Summary notes on legislation

grade 12 business studies learner revision

booklet summary notes legislation

2023

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 Summary notes on legislation

INTRODUCTION
The purpose of this booklet is to:
 Provide a summary of different Acts
 Identify keywords and common concepts that are applicable in some Acts and
learners can use them in different content and context.
 Help learners understand all eight Acts.

Learning objectives
At the end of this topic, learners should be able to:
outline/describe/explain/discuss the purpose of the SDA, LRA, EEA,
BCEA, COIDA, BBBEE, NCA and CPA
❖ discuss/explain/evaluate the impact (positives/advantages and/or
negatives/disadvantages) of the SDA, LRA, EEA, BCEA, COIDA,
BBBEE, NCA and CPA on businesses
❖ outline/explain/discuss actions regarded as non-compliance by the
SDA, LRA, EEA, BCEA, COIDA, BBBEE, NCA and CPA
❖ outline/explain/discuss penalties/consequences for non-compliance with the SDA,
LRA, EEA, BCEA, COIDA, BBBEE, NCA and CPA
❖ suggest/recommend ways in which businesses can comply with the
SDA, LRA, EEA, BCEA, COIDA, BBBEE, NCA and CPA
❖ outline/explain/discuss the role/functions of SETAs
❖ explain how SETAs are funded
❖ define/elaborate on the meaning of learnerships
❖ explain the National Skills Development Strategy (NSDS) and the Human Resource
Development Strategy (HRDS) (that is, Sector Education and Training Authorities)

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 Summary notes on legislation

Key concepts

 Affirmative action: the policy and process of providing preferences in employment

opportunities for previously disadvantaged people.
 Bargaining councils: negotiations between trade union representatives and employer
organisations on labour related issues such as demand for higher wages or improved
working conditions.
 BBBEE Scorecard: BBBEE scorecards measure a business’s compliance with BBBEE and
a certificate is issued to the business that stipulates their BBBE rating.
 Collective agreement: an agreement entered between a trade union and an employer
organisation concerning the terms of employment for specific matters.
 Collective bargaining: process of engaging and solving labour disputes collectively
between trade union representatives and employer organisations
 Compensation Fund: this fund provides compensation to employees who are injured or
contract diseases through the course of their employment.
 Credit providers: businesses that sell goods and services on credit/offer credit
purchasing options/provide credit facilities/credit products to customers.
 Debt counsellors: provide professional advice/counselling to private citizens/ members
of the public/businesses/organisations that are overindebted/offer methods of debt
repayments.
 Discrimination: the intentional unjust/prejudicial/differential treatment of
people/social groups based on the grounds of race/age/gender/sexual
orientation/disability/religion.
 Disputes: an argument/disagreement between people/groups of people in the
workplace.
 Employment contract: a legally binding agreement between the employer and the
employee.
 Equity: fair and equal treatment in the workplace/society.
 Learnerships: theoretical/practical training opportunities that leads to a recognised
occupational qualification.
 Levies: imposition/collection of money by the government, usually in the form of tax.
 Lockout: occurs when the employer prevents (literally locks out) employees from
entering the business premises during strike action and labour dispute resolution
processes to prevent looting and damages to property.
 National Credit Regulator (NCR): the regulatory body that applies the NCA, educates
consumers about their rights, and monitors/administers and ensures adherence of the
NCA and the credit industry.
 organisations/government.
 SETAs: a vocational skills training organisation in South Africa that identifies/
outlines/manages and creates learnerships, internships, and apprenticeships within its
jurisdiction.
 Strikes: partial/complete concerted refusal to work by a group of employees to remedy
a grievance/dispute regarding any matter of mutual interest between the employer and
employees.

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ACTS
Learners should be able to:
Quote/ Explain/Describe
/Discuss the PURPOSE
2021 Examinations
Guidelines Pages 7 & 8
Summary notes on legislation
Skills Development Act (SDA),
1998(Act97 of 1998).
Purpose of SDA
-Develops the skills of South
Africans in order to improve
productivity in the workplace.
-Encourages businesses to
improve the
skills of new and existing
workers.
-Invests in the education and
training of the
South African workforce.
Labour Relations Act, 1995
(Act 66 of 1995)
Purpose of LRA
-Promotes collective
bargaining at the workplace.
-Promotes fair labour
practices between
employers
and employees.
-Established the CCMA,
Labour Court, and Labour
Appeal Court.
Employment Equity Act,
1998 (Act 55 of 1998)
Purpose EEA
-Advocates that employees
who do work of the same or
equal value must be
paid equally.
-Promotes equal
opportunity and fair
treatment for all workers in
the workplace.
- Prevents discrimination
on the grounds of
gender/race/disability in
the workplace.
Basic Conditions of
Employment Act, 1997 ( Act
75 of 1997)
Purpose of BCEA
-Outlines clear terms and
conditions of employment for
employers and employees.
-Provides minimum
requirements for the creation
of employment contracts.
-Regulates and promotes the
right to fair labour practices
as outlined in the Constitution
of South Africa.

