Author: Cathie Webb, Director, South African Payroll Association (SAPA)
Whenever a worker is retrenched in South Africa, it’s not just one person losing an income. That’s because employees in this country have a high number of dependents. For example, according to the South African Police Union, each 10111 call centre operator supports about 15 dependents. The statistics are probably similar for other industries. That’s why, before any organisation chooses retrenchments, they should do their best to find another way. Alternatives to retrenchment Here are some things businesses might consider, bearing in mind that changes in terms of service require their employee’s consent. • Reduction in work Rather than lose their jobs, employees may be open to working shorter weeks, fewer hours - like half days - or shorter shifts. This means they’ll have some form of income to tide them over, and it frees them up to look for a second job or even another position, making retrenchment unnecessary. • Reduced pay A small reduction in pay across the entire workforce won’t be as hard felt as losing one’s job altogether. Yes, it’s easier to retrench than renegotiate contracts throughout the company. But many have done it successfully. Conversely, freeze increases until the organisation’s fortunes recover. • Voluntary retrenchment Some workers are more desperate to keep their jobs than others, who may have been looking for a reason to move on. Voluntary retrenchment is also a good way of reinvigorating the workforce because those who are no longer aligned with the company’s mission or values are more likely to take the opportunity to leave. • Reduced benefits Although some benefits are required by law, others can often become bloated beyond their value in keeping workers happy and motivated. Reducing benefits gives a business the chance to rationalise their expenditure and, in tough times, employees are more likely to appreciate that necessity. • Redeployment This means either moving willing employees to other departments where their abilities are needed or training them to take on new duties, sometimes completely different to what they were doing in the past. Change is difficult but many workers are keen to extend their skills. • Eliminate overtime Workers are often paid overtime for working after hours or weekends. This need should drop with an ebb in business and companies can safely cancel overtime. However, employment contracts usually require staff to work after hours from time to time without pay, so some extra hours could fall under this clause. • Freeze new hires Rather than reducing the existing workforce, organisations can stop hiring new people. This isn’t always possible because new skills may be required to manage or execute new systems and processes. Again, employers should prefer to up-skill current staff. • Increased duties If a business has enough work but can’t fund the required workforce, the extra duties could be shared by current employees. It’s essential that employers alert them that this is an alternative to retrenchment and that their efforts are appreciated. • Placement assistance programmes Once, business journals lauded companies who helped place employees in new jobs as part of their retrenchment process. Does it still happen? Really, it should. Businesses have large customer, supplier and recruiter databases, as well as strong business networks. All it takes is a bulk email or a LinkedIn post to exponentially increase each retrenched worker’s opportunities. A note to employees There are many ways organisations can avoid retrenchment. That said, new technologies and improved business processes can also lead to positions being made redundant. Skills that were common 5 or 10 years ago may simply no longer be needed in the modern business environment. So, there’s another angle to consider - workers can avoid retrenchment by retraining themselves for jobs that are currently in demand. The unemployment rate in South Africa is one of the highest in the world and, with our current recession, it may get worse. At SAPA, we’re reaching out to employers to not just follow the law but to do their utmost to avoid retrenchments. Sometimes, there’s no other way. But if it’s an excuse to cut costs or improve shareholders’ dividends, this isn’t the right time for such thinking. So please, approach retrenchment responsibly. With the high number of dependents each employee must support, it’s not just one person who will go without. ENDS MEDIA CONTACT: Idéle Prinsloo, 082 573 9219, idele@thatpoint.co.za, www.atthatpoint.co.za For more information on SAPA please visit: Website: http://www.sapayroll.co.za/ Twitter: @SAPayroll LinkedIn: The South African Payroll Association
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The struggling South African economy has created considerable hardship, with low salary increases coupled with greater calls on disposable income. And this has resulted in a perfect storm driving people to commit fraud, says Arlene Leggat, a director of the South African Payroll Association (SAPA).
