LABOUR LEGISLATION AND SMME's

Why Labour Legislation Hits SMME's Hardest

Businesses the world over regard government regulation as a mixed blessing - all the more so if you're a Small, Medium and Micro Enterprise (SMME).

Full regulatory compliance is compulsory - not an option, and the following labour relations, employment equity, and occupational health and safety legislation must be complied with:

Labour Relations Act
Basic Conditions of Employment Act
Unemployment Insurance Funds Act
Occupational Health and Safety Act
Compensation for Occupational Injuries and Diseases Act
Employment Equity Act
Skills Development Act
Skills Development Levies Act

However, the sheer volume of labour legislation puts SMME's at a serious competitive disadvantage compared to larger companies. Few SMME's can afford a full-time Payroll Administrator let alone a Human Resources Manager. In any case, a full-time post is hard to justify economically for companies with few staff to administer. Often SMME's resort to delegating responsibility for Payroll Administration and Human Resources to another member of staff to carry out in addition to their normal function. This person is generally unqualified to carry out these tasks and sooner or later a serious regulatory problem arises. The result can be a heavy fine, even a jail sentence or closure of the company. With a little foresight and modest outlay however this situation can be avoided.

Make sure you don't attract the unwelcome attentions of the regulatory authorities. Contact SHRS today to find out how we can help you.

THE SME OUTSOURCING DILEMMA

The problem with Outsourcing Payroll and Human Resources

For South African SMSE's there's one obvious alternative to in-house Payroll and Human Resources functions; that is to outsource both of them.

The lack of integration in the outsourcing market can be seen throughout the sector, whether it be Tax Consultants, Accountants/Bookkeepers, Payroll software houses or Payroll Bureau's who offer only payroll support, to the Human Resource Consultants who are most often of no help with Payrolls.

What the vast majority of SMME owners and managers need is the all important fundamentals, including:

payroll processing that is correct and on time - each and every month
timeous and accurate submission of all statutory returns
a full payroll service - including all monthly reconciliations for payroll creditors and other third parties
all the necessary paperwork in place, before an employee is disciplined so that action can be taken further if need be, without falling foul of the CCMA
employment contracts that are legally binding
salary increase letters that are properly drafted
compliance with all of South Africa's Labour Legislation

That's exactly why SHRS was founded in 2001 – and why the firm has enjoyed such success ever since.

To find out what SHRS can do for you, contact Hermina Patton today.