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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
The Labour Relations Act grants employees several key rights:
- Right to Join a Union: Employees are permitted to join a trade union of their choice without employer interference.
- Embarking on Strikes: Employees reserve the right to embark on lawful strikes as a means of voicing grievances.
- Representation: Employees can seek representation in grievance and disciplinary hearings, ensuring they have support during disputes.
- Fair Wages: Employees must be compensated reasonably for their work, as outlined by both national and sectoral agreements.
- Job Security: The LRA promotes procedures to ensure fair employment practices and protection against unfair dismissals.
Step 2
Explain the purpose of the Labour Relations Act.
Answer
The purpose of the Labour Relations Act is to create a structured framework for effective labor relations between employees, employers, and trade unions. The Act aims to facilitate collective bargaining, promote equitable practices, and maintain labor peace within workplaces. Furthermore, it establishes procedures for dispute resolution, ensuring conflicts can be addressed efficiently, thus preventing unnecessary strikes and productivity loss. It also enforces systems for the registration of trade unions and employer organizations, promoting compliance with labor agreements and enhancing workers' rights.
Step 3
Discuss the impact of the Labour Relations Act on businesses.
Answer
The Labour Relations Act has significant impacts on businesses:
Positive Impacts:
- It fosters a collaborative relationship between employers and employees, which can enhance workplace morale and productivity.
- By providing a clear framework for addressing grievances, it can reduce the number of disputes and help in avoiding costly strikes.
Negative Impacts:
- Businesses may experience reduced productivity during strike actions.
- Compliance with the LRA can introduce higher administrative costs due to necessary adjustments in workplace policies and practices.
- Some smaller businesses might find it challenging to navigate the legal complexities introduced by the Act, potentially leading to compliance issues.
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 severe penalties, such as:
- Fines: Non-compliance can lead to significant fines imposed by labor courts or regulatory bodies.
- Legal Costs: Businesses may incur additional legal expenses due to disputes that arise from non-compliance, including potential compensation claims.
- Forced Compliance: Employers may be compelled to enter into mandatory dispute resolution processes, which may disrupt regular operations.
- Damage to Reputation: Non-compliance can damage a business’s reputation, impacting employee relations and customer perceptions.