Explain/Discuss/Evaluate the
impact of the Acts on
businesses
Positives/ Advantages
And/OR
Negative/Disadvantages
Summary notes on legislation
Advantages SDA
-Increases the number of skilled
employees with scarce skills.
-Improves the return on
investment (ROI) in education
and training.
Disadvantages SDA
-The implementation of the SDA
is time-consuming, expensive,
prescriptive
and administratively
burdensome.
-Productivity in the workplace
may decline,
as employees have to attend
learnerships during work hours.
Advantages LRA
-Ensures the participation of
all parties in the collective
bargaining process, which
reduces conflict in the
workplace.
-Protects the rights of
businesses and employer
organisations in labour
related issues.
Disadvantages LRA
-The implementation of the
LRA may be very costly and
time-consuming, especially
the dispute resolution
process.
-Productivity may decrease
significantly if employees
engage in trade union-related
activities during work hours.
- conducted with the state.
Advantages EEA
- Encourages diversity in
the business by employing
people from various
racial backgrounds.
- Provides all employees
with an equal opportunity
during selections
appointments and
promotions in the
workplace.
Disadvantages EEA
-The implementation of the
EEA is time-consuming,
expensive, prescriptive, and
administratively
burdensome because
employment equity reports
must be submitted to the
Department of Labour
every two years.
-Businesses must submit
employment equity plans
and compliance certificates
before the business can be
Advantages BCEA
-Outlines the minimum/basic
requirements for
employment contracts.
- Specifies work hours to
prevent exploitation of
employees.
Disadvantages BCEA
-The implementation of the
BCEA is time-consuming,
expensive, prescriptive and
administratively burdensome,
especially the drafting of
formal/legal contracts.
-Employers and managers
may not force employees to
work more than 45 hours per
week, which may result in a
reduction in productivity.
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Quote/Explain/Discuss
Action regarded as non-
compliance by various Acts.
Summary notes on legislation
Action regarded as non-
compliance with SDA
-Promoting skills development
unfairly, for
example, where only certain
employees benefit.
-Preventing qualified employees
from gaining access to training
opportunities
and learnerships.
-Preventing employees' access to
learnerships based on
discriminatory
grounds such as pregnancy, age,
position, language, gender,
sexual
orientation, culture, or religion.
Action regarded as non-
compliance with LRA
-Dismissing employees
unfairly or illegally.
-Preventing employees from
participating in legal strikes.
-Preventing employees from
forming and joining trade
unions.
-The training costs of the
business increase because
employees need to be
correctly trained regarding
the implementation of the
EEA.
Action regarded as non-
compliance with EEA
-Treating workers unfairly
and incorrectly promoting
affirmative action in the
workplace.
-Denying people access to
the workplace, based on
the grounds of any form of
discrimination such as
gender, race, culture,
religion, language, and
gender.
-The training costs of
businesses may increase
because employees have to
be trained with regard to the
implication of the BCEA, and
businesses often have
to employ legal specialists.
Action regarded as non-
compliance with BCEA
-Unilaterally changing
information in the
employment contracts by
employers without consulting
employees.
-Preventing employees from
gaining access to
employment contracts.
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 Summary notes on legislation
Outline/Explain/Discuss Penalties/consequences for non-
penalties/consequences for compliance with SDA
non-compliance with Acts.
-Businesses that do not comply
with the SDA may receive a
compliance order from the
Labour Court. This order forces
the business to comply with the
SDA.
-The business’s operating licence
may be revoked, which may
prevent the business from
continuing any form of
operations.
Suggest/Recommend/Advise Ways in which businesses can
ways in which businesses comply with SDA
can comply with Acts
-Display a summary of the SDA
in the business where it is visible
to all employees.
-Provide opportunities for all
employees to improve their
skills.
Penalties/consequences for
non-compliance with LRA
-Businesses that do not
comply with the LRA may
receive a compliance order
from the Labour Court that
forces the business to
comply.
-The business’s licence may
be revoked, which may
prevent the business from
continuing any form of
operations.
Ways in which businesses
can comply with LRA
-Display a summary of the
LRA in the workplace where
is visible to all employees.
-Employees must be allowed
to form trade unions and
participate in trade
union-related activities or
legal strikes.
Penalties/consequences
for non-compliance with
EEA
-The Director-General of
the Labour Court may
agree, amend, or cancel the
compliance order.
-Businesses may be taken
to the Labour Court for a
ruling.
Ways in which businesses
can comply with EEA
-Display a summary of the
EEA in the workplace
where it is visible to all
employees
-Provide equal
opportunities to all
employees in the
workplace.
Penalties/consequences for
non-compliance with BCEA
-Businesses that do not
comply with the BCEA may
receive a compliance order
from the Labour Court, which
forces the business to comply
with the BCEA.
-Businesses may be taken to
the Labour Court for a ruling.
Ways in which businesses
can comply with BCEA
-Ensure that the employment
contracts do not
contravene
any aspect of the
requirements of the BCEA.
-Ensure that employees do
not exceed the stipulated
working hours of 45 hours
per week.
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 Summary notes on legislation

