HR 101 – What to do When . . . You Want To Dismiss Staff - Part 2?

 HR 101 – What to do When . . . You Want To Dismiss Staff - Part 2?

By Nikki Viljoen – Viljoen Consulting (Pty) Ltd.

Please note that this pertains to South African Labour Relations and Best Practice requirements.

So here we are again – let’s look at what is considered an ‘unfair’ dismissal.

• any dismissal that is not done for a fair reason (like you just don’t like the person) is considered ‘unfair’.

• any dismissal that takes place without the proper and fair procedure, irrespective of whether it is in accordance with any notice period in a contract of employment or in legislation governing employment.  So this means that you cannot just come to work one day and decide that George has to go because he is irritating the hell out of you, so you give him a month’s notice as per his Letter of Appointment and in compliance with legislation – I mean you did give him a month’s notice so what is the problem?  Right? . . .  Wrong!

Each time you dismiss someone, please understand that in order for you to ascertain whether it is fair or not is always determined by the facts of the case and whether dismissal is appropriate or not as a penalty.  

I would also like to add here that it is also determined by precedents that have been set in previous cases.  Let me explain.  If two years ago one of your employees (let’s call him Philip) was caught stealing say R100.00 out of the till and Philip managed to convince everyone at his disciplinary, that he had ‘borrowed’ the money for taxi fare and that he intended to pay it back the following day and you gave him a ‘Final Written Warning’ in consequence of his actions and now George is caught stealing say R100.00 out of the till and George now also says that he ‘borrowed’ the money for taxi fare and that he intended to pay the money back the next day, but you are fed up with George because his attitude is bad, so you dismiss him – this would be construed as ‘unfair’ dismissal because you did not dismiss Philip for the same offense, two years ago.  So be careful when dishing out punishments for first-time offenses – they may just come back and bite you on the rear end in the future!

You still have to follow the correct procedure and whether the procedure is fair or not is determined by, but not limited to, the following guidelines.

There are three grounds, by which ‘dismissal’ is considered fair and legitimate, by the Act.

These are:

• the conduct of the employee (which is why it is of critical importance to have a documented ‘Code of Conduct’ for your Company)

• the capacity of the employee and

• the operational requirements of the employer’s business.

The Act says that a dismissal is automatically unfair if the reason for the dismissal is:

• anything that is an infringement of the basic rights of employees and/or trade unions or

• if the reason is one of those that are listed in section 187.

These reasons include, but are not limited to:

• if the employee participates in a lawful strike

• if the employee intends to become or is pregnant

• any acts of discrimination against the employee.

Where the dismissal is not automatically unfair, the employer has to show what the reason for the dismissal is because the employee’s conduct was in question or that the employee’s capacity was in question or it is based on the employee’s failure to meet the operational requirements of the employer’s business.  

If you, as the employer cannot show this or if you cannot prove that the dismissal was performed within the parameters of fair procedure, then the dismissal will be deemed as unfair.

In essence, you have to make very sure that you have all your ducks in a row and that you can substantiate and prove anything that needs to be proved in this respect.

Next week we will look at the Disciplinary Procedures prior to dismissal.

Nikki is an Internal Auditor and Business Administration Specialist who can be contacted on 083 702 8849 or nikki@viljoenconsulting.co.za or www.viljoenconsulting.co.za 

Blogging 101 – The Content – Part 3

 Blogging 101 – The Content – Part 3

By Nikki Viljoen – Viljoen Consulting (Pty) Ltd 

So by now, I am sure that you have gathered that as passionate as I am about my business, so am I passionate about blogging, and when I blog, not only do I learn for myself, but I also share what I have learned.

Most of us have heard the words that “knowledge is power” – I’d like to say that knowledge is exactly that – plain, unsophisticated, understated . . .  well knowledge.  The “Power” of the knowledge is in how we use it and what we do with that knowledge and by sharing that knowledge with others who will use it, we enable, not only ourselves but those around us too.  How cool is that!