“People make unwise decisions when they are under sufficient pressure,” she states, adding that companies can help to combat high levels of payroll fraud by encouraging their payroll administrators to become members of a professional association. “Payroll administrators manage large amounts of money. It therefore makes sense to professionalise this industry from a number of viewpoints, not the least of which is the prevention of fraud,” Leggat puts forward. She states that if payroll professionals have signed up to a code of ethics, they understand the impact. Acting ethically is a conscious decision, and the more it is done, the more it becomes second nature. Additional measure “The other side of the equation is to ensure that the correct controls are in place.” Leggat advises companies to collaborate with their external auditors to design the most effective controls. Because they interact with so many organisations, auditors are best placed to advise on fraud patterns, and what controls work best. Given that payroll processes are software-driven, she adds that real-time variation reporting is emerging as a key mitigator of fraud risk. “Professionalisation, with its combination of an ethical code and ongoing education, and proper controls are the two pillars payroll-fraud detection and mitigation,” she concludes. “Fraud generally, and payroll fraud in particular, are real threats, but these basic measures can really help.” Drivers of professional membership “It’s a relatively new concept in South African payroll, but the trend towards professionalisation in other disciplines, such as tax practitioners and directors, is quite marked. The drivers are very similar: to ensure that people have the right skills for the job, that they sign on to a code of ethics and are subject to the professional association’s disciplinary procedures.” As a member of SAPA, a payroll administrator undertakes to adhere to its code of ethics, and to undertake structured continuous professional development to ensure his or her skills remain current. Any contravention of the code of ethics would lead to the rescinding of the professional certification. Globally, payroll fraud is the number-one source of accounting fraud and employee theft, according to the Association of Certified Examiners. It occurs in 27 percent of all businesses, and the average instance lasts on average for 36 months.[1] Research by PwC shows that South African companies suffer hugely from HR fraud, of which payroll fraud of various kinds is prominent: falsification of entitlement/ employee benefits (36%), false wage claims (39%), ghost employees on the payroll (30%) and misclassification of payroll expenses (16%).[2] ENDS [1] Matthew Garrett, “Payroll Fraud—A big threat and how to avoid it”, Forbes (10 September 2013), available at https://www.forbes.com/sites/matthewgarrett/2013/09/10/payroll-fraud-a-big-threat-and-how-to-avoid-it/#40c6826c746f. [1] PwC, Economic Crime: A South African pandemic (Global Economic Crime Survey 2016), available at https://www.pwc.co.za/en/assets/pdf/south-african-crime-survey-2016.pdf. MEDIA CONTACT: Idéle Prinsloo, 082 573 9219, idele@thatpoint.co.za, www.atthatpoint.co.za For more information on SAPA please visit: Website: http://www.sapayroll.co.za/ Twitter: @SAPayroll LinkedIn: The South African Payroll Association Fraud—A big threat and how to avoid it”, Forbes (10 September 2013), available at https://www.forbes.com/sites/matthewgarrett/2013/09/10/payroll-fraud-a-big-threat-and-how-to-avoid-it/#40c6826c746f. [2] PwC, Economic Crime: A South African pandemic (Global Economic Crime Survey 2016), available at https://www.pwc.co.za/en/assets/pdf/south-african-crime-survey-2016.pdf. Author: Cathie Webb, Director at The South African Payroll Association During Women’s Month, it is important to consider the gender related problems we still face as professionals. One of the major concerns is the gender pay gap. Although this gap has been growing smaller over the past years, it remains a legitimate problem. Even in a female dominated sector (such as retail, healthcare, cleaning, primary education and secretarial and administrative functions, including payroll), it is often found that male employees are paid more than their female counterparts for the same work. Some of the remedies women can consider regarding the gender pay gap include: choosing to further your education in a field you know is in demand, completing your education, choosing a field or sector that pays well, negotiating your salary at each new career step and requesting constant on-the-job training. Being a true professional A payroll professional is a payroll employee who not only performs their basic job requirements, but also comprehends the implications of managing the payroll function in their business environment. They should be able to add strategic input to the company they work for, rather than only producing accurate and timeous pay slips. Relevant advice on issues such as pending changes to tax law and requirements, making recommendations and transitioning their knowledge with ease from one type of business to the next are some of the important skills a payroll professional should have. Depending on their level of employment and the size of the employer, they should be able to manage a team, deal with HR issues, advise employees on tax issues and be able to manage projects. The importance of the right qualifications Traditionally payroll employees were trained by their predecessors and by the manufacturers of the payroll software used by the company. These imposed limitations in the scope for understanding how to improve systems and a wider view of business and strategy as a whole. As with all other qualifications, when the trained professional learns about the “outside world”, how other