Learners must be able The Compensation for The Broad-Based Black The National Credit Act (NCA) The Consumer Protection Act
to: Occupational Injuries and Economic Empowerment Act (No. 34 of 2005) (CPA) (No. 68 of 2008)
Diseases Amendment Act (BBBEE) (No. 53 of 2003, as
(COIDA) (No. 61 of 1997) amended in 2013)

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Quote/Explain/ Purpose of COIDA
Describe/Discuss the
PURPOSE  COIDA applies to all casual
2021 Examinations and full-time employees
Guidelines Pages 7 & 8 who become
injured/disabled/killed due
to a workplace
accident/disease.
 The type and severity of the
injury will dictate the
medical expenses and other
compensation that will be
paid to employees.
Explain/Discuss Advantages COIDA
/Evaluate the impact
of the Acts on  Promotes health and safety
businesses in the workplace.
Positives/ Advantages
Summary notes on legislation
Purpose of BBBEE
 Enables wealth to be
spread more broadly across
all population groups.
 Increases the number of
black people that
manage/control
South African businesses.
 Allows for the development
of Codes of Good Practice.
Advantages BBBEE
 Businesses that are BBBEE-
compliant will be rated high
on the BBBEE
scorecard/may get
government tenders/may
attract other BBBEE
business partners/suppliers.
Purpose of NCA
 Promotes the responsible
granting of credit by credit
providers.
 Ensures that credit is
equally available to all
qualifying consumers.
 Ensures that consumers
of credit are well informed
about the details included
in their credit contracts.
Advantages NCA
 The NCA protects
businesses against non-
paying customers.
Purpose of CPA
 Promotes fair/accessible
and sustainable places for
producers to sell their
products.
 Provides guidelines for
better consumer
information and prohibits
unfair
business practices.
 Establishes national
standards to protect
consumers regardless of
economic status.
Advantages CPA
 Businesses may gain
increased customer loyalty
and improve profitability
because of compliance with
the CPA.
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 COIDA does provide
compensation for domestic
workers.
 Supplies administrative
guidelines/mechanisms for
dealing with and processing
claims.
AND/OR Disadvantages of COIDA
Disadvantages
 The implementation of
COIDA is time-consuming,
expensive, prescriptive, and
administratively
burdensome – especially
the lengthy claiming
processes/procedures.
 COIDA does not cover
employees in the South
African National Defence
Force.
Summary notes on legislation
 Improves the image of the
business because a good
BBBEE rating attracts more
investors to the business.
 Businesses that focus on
BBBEE show commitment
towards the social/
education/economic
developments in the
community/country.
Disadvantages of BBBEE
 The implementation of
BBBEE is time-consuming,
expensive, prescriptive, and
administratively
burdensome, especially in
attaining BBBEE Scorecard
ratings and training
employees.
 Costs increase as businesses
have to spend money on
the correct compliance with
the five BBBEE pillars to
obtain a good BBBEE rating.
 The correct  Safeguards businesses from
implementation of the dishonest competitors.
NCA leads to more
customers through credit
sales as they are now
protected from abuse and
exploitation.
 Businesses that are  Protects businesses if they
authorised credit are regarded as consumers.
providers may attract
more consumers.
Disadvantages of NCA Disadvantages of CPA
 The implementation of  The implementation of the
the NCA is time- CPA is time-consuming,
consuming, expensive, expensive, prescriptive, and
prescriptive, and administratively
administratively burdensome, especially the
burdensome, especially implementation processes
complex, and expensive and procedures required by
debt collection the CPA.
procedures.
 Failing to comply with the  Consumers can take
NCA may result in legal advantage of businesses
action faced by the and return goods when it is
business. not necessary to do so.
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 Summary notes on legislation

