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Poor Sick Leave Management Is Affecting The Health Of Businesses – CRS Technologies

Sick leave in business requires effective management; its mismanagement or abuse can be detrimental to any company in terms of financial and employee performance.

CRS HR And Payroll Solutions

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Sick leave in business requires effective management; its mismanagement or abuse can be detrimental to any company in terms of financial and employee performance.

A dictionary definition of sick leave is “an absence from work permitted because of illness and the number of days per year for which an employer agrees to pay employees who are sick”.

According to the Basic Conditions of Employment Act (BCEA) an employee is – during every sick leave cycle – entitled to paid sick leave equal to the number of days the employee would normally work during a period of six weeks.

The provisions for sick leave do not apply to:

  • Employees who work less than 24 hours a month
  • Employees who receive compensation for an occupational injury or disease
  • Leave over and above that provided for by the Act.

The BCEA prescribes that in the case of standard employment i.e. a 5-day working week, the employee would be entitled to 30 days paid sick leave during each sick leave cycle.

Related: Family Responsibility Leave – Know The Law Says CRS Technologies

A sick leave cycle is calculated from the date of engagement up to the 3rd anniversary of that date; in other words, for employees with a 5-day working week an employee is entitled to 30 days sick leave every 3 years. This sick leave does not accumulate from cycle to cycle, after each cycle. All unused sick leave is forfeited.

It is important to understand that sick leave is given by statute as an entitlement; it does not accrue.  It is also a form of contingency, so if, even early in their service, an employee requires extended sick leave, the whole thirty days may be taken. In the event that the employee leaves, the employer cannot claim the sick leave back.

However, the BCEA makes provision for this, by limiting paid sick leave during the first six months of employment to 1 day for every 26 days worked. The employer may thus draft the employment contract with this provision, whereafter the three year cycle will commence from day 1, month 7.

It should be noted that the BCEA protects the employer and makes provision for the employer to require proof of illness or injury when an employee has taken sick leave.

If, however, the employee has been absent from work for more than two consecutive days or on more than two occasions during an eight-week period and the employee is unable to provide a medical certificate on the employer’s request, the employer is not required to pay the employee for the absence.  The medical certificate substantiates a claim for paid sick leave.

This is applicable to most industries with some variations in industries regulated by bargaining councils, sectoral determinations or other agreement regulated by law.

The Metal and Engineering Industries Bargaining Council Sick Pay Fund (MIBFA) provides for additional sick pay-benefits for each completed day of absence from work through illness and injury which is in excess of the paid sick leave entitlement. Additional sick-pay benefits are payable at a rate of 50% of the weekly earnings of a member for each completed week of absence from work.

Furthermore where a member’s absence from work is not a complete week, sick-pay benefits shall be calculated PRO-RATA for each complete day of absence. This amount is payable up to maximum of 30 weeks.  In other words, once an employee’s 30 days paid sick leave has been depleted he/she is entitled to 50% of their wages paid by MIBFA up to a maximum of 30 weeks.

Although little has changed in terms of sick leave regulation (since the minimum was changed from 10 days per year to 30 days in 3 years in 1997), Human Capital Management (HCM) and HR experts are concerned about the efficiency with which this facet of HR management is being handled.

Related: Leave In Business – Critical To Understand Flexibility Says CRS Technologies

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The issues

Nicol Myburgh, Head of HR Business Unit at HR and HCM specialist services provider CRS Technologies, says many employers either grant sick leave and never follow up to obtain a medical certificate or grant sick leave indefinitely without capturing and tracking this on a system to ensure availability of leave before granting it.

“Another mistake employers make is accepting a medical certificate as proof for sick leave without making sure if the employee was actually “booked off” for the full period of absence,” says Myburgh.

Again CRS Technologies points to the BCEA and specifically the clause which states that the medical certificate must be issued and signed by a medical practitioner or any other person who is certified to diagnose and treat patients, and who is registered with a professional council established by an Act of Parliament.

Another issue is that sick leave entitlement poses a risk to employers, Myburgh explains.

