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South Africa’s employment laws and owning businesses – Part 1 of 2
Having spent a lot of time in seeing how other countries and successful countries work, I often think about our labour laws. Big foreign companies stopped investing in South Africa years ago and in a more frightening way many of the companies we consider South African are not really truly considered South African by people in other countries. De Beer’s, Anglo American and SAB all have their head office in London. Yes, they are listed on Johannesburg Stock Exchange also with a secondary listing and yes, they make most of their money in South Africa, but effectively they are British companies and they form part of the top 100 companies on the FTSE – the British Stock Exchange. We are still proud of them, but they are not actually South African from an international perspective at all – they are British.
I don’t think most Americans, who have heard of SAB, would ever have any idea that the SA stands for South Africa! The company is known as SAB and people don’t know it as South African Breweries and would be stunned to discover that a company that started in South Africa is such a major player all over the world owning major beer brands in numerous countries and not just the brands that are sold in South Africa.
In any event, I digress. I was having a conversation with one of my staff members recently who was explaining to me that she cannot help it that she is one of the staff who is sick the most often in the office and she basically referred to her 30 day sick leave, over a three year period, as an amount of leave she is “entitled to take”. In other words, she thinks it is normal to take 30 days sick leave over three years and to space it out nicely, as opposed to only taking sick leave when you are actually sick! Naturally people, who on the one hand criticise the ANC and their policies all the time, need to understand they are in fact embracing ANC policy. A policy that has not worked for the economy, a policy that frightens foreign companies away, but the truth is most people who have jobs are quite happy to embrace ANC policy when it suits them. At that point they don’t care that it helps cause a high unemployment rate, the poverty we have which indirectly affects the crime, etc. It does not mean anything to them and every time I write a blog like this I get somebody who has to criticise me – although if the people who wrote those comments read business newspapers they would read the same thoughts and criticisms I have, on a regular basis. Anyway, our economy is floundering and our labour laws are ridiculous. I do think that employees need more protection than employers. Employers at least, when things go right, make more money and that is why, when things go wrong, they are expected to take the loss themselves and suffer alone. Employees simply move on to other jobs at other companies and the person who risked his or her capital invariably goes bankrupt, has their house sold and their kids moved out of the private school, etc. That is business and that is a risk reward ratio that is involved in owning a business. More to come in my next blog….
Posted by Michael de Broglio on Wednesday 23-Aug-17
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Comments
Jolene said:
on Monday 04-Sep-17 12:02 PM
I have to agree with Daniella on this one, don’t blame the laws, rather blame the people who takes advantage of it. State employees can go on paid ‘sick’ leave for months and months without any problems.
Liesl said:
on Monday 04-Sep-17 08:42 AM
I think you will always have employees that take off more than others regardless of the law or rules of the given company/firm. Some employees will at all costs try to never take off and others not
Liz said:
on Monday 04-Sep-17 08:40 AM
The work ethic in South Africa is a joke compared to other successful countries, and the disheartening reality is that it will be extremely difficult to change as a result of the employment laws that people have been taking advantage of for so long. Greece would be a perfect example here, as a result of siesta times, early retirement and the fact that government employees have had some of the best worker benefits, the country went into a major financial crises which it is still fighting to recover from.
Ashleigh said:
on Friday 01-Sep-17 04:54 PM
A lot of laws are being abused amongst employers and employees and either one is never happy with something.
Zanell said:
on Tuesday 29-Aug-17 04:59 PM
I think everybody will have a different opinion when it comes to this. I think the biggest problem is that Employers feel abused but that is not always the occasion. There are many employees who get exploited everyday
patrick said:
on Tuesday 29-Aug-17 08:42 AM
I agree with you on Anc policies not stimulating Job creation. if you go to other jurisdictions, you can register a company in a day and in a matter of weeks you have boots on the ground. what we need is some sort of all purpose centre were you can do everything and apply for finance as well if they are happy with your business idea
Michelle said:
on Tuesday 29-Aug-17 07:46 AM
It’s quite interesting to hear about all the different laws of different countries, regarding leave. Personally I think that employees will never be completely happy how some of the leave rules work. And I can think that the employers also don't always agree with everything.
Angelique P said:
on Monday 28-Aug-17 07:07 AM
I think it's so difficult to have your own business. It's much more stress than just to work for a boss. My father has his own business and I can see how much stress he has each day. The employees just do what they want and at the end it's my dad that needs to work harder to finish the job.
Jadine E said:
on Monday 28-Aug-17 06:50 AM
South Africa's laws regarding employment are meant to strict because of so many taking advantage.
Joyce said:
on Friday 25-Aug-17 05:03 PM
South Africa’s employment laws sound harsh to businesses owners
Nicky said:
on Friday 25-Aug-17 05:02 PM
I agree with Jessica-I don't think that the labour laws cause unemployment and all the issues in SA-I think that the state of SA's government, corruption and politics contributes more to these issues than labour laws. If labour laws cause unemployment-does this then mean that employers would rather not employ people in SA than employ people and abide by labour laws?
Prishani said:
on Friday 25-Aug-17 04:47 PM
This is a good topic. Our employment laws are definitely different from other countries, and the workforce and work ethic all contribute to our economy. I don’t necessarily think our employment laws are very lenient. Sadly people just take advantage without understanding the consequences to the company and their employers.