 South Africans who are
temporarily/permanently
employed in foreign
countries are not covered
by COIDA.
 Some processes associated  Businesses that grant  Training costs of the
with BBBEE if not credit recklessly cannot business increase as staff
monitored properly may recover the debt. need to be trained on the
lead to implications of the CPA, and
corruption/nepotism businesses often need to
employ legal specialists that
are knowledgeable of the
CPA to conduct such
training.

Quote/Explain/Discuss Action regarded as non-
Action regarded as compliance with SDA
non-compliance with
Acts.  Refusing to lodge the claims
of domestic workers.
 Failing to disclose all
information to the
Compensation Board when
accidents or injuries occur
for specific c employees.
Action regarded as non- Action regarded as non-
compliance with BBBEE compliance with NCA
 Refusing to award  Refusing to grant
government tenders to consumers credit based
BBBEE-compliant vendors. on any form of
discrimination such as
race, gender, age, religion,
language, culture, or
sexual orientation.
 Employers who fail to  Granting credit recklessly
correctly implement to consumers and failing
affirmative action in the to explain the credit
context of employment contract to consumers.
equity meet BBBEE
responsibilities.
Action regarded as non-
compliance CPA
 Treating customers unfairly
based on any form of
discrimination such as race,
gender, age, religion,
language, culture, disability,
or sexual orientation.
 Charging different and
unfair prices to consumers
for the same goods
and services.

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 Bribing employees not to
report the accident/injury
based on the grounds of
race/religion/culture/
language/gender/sexual
orientation.
Penalties for non-compliance
with COIDA
 Businesses that do not
comply with COIDA may
receive a compliance order
from the Labour Court,
which forces the business to
comply with COIDA.
 Businesses may be forced to
pay recovery costs required
by the compensation fund.
 Employees may take a
Summary notes on legislation
 Employers who promote
unsuitable people into
management positions at
the
the expense of qualified
previously disadvantaged
people.
Penalties for non-compliance
with BBBEE
 Businesses that do not
comply with BBBEE may
receive a compliance order
from the Labour Court,
which forces the business to
comply with BBBEE.
 The state may decide not to
renew business licences,
revoke the business licence,
or refuse to grant
authorisations to conduct
business activities.
 Approved BBBEE-compliant
 Blacklisting customers
without exhausting all
efforts to recover the debt
from the consumer.
Penalties for non-compliance
with NCA
 The business licence may
be revoked for reckless
granting of credit and
gross violations
contravening the (NCA).
 The National Credit
Regulator (NCR) may
impose a fine/penalty on
the
business for non-
compliance.
 The court may declare the
 Denying/refusing
customers proper
information about the
goods and services.
Penalties for non-compliance
with CPA
 Licences of businesses may
be revoked for unfair
consumer practices.
 Businesses that do not
comply may receive a
compliance order that
forces the
business to comply
with the CPA.
 A business may be
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 Summary notes on legislation

business to court for not
registering with the
Commissioner of the
Compensation Fund.
vendors will withdraw their granting of credit by the
contracts with non- business as reckless and
compliant may order consumers not
businesses. to repay the credit/or part
thereof to the business.
requested by the NCC to
suspend activities
indefinitely.

Suggest/ Ways in which businesses can
Recommend/Advise comply with COIDA
ways in which
businesses can comply  Display a summary of
with Acts COIDA in the workplace
where it is visible to all
employees
Ways in which businesses can
comply with BBBEE
 Conduct regular skills
development training with
black employees.
Ways in which businesses can
comply with NCA
 Register the business with
the National Credit
Regulator (NCR).
Ways in which businesses can
comply with CPA
 Allow consumers a five-day
cooling-off period in the
sales agreement.

