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The Labour Relations Act (LRA), 1995 (Act 66 of 1995) makes provision for the rights of employees in the workplace - NSC Business Studies - Question 5 - 2022 - Paper 1
Question 5
The Labour Relations Act (LRA), 1995 (Act 66 of 1995) makes provision for the rights of employees in the workplace. Businesses are expected to have a sound knowledge... show full transcript
Worked Solution & Example Answer:The Labour Relations Act (LRA), 1995 (Act 66 of 1995) makes provision for the rights of employees in the workplace - NSC Business Studies - Question 5 - 2022 - Paper 1
Step 1
Outline the rights of employees in terms of the Labour Relations Act.
Answer
Employees have various rights under the Labour Relations Act, including the right to:
- Join a trade union and participate in its activities.
- Embark on legal strikes as a method to address grievances.
- Engage in collective bargaining to negotiate terms and conditions of employment.
- Fair treatment during grievance and disciplinary processes, including the right to representation.
- Seek assistance from the Commission for Conciliation, Mediation and Arbitration when disputes arise.
Step 2
Explain the purpose of the Labour Relations Act.
Answer
The primary purpose of the Labour Relations Act is to provide a framework for sound labor relations between employees, employers, and trade unions. It aims to promote organizational peace and stability through:
- Establishing clear guidelines for collective bargaining and negotiations.
- Ensuring fair procedures are in place for dispute resolution.
- Protecting employees’ rights and encouraging their participation in organizational matters.
- Facilitating effective communication between employers and employees to prevent conflicts.
Step 3
Discuss the impact of the Labour Relations Act on businesses.
Answer
The Labour Relations Act has significant implications for businesses, including both positive and negative impacts:
- Positive impacts include the promotion of fair labor practices which can lead to improved employee morale and productivity.
- Businesses can benefit from structured dispute resolution processes, which can prevent costly legal battles.
- However, negative impacts may arise such as increased operational constraints and compliance costs. Businesses may also face disruptions from strike actions, which can affect productivity and profitability.
Step 4
Advise businesses on penalties they may face for non-compliance with this Act.
Answer
Businesses that fail to comply with the Labour Relations Act may face several penalties, including:
- Legal actions that may lead to financial penalties or forced compliance orders.
- Damage claims from employees arising from unfair labor practices or non-compliance.
- Potential reputational damage which can arise from negative publicity surrounding legal proceedings.
- Fines imposed by regulatory bodies if businesses are found to be in violation of established labor standards.