professionals work and what is considered to be best practice internationally, they will have a broader impact on their business and be able to add more value. Until the early 2000’s, there were no formal payroll qualifications available in South Africa. An FET certificate in Payroll Administration (NQF Level 4) and an NQF Level 5 Diploma were then introduced, which were both approved by the South African Qualifications Authority (SAQA). Training providers were also accredited by the Services SETA. In late 2015, a BCom degree with a focus on payroll was launched by the Da Vinci Institute for Technology Management, a Mode 2 university. The Da Vinci Institute selected Accsys as the payroll faculty for the degree. These qualifications assist in teaching payroll employees the necessary skills they will need to perform more than just their basic work. Awarding payroll professionals Each year SAPA runs an awards programme for payroll professionals. The programme is designed to give recognition to the people who make a difference in the payroll industry and in their respective businesses. The awards programme serves to motivate payroll employees to go the extra mile in their jobs and truly become payroll professionals. There are three levels in the awards programme, Junior, Senior and Team, and nominees must satisfy strict criteria that measures their professionalism. A list of the criteria is available on the SAPA website, as well as information on who can qualify for the awards, the nomination process and the awards themselves. Nominations for the 2017 awards closed on the 11th August, 2017 and winners will be announced at the Annual SAPA Conference on 6th September 2017 at Emperors Palace. ENDS MEDIA CONTACT: Idéle Prinsloo, 082 573 9219, idele@thatpoint.co.za, www.atthatpoint.co.za For more information on SAPA please visit: Website: www.sapayroll.co.za Twitter: @SAPayroll LinkedIn: The South African Payroll Association The current economic outlook is set to have an impact on the bottom line, business and morale, but robust payroll auditing and management processes can curtail risk and support growth. Even in a recession there are specific steps that can be put in place to mitigate risk and enhance payroll effectiveness, ensuring that finances are tightly controlled and that the organisation is prepared for what the recession has in store – spread the payroll load, use the insight from payroll data, and clearly document processes. “The most common risk area in payroll departments is having one person responsible for the calculation of payroll values, reconciliation and payment,” says Cathie Webb, director, South African Payroll Association. “In a recession, when people feel their jobs and income are at risk, there is a temptation to help themselves to a little bit on the side.” Webb points out that on a psychological level, incremental thefts are often not perceived as a crime. People think that the tiny sums won’t hurt the business. However, this is not true. Every cent removed illegitimately from a business has an effect on every person working there. Reducing the risk “The easiest thing to do to reduce risk is to ensure that the different areas of the payroll cycle are the responsibility of another person,” says Webb. There must always be a high-level view over every aspect of payroll. In a large organisation, it is fairly easy to ensure that the payroll audit is managed by different people, but in a smaller business this may not always be possible. In this instance, there needs to be another person who does sign off and checking before payments are made. “Payroll also plays a supportive role in tough economic times,” says Webb. “Strong payroll administrators should be looking for areas where they can add value and strategic input. For instance, in a multi-departmental branch or organisation, they can assess things like leave patterns and even identify management issues. Payroll has the ability to uncover behavioural patterns that can be managed or enhanced to boost business productivity, cut back on waste and even encourage growth in a recessive environment.” Document and detect Payroll can use its understanding of finances and budgeting to support employees and businesses in better managing money. South African suffers from a debt culture and few people save for the proverbial rainy day. Payroll’s role in educating people, showing them the value of not spending more than they earn and giving them the tools they need to save for the future, will play a role in the financial success of the organisation. Finally, payroll’s place in protecting against the impact of the recession can be found in the documentation. Webb recommends that the payroll department has clear checks and balances that are adhered to rigorously as it is one space where mistakes and missed deadlines cannot be tolerated. “This way, payroll frees their minds from having to remember the small things so they can focus on ways to add value,” concludes Webb. ENDS MEDIA CONTACT: Idéle Prinsloo, 082 573 9219, idele@thatpoint.co.za, www.atthatpoint.co.za For more information on SAPA please visit: Website: http://www.sapayroll.co.za/ Twitter: @SAPayroll LinkedIn: The South African Payroll Association The recent downgrade of South African government debt increases economic uncertainty, with unpredictable effects. “While many of the outcomes of the downgrade have been surprising, one thing is clear: government debt is going to be more expensive. That will almost certainly mean that both local interest rates and taxes will continue to rise,” says Cathie Webb, Director, South African Payroll Association.
