Employment contract - Curriculum Development

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Human Resources function
For Telematics
Relevant legislation and activities
By Amanda Juries and Ross Mileham
Overview of Content.
HR
Description
Selection
/Interview
Recruitment
JOB
Specification
Internal
Placement
Induction
Employment
Contract
External
Payday
Employee
benefits
Termination
Compulsory Benefits/
insurance
Legislation
LRA /
BCEA
SDA /
EEA
Strikes
Illegal and
illegal
Meaning “human resources”

Definition "The division of the company that is
focused on activates related to employees.
◦
◦
◦
◦
◦
Hiring
Firing
Training
Orientation
Retention(Happiness)
“Builds and runs the human engine in a
company”
It is all in the details
Job
Description
Job
Specification
Duties
(What will you
do)
Skills
(Can you use a
computer?)
Responsibilities
(what you are in
charge of)
Knowledge
(what have you
studied?)
Before selection is recruitment
Internal (promote
or place from
inside the
company)
Micro
environment
(your company )
External (get
people from
outside the
company)
Selection Process
Preliminary
screening(look at
CV’s)
Shortlist(Only
the best get on
the list)
Inform the
people on the list
Contact
references(check
the background)
Test/assess(using
internal testing)
Interview
Choose and
notify the person
you have chosen.
Interview Process

Why interview?
You need to find out is this person the right person for the job?
Ask and check information of job seeker.
Allow the job seeker to ask questions.

Role of the interviewer(employer)
◦
◦
◦
◦

Put interviewee at ease
Explain the purpose of the interview
Let the interviewee do most of the talking
Keep record of key points to review later.
Role of the Interviewee(Job seeker)
◦
◦
◦
◦
◦
Try to be confident
Think before speaking
Do not lie or dodge difficult questions
Try give a balance view of yourself (positive and negative)
Don’t be over-familiar.
Placement
Process of placing an employee in a vacant position in a company.
“An employee is a piece of the puzzle
that needs to be fitted into the right
place.”
Induction(allow the worker to meet
the company)
Purpose
Overview of company.
Meet other workers
Explain rules and policy
Information about products
and services
Benefits.
Increase motivation
Increase quality of work
worker becomes productive
quickly.
Ensures rules are followed.
Training
Refers to development of new skills and
knowledge
 Investment by the employer in the
employees
 Development needs of the workers need
to be understood
 Suitable service provider for the
training(SETA recognised)
 Training increases the efficiency of the
workplace.

Employment contract
 Definition
Oral or written ,express or implied ,agreement specifying
terms and conditions under which a person consents to
perform certain duties as directed and controlled by an
employer in return for an agreed wage or salary .

Legal stuff.
Signed contract is binding
Law requires that a contract is presented to the employee when
the start.
Labour law allows for:
1.
2.
3.
Permanent employees
Temporary employees
Part time employees
Details required in a Contract

Names and address of both employee and employer
 Job description and Job Title
 Normal working Hours agreed
 Leave conditions
 Salary package
 Termination conditions
 Starting date
Payday
Salary(what you earn)
Personal Tax(you pay
SARS)
Benefits(Extra cake
for you)
Salary
Piece Meal:
•
•
•
•
Paid for amount of work(products/things) produced
+ increase amount of work done
- Quality of product may be bad
- Greater need for control of quality
Time related
•
•
•
•
Paid for amount of time spent at work.
- Worker needs supervision(must be watched)
+ worker know in advance how much pay they will get.
+ worker can earn extra working overtime.
Personal Tax

Compasary deduction from your salary as
an employee.(SARS)
SITE(Standard Income TAX on
Employees.)
 PAYE(Pay As You Earn)

Earn More = Pay More tax.
Termination
Resignation
• Employees chooses to leave
Dismissal
• You get told to leave the company
Retirement
• You are old enough to go rest.
Retrenchment
• Company is forced to ask you change or leave positions
in a company.
What laws(acts) does HR need to
be aware of?
SDA
LRA
BCEA
EEA
LRA(Labour relations Act)


Ensure fairness
Rules apply to both employee and employer
Fair Process for
both hiring and
firing
Rights of trade
unions protected
Impact On
HR
Process for strikes
and disputes
Encourage worker
participation
BCEA(Basic conditions of
Employment Act)


Protects employees against unfair labour practices(keep
the game clean)
Minimum Conditions of employment
Work > 45
Hours
Max
overtime
3Hr per
day(10 hrs
week)
1 Hr lunch
for 5 hours
worked
Minimum Rules
30 Days Paid
sick 3 year
cycle
4 Months
Maternity
21 Days
Holiday
EEA(Employment equity Act)