The sharing of knowledge shouldn’t just be a ‘here and now’ experience either – so make sure that you create ‘archives’ which allow people to go back, time and time again, to refresh their memories about the issues that you have written about or to savor their favorite posts.  It will also assist with reading articles (in one sitting), that have perhaps been broken up into parts so that it is easily readable.

Another idea, in order to assist with your archives, is to break up the content of the articles into sections, pretty much like I have for the blogs on my website. So each time I introduce a new topic (pretty much like I did when I introduced “blogging” as a topic), I add a new content section to my blog index.

Now, to get people interacting with you, it’s also necessary to tell people ‘about’ yourself.  People like to hear stories, especially stories about where you come from and what it is that you have done in order to get to where you are.  It allows them to relate to you in a completely different way.  Put a photo of yourself onto your blog – it gives people a sense of communicating directly with you.

Make sure that you have a section that gives people direct access to you.  Have a contacts page with, at the very least, your e-mail address.  If you are not comfortable about being contacted at all hours of the day and night by people who live on the other side of the planet, or who are in different time zones, don’t include your telephone number.  Many people like to clarify issues or perhaps add to the discussion or even provide alternative information.  So allow yourself to be accessible, even if it is only up to a point.

Be willing to share, not only your thoughts and your information and knowledge but also your blog too.  Invite guests to ‘blog’ on your site.  If you feel like you are giving up control, then choose the topic yourself and reserve the right to edit what they have written.

See you next time, when we will look at some more issues around some of the content that should be on/in your blogs.

Nikki is an Internal Auditor and Business Administration Specialist who can be contacted on 083 702 8849 or nikki@viljoenconsulting.co.za or http://www.viljoenconsulting.co.za 

Leadership 101 - The Role and Responsibility of Directors

 Leadership 101 - The Role and Responsibility of Directors – Part 14

By Nikki Viljoen – Viljoen Consulting (Pty) Ltd 

Please note that this pertains to South African Legislation, the King Requirements, and Best Practice.

None of us start our businesses with the intention to fail.

We all start with stars in our eyes and a dream in our hearts, but unfortunately sometimes, no matter how much we plan and implement, things go wrong and we find ourselves in the smelly brown stuff, with huge debts and very little income, if any at all.

This is the time when we have to face the music and if we do it fast enough, we may even find ourselves in a successful Business Rescue situation.

Please understand that it will probably be one of the most difficult things that you will have to do – no one likes to admit that they have failed no matter what the reason, but if the Board and in particular the Directors understand how important it is to act, not only independently, but more importantly, to act quickly and decisively in line with the obligations and regulations of Chapter 6 of the Companies Act, which deals with Companies that are in a distressed trading situation, there may be light at the end of the tunnel.

Early intervention will protect the Company from exposure to reckless trading allegations and also demonstrates the Boards fulfillment of its obligations to all the stakeholders.

To act proactively, the Board must explore all the turnaround opportunities before recognizing that Business Rescue proceedings and taking decisions around the commencement and action thereof, offer a final and formal consideration, but only after all other avenues have been thoroughly researched and investigated.

So what are the key questions that Directors should be asking?

1. First and foremost, of course, is to establish if there are any signs that Business Rescue would be on the cards in the future.  If there is a possibility that there could be for whatever reason, this could be averted if we act sooner or even ask for assistance to turn the situation around.

2. Is the Company financially distressed? Clearly, it is of paramount importance to ensure that the books are done regularly and that the results are not spurious in nature, but that they accurately represent the financial position of the company.

3. Is there a reasonable possibility that the Company could be rescued and would the Company be able to recover? Is there future business in the pipeline that would be sufficient to ensure a healthy and sustainable inflow of income?  Have the expenses be pared back to the bare minimum and now properly controlled to ensure that there is no undue wastage.  Have proper procedures and controls been implemented to ensure that production is optimal and that theft and pilferage are contained?

4. Is the Company trading recklessly? Is there sufficient income to meet the expenses?  If there isn’t, then you may be trading recklessly.  Are there policies and procedures in place and are these monitored to ensure that production is optimal and that processes are adhered to minimize loss and prevent theft, fraud, and pilferage.  If there aren’t, then you may be trading recklessly. Are expenses kept to a minimum?  If not then you may very well be trading recklessly.

