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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 several rights under the Labour Relations Act. They are entitled to:
- Join a trade union of their choice to ensure representation and collective bargaining.
- Participate in lawful strikes as a means of addressing grievances and negotiating better working conditions.
- Be provided with reasonable notice regarding their pay and working conditions.
- Engage in voluntary measures to resolve disputes through designated representatives.
- Request representation during disciplinary proceedings, enhancing their right to fair treatment in the workplace.
Step 2
Explain the purpose of the Labour Relations Act.
Answer
The Labour Relations Act aims to provide a structured framework for fostering sound labor relations. Key purposes include:
- Promoting collective bargaining at both workplace and sectoral levels.
- Establishing mechanisms for the registration of trade unions and employer organizations to facilitate representation.
- Ensuring job security through fair employment practices and protecting workers' rights.
- Creating a platform for dispute resolution, thus minimizing industrial action that disrupts productivity.
Step 3
Discuss the impact of the Labour Relations Act on businesses.
Answer
The Labour Relations Act has both positive and negative impacts on businesses:
- Advantages: It helps establish clear guidelines for employment relationships, thus fostering a cooperative work environment. Compliance can enhance a company's reputation and employee morale.
- Disadvantages: It may lead to complexities in handling disputes and can result in decreased productivity due to prolonged negotiations or strikes. Moreover, some employers feel the Act grants excessive power to employees, complicating management.
Step 4
Advise businesses on penalties they may face for non-compliance with this Act.
Answer
Businesses may face serious penalties for failing to comply with the Labour Relations Act, such as:
- Financial fines for violating agreements made with employees or trade unions.
- Legal costs associated with defending claims raised against them in labor disputes.
- Orders from the Labour Court to rectify breaches, which may include compensating affected employees.
- Potential damages to the company’s reputation, leading to decreased employee trust and morale.