.
Leave An employment contract Generally an independent
entitlements will generally provide contract would not contain
annual leave, long service leave provisions (although
leave, sick leave and other mere non payment does not
benefits and allowances. simply make the contract
one for services).
Remuneration An employee is generally Payment to an independent
paid an hourly rate, piece contractor is based upon the
rates or award rates. performance of the contract.
Expenses An employee is An independent contractor
generally reimbursed for is responsible for their own
expenses incurred in the expenses.
course of employment.

Appointment An employee is An independent

generally recruited contractor is likely to
through an advertisement advertise their services to
by the employer the public at large
Termination An employer reserves the An independent contractor is
right to dismiss an employee contracted to complete a set
at any time (subject to any task. The payer may only
terminate the contract

state or federal laws). without penalty where the

worker has not fulfilled the
conditions of the contract.
The contract will usually
contain terms dealing with
defaults made by either
party
Delegation An employee has no inherent An independent contractor
right to delegate tasks to may delegate all or some of
another. However, there may the tasks to another person
be a power to delegate some and may employ other
duties to other employees persons.

Equipment Plant and equipment is The contract usually

usually provided by the specifies who is to provide
employer the plant and equipment.
This is usually the
responsibility of the
contractor.
Scheduling of An employer determines or The work would be
Work controls the time frame performed in accordance
within which the work is to with agreed schedules and
be performed. consistent with the
obligations under the
contract.
Expectation of An employee usually has A contractor is usually
Work an ongoing expectation of engaged for a specific task.
work.
Method of An employer usually pays A contractor usually
Payment an employee according to an invoices the person who
award or employment engages them for their
agreement. services
Taxation An employee pays PAYG A contractor usually deals
tax which the employer pays with her/his own tax.
on behalf of the employee.
Relationship to An employee is usually an A contractor's work is
the business integral part of the usually an accessory to the
employer's business business.
Ability accept A full-time employee is A contractor can accept as
other work usually restricted to work for many contracts as they wish.
the one employer during
normal business hours
 Right to refuse An employee does not A contractor usually agrees
Work have the right to to the tasks beforehand. The
continually refuse a contract governs the tasks
reasonable task. that must be performed.

9.8 THE BASIC CONDITIONS

The basic conditions of Employment Act regulate in some detail the
employee’s duty to render continuous service.

9.8.1 Ordinary Working Hours

An employer may not require or permit an employee to work more than
• 45 hours in any week; and
• Nine hours in any day if the employee works for five days or fewer in a
week or
• Eight hours in any day if the employee works on more than five days in a
week.

9.8.2 Meal Intervals

An employer must give an employee who works continuously for more than
five hours a meal interval of at least one continuous hour.
1) During the meal interval the employee may be required or permitted to
perform only duties that cannot be left unattended and cannot be
performed by another employee.
2) An employee must be remunerated
a) For a meal interval in which the employee is required to work or is
required to be available for work; and
b) For any portion of a meal interval that is in access of 75 minutes,
unless the employee lives on the premises at which the workplace is
situated.
3) For the purposes of subsection (1), work is continuous unless it is
interrupted by an interval of at least 60 minutes.
a) An agreement in writing may reduce the meal interval to not less
than 30 minutes.
b) Dispense with a meal interval for an employee who works fewer
than six hours on a day.
9.8.3 Overtime
An employer may not require or permit an employee to work overtime
except in accordance with an agreement;
To work more than –
• Three hours overtime a day; or
• Ten hours overtime a week
• An employer must pay an employee at least one and a half times
the employee’s wage for overtime worked.

9.8.4 Work on Sundays

An employee must pay an employee who works on a Sunday at double the
employee’s wage for each hour worked, unless the employee ordinarily
works on a Sunday, in which case the employer must pay the employee at
one and a half times the employee’s wage for each hour worked. If an
employee works less than the employee’s ordinary shift on a Sunday and the
payment that the employee is entitled to in terms of subsection (1) is
less than employee’s ordinary daily wage, the employer must pay the
employee the ordinary daily wage. An employer must grant paid time off
within one month of the employee becoming entitled to it. An agreement in
writing may increase the period contemplated by paragraph to 12 months.