Alexis said:
on Friday 25-Aug-17 08:39 AM
Regardless of what the country offers, it is not an entitlement - it is there for when one really needs it. You could be hit by a bus tomorrow and need all thirty of those days in one go and eventually have to go into your annual. All however do not have a choice in the matter of when they fall ill and how long it will take to get better.
We as people whom live in this country have no choice to say the least with regards to what has been given to us. And no, we are all not supporting the ANC - it is difficult to get them out, and even when that happens - that part of the Labour Law will not change.
It is the people whom take advantage that ruin it for all, always taking off for some reason, regardless of what it may be.....any excuse.
However, there are countries out there whom give a lot more than what South Africa gives, and these are countries where it would be worthwhile to live
Bianca R said:
on Friday 25-Aug-17 08:34 AM
I suppose each country has their legislation and it works for various countries, I know that in America there is no such thing as sick leave but on the other hand, if there is a public holiday, it gets moved to a Friday and it is always a long weekend holiday. Like Memorial day weekend, Independence day weekend etc. That being said, America is a 1st world country and probably for a reason, we are classed as a 3rd world country and I do believe that some laws are taken advantage of. I would not say that you can blame the law or legislation though.
Tamaryn said:
on Thursday 24-Aug-17 04:47 PM
I do think that less people will be unemployed if more employed people were more strictly managed and not given so much leeway in terms of the labour laws. In other words, if employers could act more strictly they probably would and there would be a position available to a candidate who is willing to take their job more seriously and to work hard. That individual would probably also do a better job which, taken across the board, would collectively assist to strengthen a failing economy. Personally I wouldn't mind if some employees at Home Affairs, SAPS and the like were replaced with people more willing to work.
Daniella said:
on Wednesday 23-Aug-17 05:00 PM
I personally think that our labour laws aren't to blame, its people that take advantage of it. but also at the end of the day every Country has their advantages and disadvantages.
Natasha said:
on Wednesday 23-Aug-17 04:51 PM
I agree with Angelique I think if you reduce sick leave people will actually take sick leave when they are really sick and think it will be better if Maternity leave was paid leave its not easy being on Maternity leave and you not getting paid .Its great to know that SAB is major beer brand all over the world I didn't know what SAB stands for its very interesting
Angelique Jurgens said:
on Wednesday 23-Aug-17 04:17 PM
That's unfortunately the country we live in. I am sure that where some countries are more strict on certain aspects they have perks in other aspects. Much of the policies as Jessica state are there for reasons due to apartheid etc. I can agree on some of the labour law however something else that bothers me a bit is maternity leave - perhaps reduce the sick leave but allow staff to have some paid maternity leave. I guess some people would abuse it while other people would never use it.
Lucretia said:
on Wednesday 23-Aug-17 03:02 PM
I understand that we have the leave we have, be it sick leave or annual leave, I do think though that some of the laws ought to change i.e not being able to get rid of someone for non-performance. To me, if you get paid to work, you SHOULD work. If you decide not to work, then your position should become available for someone who wants to work. Some of the laws have tied employers into contracts they don't want to be tied into and with the result, there is a lot of unemployed people out there who could have jobs if our labour laws were different. It's a vicious circle......
Lucretia said:
on Wednesday 23-Aug-17 03:01 PM
I understand that we have the leave we have, be it sick leave or annual leave, I do think though that some of the laws ought to change i.e not being able to get rid of someone for non-performance. To me, if you get paid to work, you SHOULD work. If you decide not to work, then your position should become available for someone who wants to work. Some of the laws have tied employers into contracts they don't want to be tied into and with the result, there is a lot of unemployed people out there who could have jobs if our labour laws were different. It's a vicious circle......
Jadine Richards said:
on Wednesday 23-Aug-17 01:40 PM
South African employees are very smart when they choose to be. My mom is a business owner and prides herself on her disciplined HR processes as she trains the youth for free and then gives them work experience and later assists them to become integrated into the work-place. She always laughs and tells me that when a trainee candidate comes in, they know nothing and are very humble. However, the minute she gives them a salaried position, then she notices how they suddenly can read the entire employment act to her as they no longer require the free assistance!
Jadine Richards said:
on Wednesday 23-Aug-17 01:39 PM
South African employees are very smart when they choose to be. My mom is a business owner and prides herself on her disciplined HR processes as she trains the youth for free and then gives them work experience and later assists them to become integrated into the work-place. She always laughs and tells me that when a trainee candidate comes in, they know nothing and are very humble. However, the minute she gives them a salaried position, then she notices how they suddenly can read the entire employment act to her as they no longer require the free assistance!
Clare said:
on Wednesday 23-Aug-17 08:13 AM
This is such a worry for people that have kids because you know if you are battling now what do you think our children are going to do, it is easy to say yes let them study make them do great in there schooling ect.. But I know so many people that have degrees and qualifications that are sitting at home because they cant find a Job. I have a Friend that is an accountant study ect and she is a receptionist now.. and what makes it worse is that every year we get more and more kids leaving matric.
Jessica Apfel said:
on Wednesday 23-Aug-17 08:01 AM
I am not sure that I can agree with the fact that our under performing economy is associated with our labour laws. As a country with a history of discrimination and irregularties it is only obvious that we have the labour laws that we have - we need to be ensured protection and remedy from unlawfulness! Our floundering economy is because of political unrest, high unemployment rates etc.
Johannesburg based attorney specializing in personal injury matters including Road Accident Fund claims and medical negligence matters. My interests include golf, reading and the internet and the way it is constantly developing. I have a passion for life and a desire for less stress!