 Register with Compensation  Conduct business activities
Board and Compensation with BBBEE compliant
Commissioner. vendors/suppliers/participa
te in preferential
procurement.
 Provide and enhance the  Sell shares to more black
capacity to promote health individuals within and
and a safe working outside the organisation.
environment.
 Submit annual compliance
reports to the NCR.
 Conduct affordability
assessments to ensure
that consumers can meet
their obligations.
 Disclose the prices of all
products that are on sale.
 Conduct training with all
staff members and
stakeholders on the CPA.

 Report all accidents,  Appoint and promote more  Verify the identity of  Display the name of the

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 Summary notes on legislation

injuries, illnesses, and black employees into clients and report business and all business
fatalities to the managerial positions. suspicious documentation, for
Compensation transactions/train staff on example,
Commissioner as they their obligations in terms letterheads/invoices/contra
occur. of FICA. cts.

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 Summary notes on legislation

1.1 SETAs (Sector and Education Training Authorities) in supporting/implementing the SDA

A SETA is a vocational skill training organisation in South Africa that outlines/manages and
creates learnerships, internships, and apprenticeships in the various business sectors.
1.1.1 Learnership
Elaborate on the meaning of learnership on page 7 of Examination Guidelines
 Learnerships are theoretical/practical training opportunities that lead to a
recognised occupational qualification.
 They provide structured learning programmes that are completed during work
hours for a specified period.
 It includes a training course with learning material as well as practical work
experience.
 Agreement between a learner/trainee, employer, and training provider.
 It may sometimes include employment for a specified period after the learnership
is completed.

1.1.2 Outline/Explain/Discuss the role/functions of SETAs in supporting SDA

 register various learnerships and learning programmes.
 Promote and establish various learnerships.
 promote learnerships and learning programmes by correctly identifying the best
workplaces for practical work experience.
 approve the workplace skills plans and annual training reports submitted by
businesses.
 develop skills plans that are in line with the aims of the National Skill
Development Strategy (NSDS).
1.1.3 SETAs
Explain how SETAs are funded page 7 Examination Guidelines

 Donations/Grants received from the public/businesses/CSI programmes.

 Surplus funds from government institutions.
 Funds received from rendering their services.
 Employers who have a salary bill that exceeds R500 000 per annum, should
pay one per cent (1%) of their annual salaries as a levy.
 Skills Development levies are paid by employers to SARS as a collecting agency
for the government.
1.1.4 Explanation of the National Skills Development Strategy(NSDS)
 Increases access to programmes that train people.
 Builds career/vocational guidance/training centres.
 Addresses the low level/deficit/shortage of language and mathematical skills
among the youth and adults.
 Makes better use of/enhances/improves workplace-based skills development.
 Sets out/outlines the responsibilities of other education and training
stakeholders.

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 Summary notes on legislation

1.1.5 Explanation of the Human Resources Development Strategy (HRDS)

 Improves the supply of skills, which benefits the country directly.
 Addresses skills shortages in the South African workplace.
 Promotes social development/social justice and helps to reduce poverty.
 Achieves faster economic growth/higher employment levels and reduces the
poverty level in South Africa.

1.1.6 Rights of employers and employees in terms of the LRA

Rights of the employers Rights of employees

dismiss employees who engage in
unprotected strikes/misconduct such as
violence or intimidation during strike action.
recourse a lockout during periods when
employees engage in unprotected/
illegal/wildcat strikes/labour action.
form employer organisations.
dismiss employees who engage in
unprotected strikes/misconduct such as
violence or intimidation during strike action.
join a trade union of their choice.
embark upon legal strikes as a remedy for
grievances.
establish a workplace forum where a
business has 100 or more employees to
resolve work-related issues.
refer unresolved CCMA disputes to the
Labour Court for an appeal.
refer unresolved workplace disputes to the
Commission for Conciliation,
Mediation and Arbitration (CCMA).

Identify the provision of BCEA from a given scenario

Outline/Explain/Describe/Discuss the provisions of the BCEA.