9.8.5 Work on Public Holidays

An employer may not require an employee to work on a public holiday
except in accordance with an agreement.
If a public holiday falls on a day on which an employee would ordinarily
work, an employer must pay –
An employee who does not work on the public holiday, at least the wage that
the employee would ordinarily have received for work on that day;
An employee who does work on the public holiday
– At least double the amount referred in paragraph
(a); or
If it is greater, the amount referred to in paragraph (a) plus the amount
earned by the employee for the time worked on that day.
If a an employee works on a public holiday on which the employee would
not ordinarily work, the employer must pay that employee an amount equal
to—
The employees daily wage; plus
The amount earned for the work performed that day, whether calculated by
reference to time or any other method.
An employer must pay an employee for a public holiday on the employee’s
usual pay day
If a shift worked by an employee falls on a public holiday and another day,
the whole shift is deemed to have been worked on the public holiday, but if
the greater portion of the shift was worked on the other day, the whole shift
is deemed to have been worked on the other day.

9.8.6 Annual Leave

An employee (other than one in category C: s 19) is entitled to 21
consecutive days of annual leave on full pay after each ‘annual leave
cycle’ (i.e. employment by the same employer for 12 consecutive months) (s
20 (1) – (3)). This is qualified in two respects.
• The employer may reduce the 21-day period by the number of occasional
leave on full pay which he grants to the employee at the latter’s request
during the leave cycle (s 20 (7)).
• The 21-day period must be extended by one day for each public holiday
which falls within the period and which would otherwise have been an
ordinary working day for him (s 20 (8).

9.8.7 Vicarious Liability

Although not a duty as such visa-versa an employee, it is important to
mention that, in terms of the common law, an employer can be held liable by
a third party for the unlawful or delictual acts performed by its employees
during the course and scope of their duties. These are however, various
prerequisites for various liabilities:

A contract of employment- there must be a contract of employment between

the employer and the employee at the time of the act or mission.

Unlawful conduct- the employee must, by the act or conduct, have

committed the unlawful act. The act or mission must comply with the
requirements of a delict.
Employee acted in the course or scope of employment- the employee must
have acted in the course of his or her duties, not merely on the business of
the employer. But if the employer is vicariously liable and the employee has
been negligent, for example, the employer may have a right of recourse
against the employee.

9.9 FAIR REASONS FOR DISMISSAL

1. A dismissal is unfair if it is not carried for a fair reason and in

accordance with a fair procedure, even if it complies with any notice
period in a contract of employment or in legislation governing
employment.
2. Whether or not a dismissal is for a fair reason is determined by the facts
of the case, and the appropriateness of dismissal as a penalty. Whether or
not the procedure is fair is determined by referring to the guidelines set
out below.
3. The Act recognises grounds on which a termination of employment
might be legitimate. These are:
a. the conduct of the employee,
b. the capacity of the employee, and
c. the operational requirements of the employer's business.

Paragraph (2) of the Code issued by NEDLAC points out those dismissals
for operational requirements is categorized as ‘no fault’ dismissals. In other
words, it is not the employee who is responsible for the termination of
employment. Because retrenchment is ‘no fault’ dismissal and because of its
human cost, the Act places particular obligations on an employer, most of
which are directed toward ensuring that all possible alternatives to dismissal
are explored and that the employees to be dismissed are treated fairly.

Guidelines for unfairness

A decision to dismiss for operational reasons is regarded as unfair if
the decision is mala fide, i.e. is not based on any commercial
rationale; retrenchment is not the only reasonable option in the
circumstances.
Procedural Fairness
Paragraph (3) of the Code says that as soon an employer contemplates
a reduction of his workforce through retrenchment or redundancies (i.e.
before he reaches any decision in his regard); he must start a process of
consultation. Section 189(1) provides that the employer’s first duty is to
consult any person whom he is required to consult in terms of a collective
agreement. If there is no collective agreement, the employer must consult: a
work place forum, or if there is none, any registered trade union whose
members are likely to be affected by the dismissals, or there is no such trade
union, the employees likely to be affected by the proposed dismissals or their
representatives nominated for that purpose. The parties must attempt to reach
consensus on appropriate measures to avoid dismissals, minimize the
number, change their timing, or mitigate their adverse affects. The parties
must also try to agree on the method for selecting the employees to be
dismissed and the payment of severance pay (S 189(2) 0).
In cases where the dismissal is not automatically unfair, the employer must
show that the reason for dismissal is a reason related to the employee's
conduct or capacity, or is based on the operational requirements of the
business. If the employer fails to do that, or fails to prove that the dismissal
was effected in accordance with a fair procedure, the dismissal is unfair.