“Payroll departments need to be taking proactive action to help employees negotiate these difficult economic conditions, which our current political turmoil is exacerbating.” The Reserve Bank has indicated that further downgrades remain a possibility, further affecting the cost at which the government can finance its escalating debt. How to help Webb argues that Payroll needs to understand the pressures that employees face during tough economic times, and where they are spending their take-home pay. While this may seem beyond the department’s remit, in fact financial insecurity has a direct impact on employee motivation and engagement, and thus on productivity. The likely rise in interest rates will have an immediate impact on disposable income, she says. Employees who already have debt need to be educated about how to manage it in the event of an interest-rate hike—and those who are not in debt should be encouraged to remain debt-free. Other financial pressures would include increased taxes, be it VAT or personal tax, or both, as well as higher petrol prices. Fuel costs increase food inflation, creating sustained pressure on household budgets. The economic pressures caused by the downgrade will also impact the ability of employees to save. The country already lacks a savings culture, with the savings rate having declined from around 24 percent between 1960 and 1990, to 16.5 percent between 1991 and 2014. This deprives the local economy of investment capital for growth and development. At a personal level, a lack of savings means that a majority of South Africans will not retire on sufficient capital. “The only real solution is proper budgeting—and then sticking to it. Too few South Africans actually do the exercise of understanding how they spend their money, and how they should be spending it,” Ms Webb says. “But if your personal finances are in disarray, there is a knock-on effect across everything, including performance at work. Payroll simply has to see its role more broadly in the quest to attract and retain the best talent for the company. That will include helping them to manage money better in tough times.” ENDS MEDIA CONTACT: Idéle Prinsloo, 082 573 9219, idele@thatpoint.co.za, www.atthatpoint.co.za For more information on SAPA please visit: Website: http://www.sapayroll.co.za/ Twitter: @SAPayroll LinkedIn: The South African Payroll Association Author: Cathie Webb, Director, South African Payroll Association We encourage all employers, employees and payroll departments to prepare themselves for an income tax increase that will likely be announced during Finance Minister Pravin Gordhan's upcoming National Budget Speech. Too much tax South Africans already contribute multiple taxes. Therefore, the government is faced with a difficult decision - how to bring in much-needed revenues to run the country effectively without overburdening the man or woman in the street. In tax theory, there’s a level at which taxation can become so high that the average person stops aspiring to a better lifestyle and becomes less economically active. At this point, working any harder seems fruitless. In light of this, the government strives to meet its budgetary requirements without crossing that threshold. However, if people are still left with less disposable income, this can lead to a lower aggregate demand for goods, which puts deflationary pressure on the economy. The result is loss of business profits, lower output and therefore fewer jobs. Limited options However, government’s options are limited. In his 2016 budget speech, Minister Gordhan clearly indicated that R28 billion would have to be raised over the next two years, consisting of R13 billion in 2017 and R15 billion in 2018. There are only three main paths to acquiring the funds, namely by increasing value-added tax (VAT), company tax and/or personal income tax. Because a VAT increase would place a uniform burden on all members of the population, the greatest impact would be felt by the poor. Therefore, it’s less desirable to increase VAT, as opposed to company or personal tax. Despite this, it should be noted that South Africans enjoy the lowest VAT rate in the world, so an increase would not be unwarranted and some even expect it. However, taking into account all taxes levied on South Africans, it’s quite possible the country has one of the highest taxations globally with fewer benefits than nations paying more VAT. It would appear then that an increase in personal and company tax is highly likely, with a lower probability of an increase in VAT. Commentators point to several other taxes the government may levy, including proposed increases on consumption goods, such as alcohol, tobacco, soft drinks, fuel, as well as the much publicised sugar tax. However, these will not be enough to cover the deficit. Bracket creep Certain income ranges may also be exposed to bracket creep. This happens when workers receive their annual pay increase to offset inflation. They haven’t gained extra purchasing power but, from a tax perspective, they appear to be earning more and in some cases, may enter a higher tax bracket. The effect could be that the higher taxation reduces their take-home pay below previous earnings. Historically, tax brackets have been adjusted