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Current HR Trends and Legislative Changes – how do we successfully navigate this?

by HRinWIne
Homepage/HR Services/Current HR Trends and Legislative Changes – how do we successfully navigate this?

As South Africa’s labour landscape evolves, businesses must stay informed about key legislative updates affecting human resources and compliance.

Three significant developments in 2024 are the amendments to Broad-Based Black Economic Empowerment (B-BBEE), adjustments to the National Minimum Wage, and the Draft Code of Good Practice on Dismissals. These Legislative changes impact how wineries and agricultural businesses structure their policies and operations to remain compliant.

B-BBEE Amendments: Strengthening Transformation

The government has introduced proposed changes to the B-BBEE framework aimed at driving meaningful economic transformation. Key aspects of the amendments include:

  • Increased Focus on Skills Development: Businesses are expected to allocate greater resources towards training and upskilling previously disadvantaged individuals.
  • Enterprise and Supplier Development Adjustments: Companies must demonstrate a tangible commitment to supporting black-owned businesses, with stricter compliance measures to track supplier development initiatives.
  • Potential Adjustments to Ownership Criteria: While still under review, proposed changes may introduce higher ownership targets for specific sectors.

These changes emphasise the need for businesses to proactively refine their B-BBEE strategies to maintain compliance and competitiveness in procurement and government tendering processes.

At HR in Wine we partner with Industry experts to assist Wineries with this compliance.

National Minimum Wage Adjustment: Implications for Employers

The National Minimum Wage (NMW) has been increased effective 1 March 2024, impacting businesses across various industries. The revised hourly rate now stands at R27.58 per hour, representing a rise aimed at ensuring fair compensation for workers.

  • Sector-Specific Adjustments: While the general minimum wage applies broadly, certain industries such as domestic work and farm workers also see proportional increases.
  • Compliance and Payroll Adjustments: Wineries and Agricultural Businesses must ensure payroll systems reflect these updates to avoid non-compliance penalties.
  • Impact on Budgeting: Businesses should assess the financial implications of these wage adjustments and consider strategies for cost management while maintaining fair employment practices.

Non-compliance with the NMW can result in fines and reputational damage, making it essential for businesses to align remuneration structures.

Draft Code of Good Practice on Dismissals: Ensuring Fair Labour Practices

The Department of Employment and Labour has issued a Draft Code of Good Practice on Dismissals, aimed at refining dismissal procedures to ensure fairness and legal compliance. Key highlights include:

  • Enhanced Procedural Fairness: The draft code emphasises the necessity for well-documented and transparent disciplinary processes, reinforcing the importance of procedural correctness in dismissals.
  • Stronger Protections Against Unfair Dismissals: Employers must ensure that dismissals are substantively and procedurally fair, with clear justifications aligned with the Labour Relations Act.
  • Greater Focus on Alternative Dispute Resolution: Encouraging mediation and conciliation before resorting to dismissals can help mitigate legal risks.

Agricultural businesses should review their disciplinary and termination procedures to align with the evolving regulatory landscape, reducing the risk of disputes and CCMA referrals.

Preparing for Compliance and Change

With these legislative updates shaping the HR landscape, Wineries and Agri businesses must take proactive steps to ensure compliance:

  1. B-BBEE Strategy Review: Reassess transformation initiatives and supplier development strategies to meet new requirements.
  2. Payroll & Budget Alignment: Adjust wage structures to comply with the new National Minimum Wage.
  3. HR Policy Updates: Revise disciplinary and dismissal procedures in line with the Draft Code of Good Practice.
  4. Training & Awareness: Educate teams and managers on these changes to ensure smooth implementation.

For small wineries, these trends are critical to building a sustainable and competitive business. HR in Wine specialises in helping wineries adapt to evolving HR landscapes with practical and customised strategies.
View the New Draft Code on Dismissals here

Call us today to find out more and ensure compliance!