5. Should the Company be placed under Business Rescue and if so should the process be started immediately? This is a decision that needs to be taken at the board level.  It is therefore extremely important to call for an urgent board meeting if there is a need.  The requirement here is to act quickly and decisively.

6. Which Business Rescue Practitioner should be appointed. Please do proper research here as that there are (as in all professions), some really dodgy practitioners out there?

7. Is the Business Rescue Practitioner that you are about to appoint, sufficiently experienced and sufficiently independent to actually rescue the business? Ask the difficult questions and get some references and authenticate them.

8. What are the Board’s obligations to the stakeholders, the courts, and the appointed representatives?

9. Are we fulfilling our obligations as a Board as well as individual Directors, in line with laid down procedures of the Business Rescue proceedings?

Remember that Business Rescue is there to assist . . .  but obviously if the Company is too far gone, it may be impossible to revive it.  So it is of the utmost importance to take action sooner rather than later.

Next time we will have a look at Alternative Dispute Resolution.

Nikki is an Internal Auditor and Business Administration Specialist who can be contacted on 083 702 8849 or nikki@viljoenconsulting.co.za or http://www.viljoenconsulting.co.za 

Business Tips – Unhealthy Politics

 Business Tips – Unhealthy Politics

By Nikki Viljoen – Viljoen Consulting (Pty) Ltd 

Dr. Renate Volpe, in her Political Intelligence (PQ) Nuggets, says “Unhealthy Politics: Reduce Performance, Stifle innovation and learning, Increase labour turnover, Decrease motivation, Distort communication, Decrease morale and Undermine effective decision making.”

One of the first things that I learned when I joined the Corporate world was that there was politics.  Politics from the top to the bottom.  Within the directors of the company – one siding against the other, within senior management – directors playing one manager against the other, middle management – staff playing one supervisor against the other and even right at the bottom of the food chain where employees vie for attention.  Everyone grappling for what they perceive as a ‘piece of the pie’! Crazy, scary stuff!

Often the staff, in a particular department would stop working, not because they were on strike, and not because they didn’t have anything to do, but usually because they were watching the managers as they ‘strutted’ their stuff in front of their superiors.  They watched the ‘posing’ and brownie point posturing.  The body language insults and often even the verbal challenges that their managers made to each other as they ‘threw down the gauntlet’ in an effort to get noticed, by what they perceived, were the people who held their careers in the palms of their hands.

I watched, as many of the Managers struggled with keeping their thoughts to themselves, at meetings where we brainstormed for ideas for special projects.  Their eyes telling the story of how much they wanted to join in but didn’t for fear that their ‘chosen’ guru or the person that they thought that they had formed an alliance with, might think less of them or who had already put an idea forward.

I watched as a steady stream of talented, skilled individuals headed for the door and left the company.  People who should have been nurtured and who really could have made an enormous difference in the company but who would rather leave than take on the office politics.

What I also learned though was that it was possible to separate myself from the political animals around the office water-cooler.  I made sure that I did not participate and thankfully due to the nature of my position I was able to keep my distance when the ‘ugly’ side of politics raised its nasty head.

So, if you are going to allow the political animal into your working environment (and it’s not always a bad idea) make sure that it is of the good kind and that you keep it healthy and working for the good of the company.

Nikki is an Internal Auditor and Business Administration Specialist who can be contacted on 083 702 8849 or nikki@viljoenconsulting.co.za or http://www.viljoenconsulting.co.za 

Inspiration – Let Life Begin

 Inspiration – Let Life Begin

By Nikki Viljoen of Viljoen Consulting (Pty) Ltd

Today’s quote comes from Grace Hansen, who says “Don’t be afraid your life will end; be afraid that it will never begin.”

That surely brought a smile to my face, when I think about all the millions and billions of currency that have been spent to keep us young, take away the wrinkles, and stop the aging process.  Imagine if you will if that money had been spent on ensuring that life was lived?

I am often amused at the idle conversation at a dinner party – where the discussion is usually centered around who has had what work done.  Quite frankly I can’t see the attraction, but then I guess I have more important things to think about, like the content of the next article or how I am going to assist a client with getting BEE compliant or assist them with getting the most benefit out of being a VAT vendor. 