to match inflation-based pay increases. In the years ending February 2016 and February 2017, the top 2 tax tiers remained essentially unchanged. But the marginal rate in these brackets increased from 40% to 41%. This year, government might leave selected tax brackets as is, or raise them at a lower rate than inflation-adjusted increases. If this happens, it will have an added effect to higher income tax and employees should be prepared to adapt their lifestyles accordingly. Payroll preparation If an income tax increase proves true, payroll departments should move as swiftly as possible to update their tax tables, and to ensure that the staff in the organisation are aware of the changes, and how it will impact them. It’s not unusual for larger organisations to take longer because of their complexity and size. But delaying implementation until April or May could mean that employees will pay more tax due to accumulated PAYE from March. Seeing a lower take-home figure on one’s payslip is never appreciated. Looking to the future Although South Africans have no reason to celebrate, it’s important to realise that our current economy is more the result of the global financial crisis than our own doing. We’re a great nation with the highest gross per capita income (GDP) in Africa and we have a lot going for us. We can regain our momentum by rolling up our sleeves, pulling together and working hard together to improve our nation. ENDS MEDIA CONTACT: Idéle Prinsloo, 082 573 9219, idele@thatpoint.co.za, www.atthatpoint.co.za For more information on SAPA please visit: Website: http://www.sapayroll.co.za/ Twitter: @SAPayroll LinkedIn: The South African Payroll Associatio As the Christmas season approaches, some lucky employees will be looking forward to a bonus or a thirteenth cheque. Frequently, however, people express surprise that their thirteenth cheque doesn’t translate into double their typical take-home pay. The reason for this, explains Cathie Webb, Director, South African Payroll Association, is that the double cheque may have placed them into a higher tax bracket, and thus a greater tax deduction. “One source of confusion is that people often hear from friends in another company, or even their own company, that they in fact did receive a full double cheque,” explains Ms Webb. “The reason for this is that some companies factor in the thirteenth cheque by deducting extra tax each month, so that the December take home pay is virtually double the normal one. Of course, that means that for the other 11 months, their monthly take-home pay will be less than someone who pays all the extra tax in the month the thirteenth cheque is paid. Different regimes may also apply within the same company for some reason.” Although companies tend to follow one approach to handling tax on thirteenth cheques in order to reduce administrative overheads, some companies are prepared to be flexible in order to suit employees’ wishes. Whatever the case, employees should inform themselves about the policy implemented by their particular company, and how the deductions work. Ms Webb says that while a thirteenth cheque forms part of the total package offered to an individual, a bonus is a variable amount linked to the company’s performance. A bonus is usually awarded only at the discretion of the company. As with a thirteenth cheque, the bonus might take an individual into a higher tax bracket, resulting in higher than usual deductions in the month it is granted. “It bears mentioning that anyone who gets a thirteenth cheque in the current economic climate is very lucky indeed,” she concludes. “If you are receiving thirteenth cheque or a bonus, make sure you understand how it has been calculated, and then take a resolution to spend it wisely as well.” ENDS MEDIA CONTACT: Cathlen Fourie, 082 222 9198, cathlen@thatpoint.co.za, www.atthatpoint.co.za For more information on SAPA please visit: Website: http://www.sapayroll.co.za/ Twitter: @SAPayroll LinkedIn: The South African Payroll Association Payroll fraud schemes typically last about 2 years before being detected, and are twice as frequent in small businesses as in larger ones. This is according a 2016 Global Fraud Study by the Association of Certified Fraud Examiners. Most often, perpetrators hold accounting positions (21.6% of cases). Cathie Webb, a Director of the South African Payroll Association (SAPA), says employers should be wary when their payroll administrator resists being away from the office. “It may be they’re afraid that someone standing in for them will uncover irregularities and expose them.” So a payroll administrator who never takes time off, arrives early, leaves late and works over weekends may seem dedicated. But they could also be committing payroll fraud. Apart from always being at their desk, such administrators are overly protective of their records, computerised or physical. They’ll insist that the work won’t be done correctly by those who don’t know their system but will avoid training backup personnel to perform their duties. How it starts “It often begins with financial difficulties at home,” suggests Webb. “The practitioner might create and pay a falsified employee or change their own pay rate for a single run just to get out of hot water.” But when the act goes unnoticed, it becomes easier to repeat and eventually snowballs into major fraud. Why the problem exists Unfortunately, blame falls squarely on the organisation. “In