BUSINESS EDGE OCTOBER 2024
This communication highlights the latest statutory amendments and ancillary developments relevant to the SERR Synergy legal compliance products and services.
- BROAD-BASED BLACK ECONOMIC EMPOWERMENT
- OCCUPATIONAL HEALTH AND SAFETY COMPLIANCE
Property Sector
The Property Practitioners Regulatory Authority (“PPRA”), on 13 August 2024, provided the Real Estate Business Owners of South Africa (“REBOSA”) Board with written confirmation concerning the Broad-Based Black Economic Empowerment (“B-BBEE”) requirements and issuance of Fidelity Fund Certificates. The PPRA clarified that the term ‘valid’ in the context of BEE certificates does not imply ‘compliant’ and that industry participants are merely required to submit BEE certificates that are valid.
In a media statement, REBOSA contends that “agencies with a turnover of more than R2.5 million per annum can obtain a ‘valid’ BEE certificate from a registered SANAS verification agency without having to meet the minimum 40 points (BEE Level 8) on the scorecard”.
Agencies can therefore obtain a Level 9 Non-Compliant valid BEE certificate to qualify for the issuing of a Fidelity Fund Certificate.
Legal Sector Code
The Minister of Trade, Industry and Competition, in Government Gazette No. 51271 dated 20 September 2024, published the B-BBEE Legal Sector Code of Good Practice in terms of section 9(1) of the Broad-Based Black Economic Empowerment Act, 2003 (Act No. 53 of 2003 as amended by Act No. 46 of 2013)
(“the B-BBEE Act”).
The Minister states that the Legal Sector Code (“LSC”) shall come into effect on 20 September 2024; however, all B-BBEE verification certificates legally issued prior to the publication of this LSC in terms of the Generic Codes, shall remain valid and applicable for the period of their validity, notwithstanding the implementation date specified in the Government Gazette.
In such an event, the relevant Legal Sector Measured Entity (“LSME”) shall be required to apply for the relevant B-BBEE verification certificate under this LSC upon expiry of the B-BBEE verification certificate which was issued in terms of the Generic Codes. LSMEs that had not been measured for B-BBEE compliance prior to the publication of this LSC, shall be measured in terms of this LSC with effect from the date of publication.
We have also published an article for ease of reference: The New Legal Sector B-BBEE Codes: Transforming the Legal Landscape.
Registering a Major B-BBEE Transaction
The Broad-Based Black Economic Empowerment Commission (“the Commission”) published its first Explanatory Notice in August 2024, providing guidance to parties / entities on the documentation and timelines for processing and registering a Major B-BBEE Transaction with the Commission.
The Notice describes a Major B-BBEE Transaction as any transaction as per Code Series 100 (including Statement 102), the value of which equals or exceeds twenty-five million rands (R25 million). The threshold value is based on the value of the transaction excluding administration, professional and legal fees. For Statement 102, the value of the transaction means the value of the sale of asset / business / equity instrument.
The B-BBEE Act requires the Commission to maintain a registry of Major B-BBEE transactions. The Commission therefore indicated that such registry would allow for the monitoring of B-BBEE ownership compliance, levels of transformation and the extent to which benefits of Major B-BBEE transactions flow to the black persons who are part of these deals, in compliance with the objectives of the B-BBEE Act.
Compensation for Occupational Injuries and Diseases Act, 1993 (Act No. 130 of 1993) (COIDA)
• The Regulations on Irritant-Induced Asthma for the Compensation Fund (Irritant-Induced Regulations) and the Regulations on Work-Aggravated Asthma for the Compensation Fund (Work-Aggravated Asthma Regulations) were published and promulgated on 7 June 2024.
• The Minister of Employment and Labour amended Schedule 4 of COIDA relating to the manner in which compensation for accidents that occur as from 1 April 2024 as well as occupational diseases diagnosed as from 1 April 2024, is calculated. The minimum and maximum amounts payable are set out in Government Gazette No. 50909 dated 5 July 2024 and will be implemented as from 1 April 2024.
Hazardous Substances Act, 1973 (Act No. 15 of 1973)
• The Minister of Health declared leaded paint or coating material as a Group II hazardous substance. The Notice, which comes into operation one year after the date of the final publication, applies to all paints and coating materials.
Occupational Health and Safety Act, 1993 (Act No. 85 of 1993)
• The Minister of Employment and Labour, in Government Gazette No. 50930 dated 12 July 2024, amended Regulation 24 of the Asbestos Abatement Regulations, 2020 regarding ‘prohibitions’, by inserting the underlined wording:
No person may--
(f) use electrical power tools, such as angle grinders, or any other fast-moving equipment to cut, grind or drill asbestos-containing material; provided that slow moving tools may only be used where the activity is part of asbestos containing material removal for final disposal;
[…]
(j) make any installation or fitting on or onto asbestos containing materials.