The key message from CRS Technologies is only an employee who is too sick to work, may claim paid sick leave. If the employer is in a position to prove that the employee was not sick, disciplinary steps may be taken against the employee.

“Sick leave abuse is difficult to determine and prove, many factors should be considered before an employer makes a claim of sick leave abuse for instance. The amount of time taken for each absence, the specific days that are taken (the day before or after a weekend or public holiday) or any inconsistencies for each staff member should be taken in to account, says Myburgh.

CRS HR & Payroll Solutions is a provider of services and solutions to the Human Resources and Payroll markets in Africa in general and South Africa in particular. Established in 1985, the company has served as the premier provider of HR systems, solutions and remuneration products to business across expanding market segments. Our product portfolio encompasses everything the decision maker in business requires to support the rollout of an effective HR and payroll strategy. The company’s foremost reputation as a reliable service provider and trader in rapidly expanding market segments and to blue chip companies is underpinned by its affiliation and partnership with a number of respected, industry-regulatory bodies. CRS is a signatory to the Information Technology Association (ITA) and a member of the Payroll Authors Group of South Africa. It is also a member of the South African Payroll Association, South African Rewards Association and the Institute of People Management. Its expertise and business acumen within these mission-critical aspects of business management have ensured that it remains an ultra-competitive, secure and unrivalled market performer. CRS provides a service to numerous countries throughout Africa, including Egypt, Kenya, Nigeria, Namibia, Botswana, Swaziland, Lesotho and Mozambique. The continent is viewed as being a thriving, high-growth market and one that the company will continue to add value to.

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Forever Learning, Discovering And Empowering

From work-life balance to finding the right support, Constance Kawelenga CA(SA), director and owner of Zuva Financial Services, shares her top tips on how to manage a successful business as a sole proprietor.

SAICA

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“Every business has its own slice of the market; one just needs to define their service offerings and target market.”

“When I established Zuva Financial Services, it was under the ‘illusion’ of a work-life balance. I say ‘illusion’, because when you work for yourself, you put in just as many hours, if not more, than when you work for someone else.

“I also wanted the flexibility to be able to shape my working space around my own lifestyle and family, and not to have to account to anyone else. The rigorous training to become a chartered accountant taught me to be highly disciplined. That means when I work for my own business, I am just as tough on myself, if not tougher, than any boss would have been in a different setting. The plus for me is that I am able to be there for my family when I need to be, and compensate for this in a way that best suits my lifestyle.”

Being your own boss has its pros and cons. However, for Constance, it is all worthwhile. Setting targets for her business every year and achieving those targets is deeply satisfying. Again, this is something she attributes to her training — she values client success and feedback.

“Whenever I get affirmation from clients regarding the value that we are adding to their business, and they refer other clients to us, I celebrate those achievements. The growth of Zuva Financial Services’ has resulted mostly from referrals or word of mouth and that, to me, is a testimony to the value that our clients place on our services.”

Related: The Power Of Finding Your Why

Overcoming a lack of internal support

The hardest thing about being the owner of Zuva Financial Services for Constance is the lack of an internal support structure. However, Constance has developed a network of technical specialists that she can call upon to consult. She agrees that technical support remains the toughest challenge of being a sole practitioner.

“We offer a mixed bag of services such as accounting, taxation, secretarial, payroll and even Black Economic Empowerment consulting. Additionally, I have audit clients — some in industries with specific reporting requirements such as estate agents and attorneys working with trusts. On a smaller scale, the breadth of services is almost the same as those offered by bigger firms. The difference is that I don’t have the internal resources such as a technical department.

Prior to establishing Zuva Financial Services, Constance spent six years in audit, mostly in Zimbabwe, but also in Botswana and South Africa. Since then, she has also been exposed to other financial roles, where she fulfilled financial management roles for different organisations such BMW Financial Services.

Constance advises those aspiring to follow in her footsteps and open their own companies not to overthink it, or doubt themselves.

Related: Can Computers Replace Human Accountants? We Doubt They Can

Don’t overthink it

”It took me such a long time to take my first step because I could not believe that I would be able to build up a client base. Today, there are times when I am overwhelmed by the workload on my plate. It reminds me of my mother-in-law’s advice when I started my business. She told me that every business has its own slice of the market; one just needs to define their service offerings and target market.”