most cases we’ve witnessed, the shocked employer completely trusted the payroll administrator and never audited their work,” reports Webb. “It’s an accounting function and the same checks and balances need to be enforced.” How to prevent it Employers can take several steps to short-circuit payroll fraud: Employ a certified payroll practitioner The days when payroll was a ‘fallen into’ career, one which was discovered as someone worked their way up the ranks, are rapidly disappearing. Today, payroll is one of the pillars holding up the business, handling one of its biggest costs and providing strategic insight which transforms corporate communication and impacts on the bottom line. “When a business hires someone who has chosen a career in payroll, they are hiring someone who understands the challenges, knows how to minimise statutory risks and reputational damage and who can see the links between payroll, finance and HR,” says Webb. “They have the skill and knowledge to address any disconnect with management and are strategists who know their value and how to communicate with those in charge.” Today’s payroll practitioner is a strategic thinker who understands risk, recognises the potential for engagement across departments and knows the business from the inside out. Segregation of duties Certain payroll duties can be delegated to others. For example, the payroll practitioner prepares the banking file, but finance performs its submission to the bank. A third person should be responsible for checking that all the reporting balances. Additionally, the banking transactions should always require two authorisations, by people who clearly understand that the responsibility includes checking the details. Internal audits It’s good practice to perform regular audits to make sure the business is running smoothly. Include a thorough inspection of payroll records and processes. An approval process Payroll submissions should follow a systematic approval process with department or team managers reviewing and signing-off payroll for their staff. The financial director or CEO should also inspect and approve consolidated payroll for the company. Master record auditing It may be possible to place automatic alerts on changes to computerised master records, such as employee pay rates or bank detail changes. Secondary staff are alerted, and review and approve them. Task automation Some payroll tasks can be handled by a computerised process. Because calculations or processing happen in the background, there’s less opportunity to tamper with figures. Staff rotation Train backup staff to perform payroll duties so they can stand in for an absent payroll practitioner. But also have them perform payroll duties regularly so that one person never has complete control. Annual leave Force payroll practitioners to take annual leave. It’s a good way to prevent both fraud and burnout. A well-rested practitioner is more alert and less prone to errors that could also result in loss if undetected. Be proactive Your dedicated payroll practitioner may or may not be defrauding your company. “Rather than worrying about it,” advises Webb, “take time-tested steps to prevent the opportunity.” ENDS MEDIA CONTACT: Cathlen Fourie, 082 222 9198, cathlen@thatpoint.co.za, www.atthatpoint.co.za For more information on SAPA please visit: Website: http://www.sapayroll.co.za/ Twitter: @SAPayroll LinkedIn: The South African Payroll Association It is essential that employers support employees in recognising if they are suffering from Post-Traumatic Stress Disorder (PTSD) and that they understand the difference between this level of stress-related illness and other forms of work-related stress or fatigue. The Occupational Health and Safety Act and the Compensation for Occupational Injuries and Diseases Act (COIDA) both recognise the impact of PTSD on employee and employer. It is a potentially debilitating condition which affects performance and personality and there are a number of symptoms which can be attributed to it. “PTSD is not the same as normal workplace stress,” says Cathie Webb, Director at the South African Payroll Association (SAPA). “Difficulty with another employee, extended working hours or a toxic working environment – these are factors which impact individuals on a different level from PTSD. There should be processes in place to resolve these challenges internally already, but for an employee to benefit from an employer’s contribution to the Compensation Fund, they would have to suffer from symptoms that are far more severe.” The Compensation Fund is a mandatory fund to which all employers must contribute. From the moment a business hires its first employee, the organisation has seven days in which to register with COIDA. Employers have to detail the type of work undertaken by the business, and pay towards the fund on an annual basis. The impact of stress “The outline of the Act is simple – keep track of incidents while performing agreed work which result in physical injury or mental illness and follow the guidelines,” says Webb. “It is designed to protect the employer from having to deal with litigation for each employee and give the employee financial support as they recover. Any injury or illness covered by the Act has to be medically approved.” The employee has to see a medical professional who will confirm that they are unable to function in their role. Some of the symptoms of PTSD which would be immediately