9.10.MISCONDUCT

Disciplinary procedures prior to dismissal

1. All employers should adopt disciplinary rules that establish the standard
of conduct required of their employees. An employer's rules must create
certainty and consistency in the application of discipline. This requires
that the standards of conduct are clear and made available to employees
in a manner that is easily understood. Some rules or standards maybe so
well established and known that it is not necessary to communicate them.
2. The courts have endorsed the concept of corrective or progressive
discipline. This approach regards the purpose of discipline as a means for
employees to know and understand what standards are required of them.
Efforts should be made to correct employees' behaviour through a
system of graduated disciplinary measures such as counselling and
warnings.
3. Formal procedures do not have to be invoked every time a rule is broken
or a standard is not met. Informal advice and correction is the best and
most effective way for an employer to deal with minor violations of work
discipline. Repeated misconduct will warrant warnings, which themselves
may be graded according to degrees of severity. More serious
infringements or repeated misconduct may call for a final warning, or
other action short of dismissal. Dismissal should be reserved for cases of
serious misconduct or repeated offences.

Dismissals for misconduct

1. Generally, it is not appropriate to dismiss an employee for a first

offence, except if the misconduct is serious and of such gravity that it
makes a continued employment relationship intolerable.

Examples of serious misconduct, subject to the rule that each case should
be judged on its merits, are;

o gross dishonesty or o willful damage to the property of the employer,

o willful endangering of the safety of others,
o physical assault on the employer, a fellow employee, client or
customer and
o gross insubordination.

Whatever the merits of the case for dismissal might be, a dismissal
will not be fair if it does not meet the requirements of law.

2. When deciding whether or not to impose the penalty of dismissal, the

employer should in addition to the gravity of the misconduct consider
factors such as the employee's circumstances (including length of
service, previous disciplinary record and personal circumstances), the
nature of the job and the circumstances of the infringement itself.
3. The employer should apply the penalty of dismissal consistently with
the way in which it has been applied to the same and other employees in
the past, and consistently as between two or more employees who
participate in the misconduct under consideration.
Guidelines in cases of dismissal for misconduct

Any person who is determining whether a dismissal for misconduct is unfair

should consider-

• whether or not the employee contravened a rule or

standard regulating conduct in, or of relevance to,
the workplace; and
• if a rule or standard was contravened, whether or
not- o the rule was a valid or reasonable rule or
standard;
o the employee was aware, or could reasonably be expected to have
been aware, of the rule or standard;
o the rule or standard has been consistently applied by the employer;
and
o dismissal was an appropriate sanction for the contravention of the
rule or standard.

Incapacity: Poor work performance

Probation

a) An employer may require a newly-hired employee to serve a period of

probation before the appointment of the employee is confirmed.
b) The purpose of probation is to give the employer an opportunity to
evaluate the employee’s performance before confirming the
appointment.
c) Probation should not be used for purposes not contemplated by this
Code to deprive employees of the status of permanent employment. For
example, a practice of dismissing employees who complete their
probation periods and replacing them with newly-hired employees, is
not consistent with the purpose of probation and constitutes an unfair
labour practice.
d) The period of probation should be determined in advance and be of
reasonable duration. The length of the probationary period should be
determined with reference to the nature of the job and the time it takes
to determine the employee’s suitability for continued employment.
e) During the probationary period, the employee’s performance should be
assessed. An employer should give an employee reasonable evaluation,
instruction, training, guidance or counselling in order to allow the
employee to render a satisfactory service.
f) If the employer determines that the employee’s performance is below
standard, the employer should advise the employee of any aspects in
which the employer considers the employee to be failing to meet the
required performance standards.
g) The period of probation may only be extended for a reason that relates
to the purpose of probation. The period of extension should not be
disproportionate to the legitimate purpose that the employer seeks to
achieve.
h) An employer may only decide to dismiss an employee or extend the
probationary period after the employer has invited the employee to make
representations and has considered any representations made. A trade
union representative or fellow employee may make the representations
on behalf of the employee.
i) If the employer decides to dismiss the employee or to extend the
probationary period, the employer should advise the employee of his or
her rights to refer the matter to a council having jurisdiction, or to the
Commission.
j) Any person making a decision about the fairness of a dismissal of an
employee for poor work performance during or on expiry of the
probationary period ought to accept reasons for dismissal that may be
less compelling than would be the case in dismissals effected after the
completion of the probationary period.