Perhaps that is because I have gotten to that place in my life where it’s not the “what I look like” that is important, but rather “who I have become” and what I want to achieve that takes precedence.  

I have made peace with my bulging midriff, and my breasts that have lost the battle to gravity, and my ‘crock’ knee that was abused during my youth when I played a lot of sport.  So what if I can’t (or perhaps won’t even attempt) to run the four-minute mile, or that I have grey streaks in my hair or that I have laughter lines around my eyes – they are all earned and deserved!

Rather think about the battles that I have fought and won!  Things like making a difference in the lives of individuals, playing it forward, and giving back.  Think about the journey that I have taken where I have grown as an individual and a person (yes and around the midriff too).  Think about the person who has challenged the universe and come out the other end – positive and with a purpose in life.

So before life passes you by, and believe me it will – think about doing something worthwhile with it rather than running around frenetically looking for ways to prolong it.  No matter how much you stretch it, if you do nothing with it, nothing will have been gained.

Nikki is an Internal Auditor and Business Administration Specialist who can be contacted on 083 702 8849 or nikki@viljoenconsulting.co.za or www.viljoenconsulting.co.za 

HR 101 – What to do When . . . You Want To Dismiss Staff? Part 1

 HR 101 – What to do When . . . You Want To Dismiss Staff? Part 1

By Nikki Viljoen – Viljoen Consulting (Pty) Ltd.

Please note that this pertains to South African Labour Relations and Best Practice requirements.

More and more I am getting questions around “when can we dismiss a staff member” or indeed “when should I dismiss a staff member”. 

There are a host of reasons for dismissing staff, the question though is whether it will be seen as ‘fair’ or ‘unfair’ dismissal.  When faced with a dismissal that is either ‘unfair’ or even borderline ‘unfair’, you can be sure that you might just end up at the CCMA and that brings on a whole different world.

So here are some pointers of what can and cannot be done – please be advised that these are ‘some’ pointers – certainly, not everything will be covered, and always ask advice from a Labour Attorney should you be confused.

There is a ‘Code of Good Practice’ available on the Department of Labour’s website and whilst this deals with some of the key issues around dismissals, specifically those related to an employee’s conduct or their capacity to do a particular function, it remains general.  In other words, each case is usually quite unique and there are some instances where the issues of “what took place” are completely outside of what is considered ‘the norm’ in the “Code of Good Practice’.  This may include but not be limited to circumstances such as the number of employees and so on and therefore a different approach would be needed to resolve these issues.

For the record, the “Code of Good Practice’ was established as a guideline and it was not intended to be substituted for disciplinary or grievance procedures.  These procedures still need to be followed correctly.

For the ‘Code of Good Practice’ to be effective, both employees and employers should treat one another with respect.  The spirit of the Code is for both parties to have a ‘win/win’ experience.  The employer must be able to operate their business effectively and the employee must be able to work in a safe and efficient environment.

The whole purpose of the ‘Code’ is for employees to be protected against frivolous actions on the part of the employer, however, that said the employer is also entitled to satisfactory work performance as well as acceptable conduct from their employees.

Next week we will look at some of the ‘fair’ and ‘unfair’ reasons for dismissal.

Nikki is an Internal Auditor and Business Administration Specialist who can be contacted on 083 702 8849 or nikki@viljoenconsulting.co.za or http://www.viljoenconsulting.co.za 

Blogging 101 – The Content – Part 2

 Blogging 101 – The Content – Part 2

By Nikki Viljoen – Viljoen Consulting (Pty) Ltd 

Many of us are ‘visual’ beings – I know that I am because of the constant ‘videos’ that play themselves in my brain.  Brighten your blogs up with pictures that are relevant to whatever it is that you are writing about.  The visuals will add depth to your article and enrich your post.

It’s also a good idea to visit other blog sites.  It will give you an opportunity to have a look at different styles of writing and different layouts.  You will be able to see what works and what doesn’t and take what works together with your own style and make something uniquely different.