visible to the employer would include constant hyperventilation when facing the situation which caused the problem, crippling levels of anxiety or fear, and excessive sweating. “Whether or not a person would qualify for the support of the fund depends on a number of factors,” says Webb. “They would need to see a psychiatrist who would confirm they have PTSD and they need a certificate which verifies the diagnosis. Employers should also remember that they have to apply for the fund within six months of the incident taking place in order to ensure their employee is given the support and time off that they need.” In addition to the above parameters, the employee will also have to go to a panel to confirm whether or not they need to be booked off or if they are eligible for the compensation fund. It is the employer that needs to submit the claim and employees’ money will be send to their employer’s address. If employers do not send in the forms or the claims takes too long, the employee must contact the nearest labour centre and report it. The ideal employer “PTSD is a delayed or protracted response to an exceptional catastrophic event which causes distress and can have a long-term impact on an employee,” says Webb. “The employer has to recognise the symptoms within the person, but also be aware of the events themselves.” The employer needs to assess the situation and note if someone is always battling to cope with their role after an incident. For example, this could be a member of the military forces that experienced a violent incident. They need to be aware of the symptoms of PTSD and have a workplace ethic which supports staff when it comes to stress or trauma. Although the act caters for employees that are faced with PTSD, it remains the employer’s responsibility to ensure that other layers of work-related stress are catered for, creating a positive working environment throughout the business. ENDS MEDIA CONTACT: Cathlen Fourie, 082 222 9198, cathlen@thatpoint.co.za, www.atthatpoint.co.za For more information on SAPA please visit: Website: http://www.sapayroll.co.za/ Twitter: @SAPayroll LinkedIn: The South African Payroll Association Why you should avoid misusing sick leave When it comes to the issue of leave, one of the biggest challenges facing both employer and employee is the misuse of sick leave. A recent study by Occupational Care South Africa and Statistics South Africa found that an average of 15% of employees are absent on any given day, and that only one in three of those absent are actually sick. This is costing the South African economy an estimated R16-billion a year. “The pressure on the organisation isn’t letting up and employees need to remember that they have a job because their employer needs them to fulfil a function,” says Cathie Webb, Director, South African Payroll Association. “If you aren’t there, someone else has to stand in for you so it is important to take your employer into consideration when using your leave, especially sick leave. Some people see their sick leave allowance as a target, rather than something to be taken when absolutely essential.” Not only does the abuse of sick leave cost the organisation in terms of productivity, but the employee will have to use their annual leave should they suddenly need extended leave to recover from an operation, for example. Once that is used up, they will then be on unpaid leave, which will affect them financially. “Employers are much more likely to be approachable in terms of alternative ideas in an emergency if an employee doesn’t have a history of abusing leave,” says Webb, adding that the wisest course of action is for employees to remain within the rules around sick leave. Also important to note is that companies are not legally required to offer the benefits of additional leave elements, such as study or religious leave. On the contrary, many companies are reducing leave allowances due to the current poor economic climate. Employee Responsibility While some companies do not stipulate leave in their contracts, others have very precise regulations and it is up to the employee to know how their company handles the issue of leave. “It is common practise, and legally required, for companies to detail the number of leave days to which an employee is entitled in their employment contract,” says Webb. “While it is good practice to reflect the leave balance due to an employee on payslips, this is not a legal requirement.” In cases where a company does not provide leave information in their contract, the Basic Conditions of Employment Act applies. This is broken down into three distinct categories namely, annual, sick and family responsibility. Employees are entitled to 15 working days per year for annual leave, 30 working days over a three-year period for sick leave and three days per year for family responsibility leave, if they work a 5-day week. A six day working week accrues accordingly. Webb conclude that as an employee of a company the onus thus falls on you to understand exactly what your rights are when it comes to leave. Know what you are entitled to, how it is structured and the rules which dictate it. ENDS MEDIA CONTACT: Idéle Prinsloo, 082 573 9219, idele@thatpoint.co.za, www.atthatpoint.co.za For more information on SAPA please visit: Website: http://www.sapayroll.co.za/ Twitter: @SAPayroll LinkedIn: The South African Payroll Association |
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