• After probation, an employee should not be dismissed for unsatisfactory

performance unless the employer has-
• given the employee appropriate evaluation, instruction, training, guidance
or counselling; and
• after a reasonable period of time for improvement, the employee continues
to perform unsatisfactorily.
• The procedure leading to dismissal should include an investigation to
establish the reasons for the unsatisfactory performance and the employer
should consider other ways, short of dismissal, to remedy the matter.
• In the process, the employee should have the right to be heard and to be
assisted by a trade union representative or a fellow employee.
Incapacity: Ill health or injury

Incapacity on the grounds of ill health or injury may be temporary or

permanent.

• If an employee is temporarily unable to work in these circumstances, the

employer should investigate the extent of the incapacity or the injury.
• If the employee is likely to be absent for a time that is unreasonably long
in the circumstances, the employer should investigate all the possible
alternatives short of dismissal.
• When alternatives are considered, relevant factors might include the
nature of the job, the period of absence, the seriousness of the illness or
injury and
• the possibility of securing a temporary replacement for the ill or injured
employee.
• In cases of permanent incapacity, the employer should ascertain the
possibility of securing alternative employment, or adapting the duties or
work circumstances of the employee to accommodate the employee's
disability.

Guidelines in cases of dismissal arising from ill health or injury

Any person determining whether a dismissal arising from ill health or injury
is unfair should consider-

a) whether or not the employee is capable of performing the work; and

b) if the employee is not capable-

i. the extent to which the employee is able to perform the work;

ii. the extent to which the employee's work circumstances might be
adapted to accommodate disability, or, where this is not possible, the
extent to which the employee's duties might be adapted; and
iii. the availability of any suitable alternative work.

9.11.UNFAIR DISSMISSAL
The LRA distinguishes between those dismissals, which are
automatically unfair, and those, which are unfair if the employer failed to
prove that the dismissal is fair. The basic principle inherent in an unfair
dismissal is that there has been an infringement of a basic human right.

Forms of Dismissal
The LRA has identified specific forms of dismissal:
• Termination with or without notice when the employee has committed
a serious breach of contract, it may be possible in terms of common law
for the employer to terminate the contract without notice, but in terms of
the LRA termination must be fair.

• Failure to renew a fixed-term contract of employment the employee

will have to show that the employer’s conduct has created a reasonable
expectation that the fixed term contract would be renewed, conduct such
as a previous renewal or the assurances of such a renewal may create such
an expectation.

• Termination due to pregnancy in terms of the BCEA a female

employee is entitled to four consecutive month’s maternity leave. In
defining what ‘dismissal’ is, includes the refusal to allow an employee to
resume work after she has either taken maternity leave, or when she was
merely absent from work during the permitted period of maternity leave.
Such a refusal will constitute a dismissal.

• Selective employment usually happens during retrenchments where the

employer agrees to re-employ the retrenched workers if economic
circumstances improve. The employer thereafter re-employs some of the
previously retrenched employees but not all. Those that were refused
employment can allege dismissal.

• Constructive dismissal is when the employee terminates the

employment relationship, because the employer made continued
employment intolerable.
• The employer acts in contravention of freedom of association in
dismissing an employee.
• The employee is dismissed for participating in a protected strike or
protest action
• The employee is dismissed for refusing to provide replacement labour
where other employees are on a protected strike.
• The employee is dismissed to compel him or her to accept a demand
made by the employer.
• The employee is dismissed for exercising his/her rights granted by the
LRA against the employer.
9.12.PROCEDURES FOR RESOLVING DISPUTES ARISING
OUT OF UNFAIR DISMISSALS

Dispute resolution process flow

Disciplinary hearing

Unfair labor practice or unfair dismissal

CCMA/Bargaining council

Conciliation

Arbitration

Labour Court

Labor Appeal Court

The Labour dispute resolution

The labor dispute resolution system can involve four bodies:
• Bargaining councils
• The commission for Conciliation, Mediation and Arbitration
• Labor Court
• Labor Appeal Court
There are 2 steps in the labor dispute resolution
system

Step1: Conciliation
The aggrieved employee must first refer the dispute to the appropriate
bargaining council or the CCMA. There a conciliating Commissioner
attempts to assist the parties, by means of mediation, to resolve the dispute
between them. Should conciliation fail to settle the matter, the aggrieved
party may take the dispute to step 2.