To get readers to ‘follow you’ make sure that it is easy for them to do so, either with an RSS feed application or at the very least set it up so that an automated e-mail is sent to them containing each post.  If they don’t have to go and ‘look’ for it all the time, chances are that they will read your blogs more often.

Encourage your readers to leave a comment or engage in a discussion or even a debate.  It makes people feel that they are all part of the process and part of a community and if it’s one thing that I have learned watching the celebrity survivor, it’s that people need to ‘feel’ that they are a part of something.

Challenge people and get them to challenge themselves.  When an article gets people thinking about who they are, what they are doing etc, they will return time and time again to see what there is that may be of interest.  Get them thinking and talking.

Don’t forget to give due, where and when it is deserved.  If you are quoting someone or using any part of their work, give them the appropriate credits.  I know how I feel when I see that someone has used my pontifications and they have not credited me.

Don’t jump on the bandwagon, just to promote your own stuff.  One of my personal pet hates is when people respond to one of my articles by plugging their own products.  That’s just rude and they should start their own blogs if they feel that strongly about it.

See you next time!

Nikki is an Internal Auditor and Business Administration Specialist who can be contacted on 083 702 8849 or nikki@viljoenconsulting.co.za or http://www.viljoenconsulting.co.za 

Leadership 101 - The Role and Responsibility of Directors – Part 13

 Leadership 101 - The Role and Responsibility of Directors – Part 13

By Nikki Viljoen – Viljoen Consulting (Pty) Ltd 

Please note that this pertains to South African Legislation, the King Requirements, and Best Practice.

The topic on the table today is Integrated Reporting and Disclosure.

So what is this and where does it come from?

The Integrated Reporting and Disclosure is a King III requirement and it deals with the integration of the financial information with any other company information for disclosure purposes. 

It has three principles and these are: -

1. That it is the responsibility of the Board to “ensure the integrity” of the final integrated report.

2. The financial reports should be “integrated” with the Company’s “sustainability reporting and disclosure.” 

3. That it is important to have the sustainability and disclosure “independently assured.”

How is the report made up?

The Integrated Report needs the following:-

- It needs to be published on an annual basis.  This means it should be prepared and then the publication released after the Company’s Year-End results are finalized. 

- It needs to be made up of “substance over form” and should not just be a ‘copy and paste’ type exercise.

- It should be “complete, timely, relevant, accurate and accessible and comparable with past performances of the company.” Ideally, it should be compared with the previous years' performance, to evidence both improvement as well as decreases, and where applicable and appropriate to several previous years in order to highlight growth patterns.

- It should also contain ‘forward-looking information.’ This should include current plans based on trends as well as plans for the future in terms of diversification. 

- It should be used to ‘document the company’s performance with respect to economic, social and environmental issues.’ 

- King III states that it should ‘reflect the choices made in the strategic decisions adopted by the Board in the context in terms of ‘economic, social and environmental issues.’ This just means that the reason those particular choices were made and what you hope to achieve.

- It should include the company’s ‘operations and plans to improve the positives and address the negatives.’

- It should describe how the company made its’ money. Highlighting the ‘best sellers’ in terms of product or service and their values should be documented here.

- In terms of the Annual Financial Statements, the report should include whether the company will continue to be "a going concern" in the financial year ahead.’

- If there are any concerns about whether the company can continue to trade as a going concern in the new financial year, then the plans that have to be implemented in order to address this must be tabled.

- Sustainability of the company is of the utmost importance and any issues around this should be reported honestly and openly.

So what are the key questions that the Directors should be asking?

1. In view of the fact that ‘sustainability” is of the utmost importance, the leading question should be whether the Company has a Sustainability strategy and policy in place?

2. Obviously whether sustainability is considered part of the ongoing business activities should be discussed,  agreed upon, and documented.

3. “Are sustainable development issues integrated into the business management systems and departments, such as (but not limited to) risk, environment, legal and financial.”

4. Has any of the sustainability principles been built into all of the individual performance agreements?

5. Does the company have suitably qualified Directors and executives who will have the responsibility for the company’s sustainable development?

