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John Botha, Labour Relations Manager of Quest Personnel comments
In order to optimise the benefits of flexible staffing, it is
paramount to ensure that certain fundamental issues are taken
into cognisance. Failing this, costly litigation could ensue
either as a result of being accused of unfair labour practice,
unfair dismissal or unfair discrimination.
Furthermore, even if you utilise the services of a Temporary Employment
Service (T.E.S.) it is encumbent on you to ensure that the T.E.S.
adheres to the principles discussed hereunder. This arises from
the joint and several liability relationship between the T.E.S.
and the client for contraventions by the T.E.S. of Basic Conditions
of Employment.
STEP 1: ESTABLISH RATIONALE FOR VACANCY, IDENTIFY JOB SPECIFICATION
AND ROLE CLARITY
In order to clearly communicate expectations of employment
to the employee, the reason and purpose of the vacancy, duration
and tasks to be conducted must be clarified and documented. This
information should give an idea of:
- duration of contract
- purpose of assignment (e.g. time-based or project-based)
- remuneration
- termination needs
STEP 2: COMPILING A FIXED-TERM CONTRACT (F.T.C)
The most important clause herein is the communication of expectations
surrounding duration and method of termination. Many F.T.C's
have clauses stipulating that: "the employee acknowledges
that he or she has no expectation of ongoing or permanent employment
arising from this F.T.C". However, recent decisions confirm
that while this is true at common law, the Labour Relations Act
(1995) expressly provides that reasonable expectation is
cause for unfair dismissal allegations and that employees (irrespective
of the fact that they are non-standard) have the right to procedurally
and substantively fair dismissals for reasons of misconduct, incapacity
or operational requirements.
Thus, to avoid the possibility of the non-standard employee gaining
an expectation of ongoing employment and hence in order to terminate
employment in line with operational business needs, the purpose
of the F.T.C. should be clearly defined in terms of a specific
time period (which then should be adhered to) or in the case of
a project (the duration of which is uncertain) the exact work
which is to be completed.
Once this has been included in the F.T.C., the employee has an
undeniable expectation that his or her employment will automatically
terminate at the expiration of the time period or at the completion
of the tasks described in the project. In this case, only statutory
notification of termination need be given at best.
STEP 3: TERMINATION FOR REASONS OTHER THAN EXPIRATION
OF F.T.C
The Labour Relations Act does not define a 'casual' employee,
but certainly defines an 'employee'. It is clear that non-standard
employees enjoy the same rights as permanent employees also with
regard to procedurally and substantively fair dismissal for misconduct,
incapacity or operational requirements.
This means that:
- in order to terminate for misconduct, the provisions
of a disciplinary code must be applied, including rights to notification,
representation, call and cross-examine witnesses and to present
evidence.
- termination for poor performance (incapacity) can only occur
after being afforded evaluation, instruction, training, guidance,
counselling and representation (see Schedule 8 of the LRA)
- retrenchments and operational changes can only occur after
thorough consultation, disclosure of information and consideration
of remedies short of severance
In the Mediterranean Woolen Mills case, the common law
view that a F.T.C. expired automatically at the end of its term
and that the courts could not examine the fairness of non-renewal
was eliminated.
The Labour Appeal Court held that fairness of non-renewal was
located within an examination of why the parties had entered
into a F.T.C. in the first place! If the job was due to a
bona fide project or a pure limited duration, non-renewal would
be fair.
However, if the objective of the F.T.C. is to assess performance
or if the duration unfairly deprives the employee of permanent
benefits by virtue of a non-temporary nature of job, the Courts
are likely to frown on non-renewal as was the case in Wood
vs Nestle.
In a Natal Fire Protection Association case, a spotter
pilot's F.T.C. was not renewed as a result of the pilot arriving
late to douse a fire. The Court found that the real issue which
resulted in non-renewal of contract was misconduct for which the
employee had already been disciplined. Furthermore, since there
was work available, for a following season, the employment relationship
should have been extended under a new contract.