Equal opportunity
Eliminate unfair discrimination
Affirmative Action( AA is a correcting
measure)
Jobs must be
made known
to all
No unfair
discrimination
Impact
On HR
Employment
equity Plan as
a code of good
practice
Fair testing
and
assessment
Identify
employees for
AA
SDA(Skills Development Act)
Provides the structure to ensure training in South Africa
 SETA (Sector education and training Authorities) developed in 23
Sectors
Example: http://www.bankseta.org.za/
http://www.foodbev.co.za/

Training needs
must be
identified
Accredited
service
providers Only
Impact
on HR
SDL(Skills
Development
Levy
Skills must
relevant to
the sector
Fringe benefits

Meaning: Compensation beyond normal
salary
• Company pays
toward your
medical Aid
Fund
• Company pays
towards your
retirement
• Different form
of retirement
savings
Medical Aid
Pension
Provident
Fund
• Extra pay
towards working
costs.
• E.g. Car/cell
allawance
Allowances
Strikes
Legal
Illegal
Procedural(done by
the book)
unprocedural(done
without notice)
May not be
dismissed
Can be dismissed if
misconduct is
serious
No work ,no pay
No work no pay
Other compulsory benefits
Vacation
Leave (21
Days)
Maternity (4
Months)
Adoption
Leave
Sick Leave
Family
Responsibility
Paid Public
Holidays
Compulsory insurance
UIF(Unemployment
insurance fund)
• Employees and employers must
pay towards the fund.(1 % each)
• Apply to all workers and
employers.(Exempt: less than 24
hours a month worker ,learners,
public servants.
COIDA(Compensation
for occupation injuries
and diseases act)
• Employer pays monthly
contributions only.
• Employee is entitled to claim
compensation.
• Dependants are also allowed to
claim compensation.
Advantages of fringe benefits
Boost Morale of
workers
Help attract and
keep good
employees
High risk cover at
low costs to the
company
Improves efficiency
and productivity as
workers feel more
secure
Premiums are tax
deductible which is
good for the
company
Disadvantages of fringe benefits
The company has
to cover the cost
of the benefits
Reduces
profitability
Time and money
spent on
administration
Time and effort
on ensuring
benefits meet the
laws set out
Review of Content.
HR
Description
Selection
/Interview
Recruitment
JOB
Specification
Internal
Placement
Induction
Employment
Contract
External
Payday
Employee
benefits
Termination
Compulsory Benefits/
insurance
Legislation
LRA /
BCEA
SDA /
EEA
Strikes
Illegal and
illegal
Section A questions
1.1 The process of orientating new employees in the workplace.
A
Placement
B
Probation
C
Recruitment
D
Induction
1.2 An act put in place to serve as a legal framework for negotiations between employer and
employee.
A
CPA
B
BCEA
C
LRA
D
HRDS
Section B questions

Question explain the term Fringe benefits and name
these benefits received by same workers.

Answer: Fringe benefits are additional
advantages that have cash value but cannot be
taken in cash.
Medical Aid
Pension
ETC.
Section B Questions continued
5.1.
Read the following statement and answer the
questions that follow:
Lalinka has just been appointed in the
Human Resources Department and is not
very certain about some of the processes
involved.
Advise Lalinka by answering the questions
that follow:
5.1.1.
5.1.2.
Define the term recruitment.
Discuss the difference between internal and external
recruitment.
5.1.3
Name TWO advantages of internal recruitment
5.1.4
Discuss a wellness policy that the human
resource management can introduce that
will make workers more productive at
work. Name any 4 components that
could be included.
5.2.
Browny Limited has recently appointed four new
Employees. The human resource manager has
decided to draw up an induction programme for the
new
Employees. Indicate the benefits that Browny Ltd
could gain from an induction programme.
Answers Section B
5.1. 1.
Recruitment is finding and appointing
new employees to fill positions.
Internal
External
5.1.2.
Recruitment is
done inside the
business√√
Recruitment is done
outside the
business√√







5.1.3. Advantages of internal recruitment
Current employees already know the rules, regulations, customs
and culture of the company.√√
An induction programme will not be needed; this will save time
and money. √√
The employee is known to the company; therefore, detailed
honest information from previous records and supervisors is
available. √√
Offering opportunities to current employees boosts morale and
serves as an incentive for them to perform at their highest level.
√√
Allowing an employee to move to another branch or
department could reduce the chances of this person looking for
another job outside the organization. √√
A positive image of the company is created in the industry and
in the community, which could lead to good outsiders applying
for jobs when they become available. √√
5.1.3. Wellness policy
Stress reduction programmes √√
 Team building √√
 Performance incentives √√
 Coaching and mentoring √√
 Counselling √√


