EMPLOYEES: FORMAL REQUIREMENTS
Article by listed accountant TYRONNE NEL
Employees – what should I know? (see also: Employees & Your Business )
At Phezulu we have come to realise that besides slow or non paying customers, your other big business headache is going to come from your staff. So how do I avoid this pitfall you ask? Well, fortunately, it is easier than you think. The trick is to be super organised, so any transgressions by your staff are dealt with quickly and efficiently.
The Department of Labour website (http://www.labour.gov.za/DOL), has all the information you could possibly need, however for the purposes of this blog, we are going to assume you are employing staff for the first time therefore we are going to take you right back to day one.
What should I take care of before I even place my employee advert?
Write a comprehensive job description for the post you would like to fill! Include as much detail as possible, even if you think some of the tasks should be obvious.
Get a professional to draft you a Letter of Employment, an Employment Contract as well as a Code of Conduct, that you can use when employing your staff.
Purchase the summarised versions of The Basic Conditions of Employment Act, The Employment Equity Act and The Occupational Health and Safety Act and display them where your new employee has access to them.
I’ve employed my new staff member, what now?
Make sure you have signed copies of the Letter of Employment and the Employment Contract as well as other details like a copy of their ID, details of next of Kin and bank account details.
Register your business as an employer with the Department of Labour (UI-8)
Register your employees details with the Department of Labour (UI-19)
Register your business with the Compensation Commissioner
My new employee is not living up to expectations, what can I do?
We always suggest that you get to know a very good labour relations professional that understands your industry and is not to expensive.
At the first sign of trouble (continuous late coming, poor work performance, bad attitude, etc.) call out the labour relations professional to conduct a disciplinary hearing.
Do not overlook this basic step as how you treat your first unruly employee, will set the tone for all future interactions and for all future staff.
Is firing staff really as difficult as the media portrays?
In our experience, the answer is a resounding NO!
The above is the typical “life cycle” of an employee and unfortunately it is those employers who don’t follow the rules that find it difficult to remove troublesome and unproductive staff. Therefore understand the rules and make them work for you.
At Phezulu Business Management we do more than just advise clients about their staffing issues, we are in fact your one stop SME shop, assisting with everything from Accounting, Business Management, BEE, Consulting, Company Registration, Payroll and Mentoring.