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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 the right to join a trade union for representation. They can also embark on legal strikes as a means of expressing grievances. In addition, employees have the right to fair treatment during disciplinary actions, which includes being informed of the matter, having access to representation, and being able to appeal decisions. Lastly, the Act provides for a process to resolve disputes through the Commission for Conciliation, Mediation, and Arbitration (CCMA) and ensures that employees are protected from unlawful dismissals.
Step 2
Explain the purpose of the Labour Relations Act.
Answer
The Labour Relations Act aims to promote fair labor practices and to establish a framework for collective bargaining. It facilitates the relationship between employers, employees, and trade unions to ensure peaceful workplace relations. The Act provides mechanisms for dispute resolution, including setting up labor courts and procedures for handling complaints. Further, it emphasizes the importance of social justice in labor relations by ensuring that employees are aware of their rights and can seek redress for violations.
Step 3
Discuss the impact of the Labour Relations Act on businesses.
Answer
The Labour Relations Act encourages a collaborative relationship between employers and employees, enhancing workplace morale and productivity. By establishing clear guidelines for fair treatment and dispute resolution, the Act reduces the likelihood of work stoppages and legal conflicts. However, compliance also requires businesses to invest time and resources in understanding labor laws, which can be burdensome for small businesses. Additionally, businesses may face challenges from union negotiations and potential strikes if relations deteriorate.
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 significant penalties, including being obligated to enter into dispute resolution processes. They might incur fines for not adhering to agreements made during these processes. Additionally, the Act mandates that employers compensate employees for breaches of their rights, which can result in substantial financial liabilities. Ultimately, failure to comply can lead to damaging litigation and the loss of goodwill among employees and the community.