6. Is there someone in the company that can be the custodian of the content as well as the integrated report?

7. Do we have to follow the GRI G3/G4 (Global Reporting Initiative) guidelines? If it is a requirement then this should be recorded as well as what steps need to be taken to ensure that the information is recorded in compliance with the GRI.

Obviously, if you are an SMME or even a middle of the market type company, this would seem like overkill.  That said large Corporate and Listed companies certainly would need to have this discussion at the Board level at the very least and certainly more than once a year.

Next time we will have a look at Business Rescue and the important role that this plays within any size business.

Nikki is an Internal Auditor and Business Administration Specialist who can be contacted on 083 702 8849 or nikki@viljoenconsulting.co.za or http://www.viljoenconsulting.co.za 

Business Tips – The Consumer Protection Act

 Business Tips – The Consumer Protection Act 

By Nikki Viljoen of Viljoen Consulting (Pty) Ltd – November 2011

There’s a lot being said about the Consumer Protection Act that came into effect at the beginning of April 2011 and like so many of the acts that we are seeing being introduced of late, there are some good things and some potentially bad things.

I am particularly excited about the clause that deals specifically, with fixed-term contracts.  Finally, we Joe Public will get a little relief from some of the wolves that abound. 

I have no doubt that we have all been caught by the contract that we sign, originally for one year and then we have about a nano-second to advise them in writing, that we no longer want to continue with the contract, before it rolls over again and we are locked in for another year. You know the ‘renewable’ contracts, like the gym memberships or the cell phone contract, or what about the newspaper or magazine subscription?  Yeah – those ones. Well apparently, since the end of March 2011, not only will these clauses have very little effect but we, as consumers, will also be able to cancel any fixed term agreement prematurely!  Now that’s fantastic news. Sure there is a procedure that will need to be followed but the fact of the matter is it can be cancelled and that is what is important.

The Consumer Protection Act will allow the consumer to cancel the fixed term contract at any time as long as the consumer gives the supplier 20 (yes twenty) business days notice. The notice has to be in writing or alternatively “in any recorded manner” (beware of the institutions who say that they are recording you for whatever reason – rather make sure and have your own recording). To be fair, the supplier also is not left without any recourse.  The supplier ‘may impose a reasonable cancellation penalty for any goods, services, or discounts that were supplied to the consumer on the assumption that the agreement would continue for the proposed fixed term” according to Roy Bregman of Bregman attorneys.

Oh – and of course, if the consumer stills owe the supplier any money up to and including the period that the contract was terminated – that still needs to be paid, so don’t be thinking that you can just cancel the contract because you are behind in your payments – you will still be liable for those. 

That said, if the consumer did not receive discounts or goods or services that the supplier can claim for, the supplier would be hard-pressed to find ‘reasonable’ cause to implement the penalty.  I like Roy’s example of this so I am going to use it (thank you, Roy).  If you have signed up for two years worth of dance lessons, you are paid up to date and you did not receive any discounts and you cancel the contract 18 months into the deal, the supplier, in this case, would find it very difficult to substantiate a reasonable penalty for early cancellation. 

Sure a ‘rolling’ type contract would continue and not come to a dead halt.  That would not be good at all if you say had that kind of contract with your internet provider and then suddenly one Sunday morning, you have no internet coverage because your contract expired on Saturday night at midnight.  From what I understand, these types of contracts “would automatically continue on a month to month basis, unless the consumer expressly directs the supplier to cancel the agreement on the expiry date or agrees to a renewal of the agreement for a further fixed term” writes Roy. In the event that a contract carries this clause, the supplier would have to notify the customer about the contract that is about to expire. 

The customer would need to be notified, of this during a period of between 40 and 80 business days prior to the existing contract’s expiry date and any changes to the contract should also be notified at that time.  If the notification does not take place the contract would automatically be renewed but would continue on a month-to-month basis. Obviously, once the contract is in the ‘month-by-month’ category, either the customer or the supplier would be able to terminate the contract by giving a month’s notice. 

The bottom line, of course, is that it is up to the consumer to READ the contract before signing it.  Sure it is up to the supplier to be transparent and upfront with what their expectations are, but consumers also need to take responsibility for their actions. In conclusion – don’t sign anything that you haven’t read and that you don’t fully understand.