1.1.7 The provisions of the BCEA

PROVISION DISCUSSION
Hours of work/ work hours - Employees are not allowed to work for more than
45 hours per week.
- Employees may work 9 hours a day if they work -FIVE
days or less per week.
- Employees may work 8 hours a day if they work more
than FIVE days a week.
Overtime - Employees cannot be forced to work overtime but must
agree to work overtime.
- Employees cannot work more than 3 hours of overtime
per day or 10 hours per week.
- 1½ times/One and a half times the normal rate of pay for
overtime worked on weekdays and Saturdays.
Meal breaks and - Employees must have a meal break of 60 minutes after 5
rest periods continuous hours of work.
Termination of - An employment contract may only be terminated

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 Summary notes on legislation

Employment following 1 weeks’ notice if the employee has been

employed for 6 months or less.
- A minimum of 4 weeks' notice must be given to the
business if the employee has been employed for a year or
longer.
- The employee must be given formal notice in writing if
Termination of the employer has terminated the contract,
employment - The employee must give the employer formal
notice in writing for terminating the contract.
Child and - It is illegal to employ a child younger than 15 in South
forced labour Africa.
- It is also illegal to force an employee to work.
- Businesses may employ children over the age of 15 if
employment is not harmful to their
well-being/health/education/moral and social
development.
- Minors under the age of 18 may not engage in dangerous
work/work meant for an adult.
Public holidays - Employees must be paid for any public holiday that falls
on a working day.
- Employees may work on public holidays when there is a
mutual agreement, and they are paid 2
times/twice/double their normal rate
Annual leave
Employees are entitled to: - 21 consecutive days of annual leave per year.
- 1 day for every 17 days worked/1 hour for every 17
hours worked.
- An employer can only pay a worker in lieu/instead of
granting leave if that worker leaves the job/terminates
the employment contract.
- Annual leave must be granted within 6 months after the
leave cycle ended.
Sick leave - 30 days/6 weeks paid sick leave in a 3 year/36 months
Employees are entitled to: cycle.
- 1 day paid sick leave for 26 days worked during the first 6
months of employment.
- A medical certificate may be required before paying an
absent employee
- for more than 2 consecutive days/who is frequently
absent.
- Thereafter, they may take all 30 days of sick leave,
provided they meet the legal requirements.
Maternity leave - Pregnant employees are entitled to four/ 4 consecutive
months of maternity leave.
- Pregnant employees are prevented from performing work
that may be hazardous to themselves and the unborn
child.
- Maternity leave usually commences any time from four/4
weeks before the expected date of birth of the unborn
child under the advice of a doctor/midwife.

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 Summary notes on legislation

Parental leave - An employee irrespective of gender, who is a parent, is

Family responsibility leave
entitled to 10 consecutive days of parental leave after the
birth of his/her child.
- Parental leave is unpaid, but the employee/parent may
claim from the Unemployment Insurance Fund/UIF.
- The employer must be informed/notified at least one
month before the expected due date of birth.
- Adoption leave applies to the adoption of a child below
the age of 2 years.
- One parent of the adopted child is entitled to 10 weeks of
adoption leave to
- An employee may receive 3 to 5 days paid leave per year
on request, in the event of the death of the employee’s
spouse/life partner/parent/adoptive parent/
grandparent/child/adoptive child/grandchild/sibling.
- An employer may require reasonable proof – before
approving this type of leave such as a death certificate of
the family member whose funeral will be attended.

1.1.7 Distinguish/ Differentiate between Black Economic Empowerment (BEE) and Broad-
Based Black Economic Empowerment Act (BBBEE).

Black Economic Empowerment (BEE) Broad-Based Black Economic

- A government policy that may not
always be enforced.
- Benefitted only a few previously
disadvantaged people in the economy.
- This resulted in a few previously
disadvantaged individuals sharing in
the wealth of the economy.
- Focused only on THREE pillars that
did not include all previously
disadvantaged people.
Empowerment Act (BBBEE)
- An Act that is enforced/must be
complied with by businesses.
- Encourages a wider group of previously
disadvantaged people – which
includes black women, people who
are physically challenged, youth, and
people in rural areas – to participate in
the economy.
- Aims to distribute the country’s wealth
across a broader spectrum of society.
- Focuses on FIVE pillars – which include
all sectors of society – especially the
previously disadvantaged people and
previously disadvantaged communities.

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1.1.8 Application and implications of the revised BBBEE pillars

Recommend/Suggest ways in which businesses could apply pillars of BBBEE in the
workplace.

BBBEE PILLARS APPLICATION

1. management Business should:
control - Appoint black people in senior executive positions/to
management.
- Involve black employees in decision-making processes.
- Ensure and prioritise black female representation in
management.
- Ensure that transformation is implemented at all levels.