Step 2: Arbitration, Labor Court or Industrial action

If the dispute is one of interest (such as a wage dispute) step 2 could be
industrial action (a strike).
If the dispute is one of rights (such as an unfair dismissal) step 2
comprises:
• Arbitration at the CCMA or bargaining
council Or
• A hearing at the Labor Court

Disputes dealt with at the Labor Court

If conciliation fails to resolve the dispute of right the employee can only
refer to the Labor Court matters relating to:
• Freedom of association  Unfair discrimination
• Dismissal relating to:
Unfair retrenchment
Strikes
The employees refusal to accept an employer’s demands regarding a
matter of interest
The employee exercising his rights in terms of the Labor
Relations Act
The employee’s pregnancy
A transfer of a business as a going concern

Penalties awarded by the Labour Court

The labor court can order you to:
• Reinstate an unfairly dismissed employee
• Pay the employee compensation up to a maximum of 24 months’ 
remuneration in certain cases.
• Stop discriminating against employees
• Comply with affirmative action requirements

9.13.OCCUPATIONAL HEALTH AND SAFETY AMENDMENT

ACT NO. 181 OF 1993
To provide for the health and safety of persons at work and for the health and
safety of persons in connection with the use of plant and machinery;
the protection of persons other than persons at work against hazards to health
and safety arising out of or in connection with the activities of persons at
work, to establish an advisory council for occupational health and safety; and
to provide for matters connected therewith.

Employment Equity Act, 1998

Simply repealing the relevant discriminatory laws and practices cannot
redress this Act originated from the belief that the severe disparities in
employment and income left by apartheid. The stated purpose of the Act is to
achieve equity in the workplace by:
Promoting equal opportunity and fair treatment in employment through the
elimination of unfair discrimination

Implementing affirmative action measures to redress the disadvantages in

employment experience by designated groups, in order to ensure their
equitable representation in all occupational categories and levels in the
workforce (s2).

9.14 BASIC CONDITIONS OF EMPLOYMENT ACT

The purpose of the Act is to advance economic development and social
justice by fulfilling the primary objects of this Act, which are:
• To give effect to and regulate the right to fair labor practices conferred by
section 23(1) of the constitution
• To give effect to obligations incurred by the Republic as a member state
of the International Labor Organization
Skills Development Act
The purpose of this Act:
• To develop skills of the South African workforce
• To increase the levels of investment in education and training in labor
market and to improve the return on that investment.
• To encourage employers to use the workplace as an active learning
environment, to provide employees with the opportunity for new entrants
to
• the labor market to gain work experience etc
• To encourage workers to participate in learner ship and other
training programmes.
• To provide and regulate employment services
• To assist work-seekers to find work, retrenched workers to re-enter the
labour market, employers to find qualified employees

REVIEW QUESTIONS

1. Discuss the various grounds of dismissal

2. Zondo is very poor and wants any job that anyone would give him. A
local shopping centre allows him to collect shopping trolleys in return for
tips.

However, they made him to sign a contract stating that he is an independent

contractor.
One day a woman named Zanele employed by a distributor, WALTONS
was making a delivery at the shopping centre. After delivery, she drove
her car and parked it at the customers’ bay so that she could buyer her
groceries.

WALTONS had strictly instructed all its drivers not to engage in any
personal business during the course of their everyday duties. Zanele
went in, bought her grocery and as she was reversing she knocked Zondo
and broke his leg. The shopping centre tells Zondo that because he
cannot walk, he is out of job.

Write an essay using the following as guidelines

 • Define employment
• Advise to Zondo with regards to his rights as an independent
contractor
• Legal actions he should take; o against the shopping centre, and o
against Zanele if any?
• The concept of vicarious liability.

3. Draw the dispute resolution flow

4. Explain the 2 steps in the labour dispute resolution system?