Labour Relations Act, 1995 (Act No. 66 of 1995)
The following registration and name change were announced by the Department of Employment and Labour:
- The National Alliance of Workers Union was registered as a trade union with effect from 19 August 2024.
- The Werkgewersorganisasie vir die Graanbedryf changed its name to the Employers’ Organisation for the Agri Industry of South Africa, with effect from 31 July 2024.
The Department of Employment and Labour cancelled the registration of a Bargaining Council and multiple Trade Unions during the months of August and September 2024.The cancellation entails that the Council and Organisations are removed from the register of Councils and/or register of Trade Unions:
- The registration of the Bargaining Council for the Furniture Manufacturing Industry of the Eastern Cape was cancelled with effect from 20 August 2024.
- The registration of the Permanent and Insourcing Contract Workers Union was cancelled with effect from 4 September 2024.
- The registration of the United Private Sector Workers Union was cancelled with effect from 4 September 2024.
- The registration of the South African Furniture and Allied Workers Union was cancelled with effect from 4 September 2024.
- The registration of the South African Horseracing and Allied Workers Union was cancelled with effect from 10 September 2024.
- The registration of the Voice of Health Workers Union was cancelled with effect from 15 August 2024.
- The registration of the National Associated Municipal Trade Union was cancelled with effect from 6 August 2024.
- The registration of the Noordelike Bouwerkersvakbond was cancelled with effect from 11 September 2024.
Listed below are the Bargaining Council Collective Agreements that have been extended to Non-Parties and/or the extended operation period of specific Collective Agreements:
- The operation period of the Main Collective Agreement of the Bargaining Council for the Fishing Industry has been extended to Non-Parties until 31 December 2026.
- The Main Collective Amending Agreement of the National Bargaining Council for the Road Freight and Logistics Industry has been extended to Non-Parties with effect from 1 March 2025 until 28 February 2027 and the operation period of the Main Collective Agreement has been extended to 28 February 2027.
- The operation period of the Agency Shop Fee Collective Agreement of the Bargaining Council for the Furniture Manufacturing Industry KwaZulu-Natal has been extended to 10 October 2025.
- The operation period of the Collective Bargaining Fee Collective Agreement of the Furniture Bargaining Council has been extended to 30 April 2025.
- The Main Collective Agreement of the South African Road Passenger Bargaining Council has been extended to Non-Parties with effect from the second Monday after the date of publication of the relevant Notice until 31 March 2026 or until replaced by a subsequent agreement.
- The Main Collective Agreement of the Bargaining Council for the Meat Trade Gauteng has been extended to Non-Parties with effect from the second Monday after the date of publication of the relevant Notice until 30 June 2026.
- The Main Collective Agreement of the Bargaining Council for the Restaurant, Catering and Allied Trades has been extended to Non-Parties with effect from the second Monday after the date of publication of the relevant Notice until 31 May 2028.
The extension to Non-Parties of the various Bargaining Councils’ Main Collective Agreements means that other employers and employees working in the same or a similar industry are also bound by the provisions of the applicable Collective Agreement until the date specified in the Government Gazette.
In other Bargaining Council news, the Motor Industry Bargaining Council (MIBCO) published a circular dated 26 August 2024 announcing the 2024/2025 Prescribed Increases and Minimum Wage for Sector 5, forecourt attendants, cashiers and chars. In addition, a MIBCO circular dated 15 July 2024 informed and reminded all participants in the Motor Industry of the new minimum wage rates, guaranteed wage increases, and related information published in Government Gazette No. 48340 of 31 March 2023. The circular confirms that the wage rates will be effective from 1 September 2024 until 31 August 2025.
For ease of reference, please find below a summary with links to our recently published blogs
- Understanding Employment Equity barriers and Affirmative Action measures in South Africa
- Empowering women in the workplace: Health and Safety considerations
- Compensation Fund: What Every Employer of Domestic Workers Needs to Know!
- Drafting Employment Equity Plans: Guidelines for your business
- Legislative requirements for the use of Hazardous Chemical Agents
- Understanding the Consumer Price Index (CPI)
- Incarceration and Employment: A Case Study in South African Labour Law
- How to Monitor the Implementation of Employment Equity in your Workplace
- Promotion of Access to Information Act - Handling Requests and Reporting for Public and Private Bodies
- Understanding the Importance of Employment Equity Reporting and Audits
- Sharing Valuable Insights into the Relationship Between Share Option Holders and Shareholders
We are committed to providing our clients with the best service at all times and to investigate all possible avenues to improve our service offering to clients to accommodate their individual needs. Please e-mail any suggestions to communications@serr.co.za.
Compiled by:
SERR Synergy Research Division
L. Boshoff – research@serr.co.za