2. Ownership Business should:

- Include black people in shareholding.
- Create more opportunities for black people to become
owners and entrepreneurs.
- Encourage small black investors to invest in big
companies and share ownership.
- Exempted Micro Enterprises (EMEs) that have an
ownership of 50% or more of black people in
management are automatically promoted to Level 3 of
the BBBEE scorecard.
3. Enterprise and Business should:
supplier - Create jobs as ESD promotes and supports local
development (ESD) manufacturing.
- Encourage and invest in and support black-owned Small
Medium and Micro Enterprises (SMMEs).
- Make monetary contributions to BBBEE compliant
businesses and SMMEs, such as
loans/donations/investments.
- Also, make non-monetary contributions to BBBEE
compliant businesses and SMMEs such as advisory
services/consulting services/entrepreneurial
programmes.
4. Skills Development Business should:
- Provide learnerships and learning programmes to black
employees.
- involve black employees in various skills development
training programmes and initiatives.
- Contribute 1% of their annual payroll if the payroll
exceeds R500 000 to fund the skills development
programmes.

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5. Socio-economic Business should:

development/Social - Distribute scarce CSI resources to selected beneficiaries
responsibility in the community.
- Contribute towards social investment projects and
community development.
- Focus on critical areas of CSI such as development in the
country, for example, environmental awareness/
education/housing/poverty/unemployment, and so on.

1.1.9 Outline/explain/Describe/Discuss the rights of consumers in terms of the National

Credit Act (NCA)
The rights of consumers in terms of the NCA
Consumers of credit have the right to:
- refuse a credit limit increase.
- fair and responsible credit marketing.
- receive information in plain and understandable language.
- receive documentation as required by the NCA.
- receive protection of their personal information.
- apply for credit and to be free from discrimination of any form.
- obtain reasons for credit being refused by credit providers.
- receive pre-agreement documentation before concluding any credit transaction.
- access and challenge credit records and information held by the Credit Bureau.
- surrender/return goods to the credit provider to settle the outstanding
- amount/debt.
- apply for debt review/counselling if the consumers cannot afford to repay
- their debts.
- receive protection from being held accountable for the use of their credit
- facility after they reported the loss/theft.

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 Summary notes on legislation

1.1.10 Consumer Protection Act

Identify the rights of consumers in terms of CPA from a given statement
Outline/explain/Describe/Discuss the rights of consumers in terms of the Consumer

RIGHTS OF DISCUSSION
CONSUMERS IN TERMS
OF CPA
Right to choose Consumers have the right to:
- Choose suppliers and goods and services.
- Shop around for the best prices and then make informed choices.
- Return goods that are unsafe/defective for a full refund.
- Request written quotations and cost estimates.
Right to fair and honest - Suppliers may not use physical force/harass consumers to buy
dealings products.
- Businesses may not overbook/oversell goods/services and then
dishonour the agreement.
- Businesses may not promote pyramid schemes and chain-letter
schemes.
Right to information Businesses must:
about products and - Ensure that contracts/agreements should be in plain language,
agreements/Right to that is simple and easy to understand.
disclosure and - Label product and trade descriptions accurately.
information - Display prices that are fully inclusive/disclosing of all costs.
- Charge consumers a lower price if the two different prices for the
same product are displayed.
Right to - Businesses should disclose all information related to the country
fair/responsible of origin, and expiry dates/ingredients of the products.
marketing/ - Businesses should not deliberately mislead consumers on pricing,
promotion benefits/uses of goods.
- Businesses should not deliberately mislead consumers on pricing,
benefits/uses of goods.
Right to accountability - Suppliers in possession of any prepaid certificates/credit vouchers
from suppliers must not treat such property as theirs and must exercise
care/diligence and skill/and assume liability for any losses suffered
by consumers in this regard.
- Consumers have the right to be protected in lay-bye agreements.
Right to Consumers have the right to:
fair/just/reasonable - Protection against unfair, unreasonable, or unjust contracts t
terms and conditions - Businesses should provide consumers with written notices of
clauses that may limit consumer rights.
- Businesses may not market/sell goods at unfair prices to
consumers.
Right to equality in - Businesses may not charge different prices for the same
the consumer goods/services.
market place - Businesses should not limit access to goods and services in the
consumer market.
- Businesses may not charge different prices for the same
goods/services when marketing their products and services in
different areas/places.

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