Summary of Principles of F.T.C:
- Courts and the CCMA will consider fairness along with common
law even more than in the past since Section 186 of the LRA (1995)
specifically cites non-renewal of a F.T.C. as being a dismissal.
- Intention and motive in entering into a F.T.C. is paramount
as to whether it is bona fide and justifiable, and if not renewed
the Courts will consider whether the work was ongoing and if new
employees had taken the place of former employees.
- Basically, fairness will depend on the reason for non-renewal
and if the reason is misconduct or incapacity a procedurally and
substantively fair procedure as defined in Schedule 8 of the LRA
will have to be applied. Lapsing of a F.T.C. to get rid of employees
without valid reason can never be legitimate (Employment Law).
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Rael Solomon of the Labour Consultancy comments
1. The first step in avoiding legal problems is to follow all
the correct procedures in employing the employee in the first
place.
- Obtain a complete and full C.V. from the applicant.
- Check all references. The applicant has rights - respect them (Affirmative Action)
- Interview to check:
- Suitability for the position
- Compatibility with superiors and colleagues
- Ability - suitable tests can be used if special skills are required. Eg. Use of a computer to accomplish a required task
- There should be a precise and definitive "Job" description incorporated into the probationary contract.
2. A probation period, that is reasonable given the circumstances
of the job, is recommended. The period should be determined by
the nature of the job and the time it takes to determine the employee's
suitability for continued employment. where appropriate the employee
should receive:
- Evaluation
- Instruction
- Training
- Guidance and Counselling
Dismissal during the probationary period should follow the procedures
required for the dismissal of a "permanent" employee.
The Act recognises only three grounds for a fair dismissal which
are being unacceptable for "legal" reasons
- Conduct of employee
- Capacity of employee
- Operational requirements of the employer
NB! Dismissal should be preceded by an opportunity for the employee
to state a case in response to the case for dismissal assisted
by a co-employee or trade union representative. Dismissal during
the probationary period is usually due to Incapacity - Poor Work
Performance; misconduct; incompatibility or a combination of these
factors?
ANY PERSON DETERMINING WHETHER A DISMISSAL FOR POOR WORK
PERFORMANCE IS UNFAIR SHOULD CONSIDER:
- Did the employee meet a required work standard
- Was the employee aware of the standard
- Was the employee given a reasonably period to meet the required
standard
- dismissal was an appropriate action
DISMISSAL (B) FOR MISCONDUCT IN THE PROBATIONARY PERIOD:
- Was a rule or standard contravened
- Was the rule a valid or reasonable rule
- Was the employee reasonable expected to be aware of the rule or standard
- Was dismissal appropriate for the contravention.
NB! In all cases involving dismissal the employee should be given
the opportunity to state a case and to be assisted by a trade
union representative where appropriate or co-employee. If the
employee is a union member try to advise the union timeously of
the intended disciplinary action or at least make sure the employee
is aware of his rights.
MISCONDUCT: DISCIPLINARY PROCEDURES PRIOR TO DISMISSAL
- All employers should adopt disciplinary and Codes of Conduct rules that clearly establish the standard of conduct required for an employee
- The employers rules must create certainty and consistency in the application of discipline
- Discipline should be consistent and applied in the same manner for all employees.
- Some rules or standards may be so well established that it not necessary to communicate them eg. theft, gross insubordination.
- Graduated discipline should be used to correct employees behaviour
- Formal procedures do not have to be involved every time a rule is broken or standard not met. Written warnings should be given when deemed appropriate.
- It is usually not appropriate to dismiss an employee for a first offence except for gross and serious misconduct:
- Theft - gross dishonestly
- Gross insubordination
- Wilful damage to property
The employer should consider factors such as -
- employees circumstances
- previous disciplinary record
- the circumstances surrounding the reasons for dismissing
the employee.
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