5.4. Benefits of induction

This is the process whereby the newly appointed
employee works efficiently with other colleague in
the business environment. √√
Introduction aims to create realistic expectations
and ensure the he/she becomes productive. √√
Give the newly appointee employee an
opportunity to ask questions about the work
environment. √√
Identify another work as mentor to the new
employee √√
Introduce the newly-appointed√√




Section B Questions Continued
5.4.
Read the scenario below and answer the questions that
follow:
Jose Ltd has recently appointed a five new employees. The
Human Resource Manager has decided to draw up an
induction programme for the new employees.
5.4.1. Indicate the benefits that Jose Ltd could gain from an
induction programme.
5.4.2. Jose Ltd needs to explain to the new employees the
difference between gross salary and net salary. Please
advise him of the difference.
5.4.3. Name two compulsory deductions that Jose Ltd must
make from the employee’s salary
5.4.4. Suggest to Jose Ltd any four clauses that could be
included in the employment contract.
Answers Section B

5.4.2. Gross / Net salary
Gross salary- without deductions √√
 Net salary_ with deductions


5.4.3. Compulsory
 Income
Deductions
tax √√
 Unemployment insurance/UIF √√
 Pension fund √√
 Medical aid √√
 Trade unions membership fees √√
5.4.4. Employment contract
Names and addresses of employers and
employees
 Job title
 Nature and hours of work
 Leave conditons
 Agreement the business has with trade
unions
 Salary and staff benefitssuch as pension and
medical aid schemes
 Termination


Section C Questions
You are the human resources manger at SA car
maker Ltd. The firms production manger resigned
recently .

Question: Discuss in detail your recruitment ,selection,
placement and induction programme for the new
production manager. In view of current legislation
,briefly explain three matters that should be considered
when filling the position.
Essay Answer.
Introduction:
 Human resource management is one of the
functions that contribute to success of the
business
 Business must follow step -by -step process
to ensure that the most efficient candidates
will be selected for the post
 It ensures that the aim and objectives of the
business are achieved and the proper
planning of human resources is done
BODY:
RECRUITMENT






The job analysis must be done, e.g. the job
description and job specification
Determine the key performance areas of the specific
job
The HR must decide on the specific source to be
used
The two kinds of sources are internal and external
The internal source is when the candidate is found
within the business
The external source is when the business makes use
of advertising, educational institutions, head hunting ,
etc.
Selection






The HR manager must formulate short-listing
criteria for the applicants
Read through applications forms and curriculum
vitae (CVs) from the applicants for the post
The HR manager compiles a short list of all
candidates who meet the requirements for the job
He/she informs unsuccessful candidates about the
outcome of their application
The HR manager invites the candidates who were
shortlisted to an interview
Candidates may also be asked to complete certain
tests e.g. personality tests , aptitude tests and / or
skills tests







The successful candidate is informed by correspondence that
he/she is appointed
The successful candidate will receive a written contract and
he/she must sign it
Placement
This is the process where a position is filled with an
employee
When the employee is newly appointed is placed in the right
job he/she is more production
Specific responsibilities of the position must be defined
The newly appointed employee may be required to complete
psychometric tests to determine his/her strengths or
weaknesses, etc.
Induction





This is the process whereby the newly appointed
employee works efficiently with other colleagues in
the business environment
Induction aims to create realistic expectations and
ensure that he /she becomes productive
Give the newly appointed employee an opportunity to
ask questions about the work environment
Identify another worker as mentor to the new
employee
Introduce the newly appointed employee to the rules
regulation and code of conduct of the business
Matter to consider regarding
current legislation





Basic Conditions of the Employment Act(BCEA)
e.g. when considering applicants for a permanent
or contract post OR compliance in terms of thee
Act when drawing up an employment contract
Affirmative Action e.g. consider applicants for the
disadvantaged groups
Employment Equity Act e.g. consider applicants in
terms of race gender and equity
Skills Development Act e.g. consider development
and training
Any other relevant answer related to current
legislation when filling a vacancy
Conclusion
Businesses spend large amounts of money
to ensure that the correct employee is
appointed
 Therefore the HR manager must follow
the prescribes steps in order to appoint
the most suitable candidate for the job

Thank you
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