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HR employees' perceptions regarding the changes in section 198B of the Labour Relations ActLedwaba, Melton 26 October 2018 (has links)
South Africa’s labour legislation has recently undergone momentous changes, in
particular, the changes relating to section 198B of the Labour Relations Act (LRA) 66 of
1995. These amendments have proven to be more contentious than any other changes
implemented by government in past years. The purpose of this study is to examine and
outline the specific implications that the amendments to legislation regarding fixed-term
contracts have on a pension and provident fund company in Gauteng, South Africa. This
research will therefore highlight the implications (positive and negative) concerning the
changes to section 198B on a pension and provident fund organisation in Gauteng, South
Africa.
The qualitative investigatory study was conducted with six employees of a pension and
provident fund company which makes use of fixed term contract employees, until data
saturation was reached. The data was collected by means of individual in depth
interviews. The results of the study clearly indicate that the changes to section 198B will
have both negative and positive implications. Some of the negative implications are that
organisation have had to incur increased employment costs as a result of having to
provide equal benefits and conditions of employment to all fixed term contract employees.
Organisations now have to review the necessity of deploying fixed term contracts and
where required to do away with such contracts. The implication here is that, the
employment flexibility which organisations previously had has now been removed.
Some of the positive implications are that, a few employees who had been on fixed term
contracts were employed on a permanent basis after the changes came into effect.
Employees experienced greater job security and were offered much needed benefits such
as medical aid, pension and disability benefits. Permanent and fixed term contract
employees are now treated equally. Part-time employees have better job security and the
enhanced ability to enforce statutory rights in terms of equal treatment in employment by
evoking enforcement mechanisms such as the Commission for Conciliation, Mediation
and Arbitration (CCMA), labour courts and bargaining councils with jurisdiction to arbitrate
matters. / Business Management / M. Com. (Business Management)
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