BUSINESS LAW & TAX Major change ahead in the workplace

Jonathan Goldberg, John Botha & Grant Wilkinson Global Business Solutions

Exponential change is notthe domain of technologyonly.

Labour law is about to change the workplacelandscape, and disruptbusiness strategies and workforce models. Thisyear seeshuge amounts oflegislative changes that are going to affect thelabour market.

There areongoing negotiations at Nedlac in respect of labour relationsamendments and the BasicConditions of Employment Act.Although these maynot befinalised during the course of the year, they couldhave asignificant impact on the job market as well as the ability to absorb, create and retain jobs.

Dispute resolutionis getting out of hand

Thereisagrowingconsensus that dispute resolution is out oflinewith whatwasenvisaged bythe LabourRelations Act(LRA).Toomuchtimeand moneyis beingwastedin resolution of,for instance, dismissal disputes.

Employment opportunities and skills deficiencies

The NationalLabour Migration Policy,the Employment Equity AmendmentAct and need to be planned for. Sectorsthat aregoing tobe dramatically affectedare hospitality (including lodges, guesthouses and small hotels), restaurants and transport. This creates opportunities on the broadbased BEE (BBBEE) and employment equity fronts

The National Labour Migration Plan the platform determines the natureandextent ofworkas well as remunerating them. This will have cost and liability implications.

The National Labour MigrationPlan andtheaccompanying amendments to the Employment Services Act (ESA)will meanthatabout 1-million foreignnationals whodonothavecriticalskills or validwork permitswill be displaced.

The Employment Equity Act the scarceskills listshave huge consequences for all employers. For example, the 27,000 companies that submit employmentequity reports each year should reflect that there are more than a millionforeign nationals whomay bedisplaced andwhomaycreateemployment opportunities.

Thehuge skillsgapthat thisisgoingtocreatewillalso

This willcreate complex dynamicsthatemployerswill have todeal withsuch as conflict resolution, fair dismissal, skills-setreplacement and associated costs.

The ESA alsowill formalise the employment relationship created by digital platforms that provide work. Models such as Uber may now be designated as employers of their drivers if

The Employment Equity Act (EEA) willprobably bethe biggest-ticket item of all the amendments becauseit requires employers to achieve sub-race,sub-genderand disabilitytargetsby September 2028.

In manyinstances, this will mean thatthere is either under oroverrepresentation ofAfrican,Indian,colouredor white men orwomen as well as persons with disabilities. This willrequire designated employers consciously to plan across the entire human resources lifecycle recruitment, selection,training, promotions,retention

Consumer Bills

and career as well as succession planning.

Cannabis for Private Purposes Bill

There are the pending amendments to existing cannabislaws andtheintroduction ofthe newCannabis for Private Purposes Bill. Thisbillwilldefinewhatis considered to bea public place, andthe quantitiesof dry cannabis and cannabis plants that constitute private and personal use.

Substance workplace policies willhave toconsider the impact ofthis in relation to thestandards ofconduct set for employees.

Opportunities ahead

Notwithstanding theabove, thereare anumber ofopportunities for employers who are prepared tosee this dis- ruptionas anopportunityfor improvement andinnovation. For example, youth employment through Yes4Youth and the use of learnerships means that significant tax incentives and BBBEE advantages can be accessed.

Itallowsfor areviewof current workforcemodels andplanning aswell asthe acquisition of new skills sets. What is clear, however, is all organisations will require astrong foundationonwhich to address these challenges and opportunities. This foundationis tobuild deep trust relationships where employees trust the leadership and do not resist change.

Emotional intelligenceis a non-negotiablecapabilitythat willhaveto benurturedby managers and staff alike.