Nikki is an Internal Auditor and Business Administration Specialist who can be contacted on 083 702 8849 or nikki@viljoenconsulting.co.za or http://www.viljoenconsulting.co.za 

Inspiration – Keeping Young

 

Inspiration – Keeping Young

By Nikki Viljoen of Viljoen Consulting (Pty) Ltd

The quote today comes from Henry Ford, who says:

“Anyone who stops learning is old, whether at 20 or 80. Anyone who keeps learning stays young.   The greatest thing in life is to keep your mind young.” 

One of my greatest challenges, at the moment, is to remember that I am now in my 60s!  When I think of myself it’s not as an “old” person (not that I am saying that the 60s is old!), but I can still remember very clearly as a teenager, working out how old I would be at the turn of the century and thinking I would be ancient!  

Many of my friends think that is time that I ‘grew up’ and started acting ‘age-appropriate’ and my standard response to that one is “what for?”

I am very young at heart and am proud to say that I can still party and out party many much younger than I am, (I suspect that being an insomniac has something to do with that though).  For me, life is for the living and I intend to live it to the full.

Too often, I see people who are bent and buckled by the responsibilities and weight of issues that they carry around with them.  They sag under a heavy load of self-inflicted issues or even other people’s responsibilities and be-moan their lot at every opportunity and to everybody who will listen.  They become ‘old’ before their time and simply exist from day to day as they wait for their time to end.  For them, life is about paying their dues.  I could no more live like this than I could chew off my own arm!

I’m not saying that life is a joke or one continuous party!  What I am saying though is that we have all been given an incredible opportunity to live an average of fourscore and ten years, and once lived we can not go back and change it.  

Each day is a brand new opportunity and we can either take up the challenge or lose that opportunity.

So why not make this the greatest opportunity that we will ever have and live life to the fullest?  Take up the challenge!  Make a difference in the world! 

Go on – I dare you!

Nikki is an Internal Auditor and Business Administration Specialist who can be contacted on 083 702 8849 or nikki@viljoenconsulting.co.za or www.viljoenconsulting.co.za 

HR 101 – What to do when . . . . You Want To Retire Staff?

 HR 101 – What to do when . . . . You Want To Retire Staff?

By Nikki Viljoen – Viljoen Consulting (Pty) Ltd.

Please note that this pertains to South Africa Labour Relations & Best Practice requirements.

The Basic Conditions of Employment Act (BCEA) stipulates that each employment contract should stipulate the age of retirement.

The problem of course arises when employers have not given employees Letters of Employment, or worse – they have issued Letters of Employment, but the letter does not stipulate the retirement age.

This of course is where things usually go pear-shaped! You see the generally accepted age is 60 or 65 years and if nothing is stipulated in the Letter of Appointment you cannot suddenly retire someone at, say aged 55.

Once your Letters of Appointment have gone out to staff (with or without the relevant retirement age), you now cannot all of a sudden decide that you want to make the retirement age 57.

This now has to become a negotiation or at the very least, a consultation with your staff in order to reach a consensus.

Should you decide on your own, what age you wish for them to retire, this will be considered a ‘unilateral amendment of employment conditions’ and your employees then would have the right to either refuse the age or comply with forced retirement at the age that you have decided upon.

That said, as an employer, you do have the right to enforce a formal retirement age, at a certain stage, even if this has not been done consistently in the past, as long as you go the necessary consultation or negotiation course with your staff.

If, for example, the employer has not indicated the retirement age at say 60, then after a negotiation process the retirement age is fixed at 60, the employer now cannot go and ‘retire’ all of those employees who are already 60 and over.  This would be seen as ‘unfair’ dismissal.  What would need to occur is that the retirement age of 60 would need to be phased in over a period of say two years.  This would give the affected employees time to sort their lives out and plan for their retirement.

Nikki is an Internal Auditor and Business Administration Specialist who can be contacted on 083 702 8849 or nikki@viljoenconsulting.co.za or www.viljoenconsulting.co.za