Constance describes herself as “forever learning, discovering and empowering.” She adds: “We each have a unique walk in life — ours is to boldly step out and embrace it”.

Visit www.saica.co.za

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TuksNovation – Accelerated Innovation With The University of Pretoria

The University of Pretoria’s high-tech business incubator will be launched on the 6th of August by Minister Zulu, Department of Small Business Development at UP – Hatfield Campus, to alleviate the serious challenges related to unemployment South Africa is faced with.

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According to Trading Economics (2017), the youth unemployment rate in SA is extremely high at 55,9%. The University of Pretoria is aware of this challenge and has embarked on launching a high-tech business incubator and accelerator.

This business technology incubator, known as TuksNovation, will promote job creation by providing support for the commercialisation of technology, networking, mentoring and sustainable spin-off technology companies.

Fuelling the economy

In a knowledge-driven economy, universities play a major role in regional socio-economic development. Innovations arising from a university’s intellectual capital can stimulate economies through new product development. Universities are therefore highly valued in terms of economic potential.

Although the creation of spin-offs is one of the key mechanisms that universities can leverage to promote socio-economic development, few universities in South Africa have done so, and the impact has been very modest. This low success rate can be attributed to the absence of an entrepreneurial culture, limited access to funding, as well as technology transfer offices at universities that lack critical skills and capacity.

Related: The Power Of Life-Long Learning with University of Pretoria

The elements of success

TuksNovation is based on the triple helix model of Etzkowitz and Leydesdorff (1995). According to the University of Stanford Human Sciences and Technologies Advanced Research Institute (H-STAR) (2011), the triple helix concept comprises three basic elements:

  1. It allows universities to play a more prominent role in innovation, on par with industry and government in a knowledge based society.
  2. There is a movement towards collaborative relationships among the three major institutional spheres, in which innovation policy is increasingly an outcome of interaction, rather than a prescription of government.
  3. In addition to fulfilling their traditional functions, each institutional sphere also performs 34 new roles. Institutions that are currently taking on non-traditional roles are viewed as a major potential source of innovation.

Over the long-term, the business incubator aims to enable the development of industrial clusters with a positive economic impact in Tshwane. It is set up in partnership with the Department of Small Business Development’s Small Enterprise Development Agency (SEDA). 

How it works

TuksNovation aims to build strong networks among academia, government and industry to create new spin-offs that can benefit society. According to Prof Elma van der Lingen, Chairperson of the Graduate School of Technology Management (GSTM) at the University of Pretoria, the TuksNovation model is based on allocating seed funding to students who are keen to become entrepreneurs and are conducting research on projects that have the potential to develop commercially viable technology.

“Annual TuksNovation competitions will be held on campus and interested students will be able to participate in order to qualify for TuksNovation seed funding to develop their ideas into commercial products,” she says.

The competitions will have strict guidelines and will be evaluated by a committee comprising mainly representatives from industry and technopreneurs. The technology development phase of the projects will be conducted in a virtual incubator in the University’s laboratories and at facilities at local industries.

The students will receive expert technical guidance from academics at the University, as well as technological entrepreneurship training. Various in-kind contributions will also flow from building strong industry networks.

Some benefits from this relationship could include:

  • The use of industry facilities
  • Research on industry-related problems
  • Employment for students and mentorship.

Related: Small Enterprise Development Agency (Seda)

Funding for the business phase of the projects is secured from external funders, such as venture capitalists, investors, and corporations.

Students with commercially viable technology will make pitches and submit business plans to potential investors in order to secure funding. SEDA covers the incubator’s initial operational costs. TuksNovation will initially support the development of spin-offs in the Faculty of Engineering, Built Environment and Information Technology, but will expand to other faculties involved in science and technology at UP, depending on the availability of funding.

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Knowing The Basics Is Not Good Enough Anymore

Being able to confidently speak and write in English has never been so important. Using the right words in the right way can make a massive difference to any company.

Wits Language School

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Do you know the difference between “organize” and “organise”? Do you believe “device” and “devise” are the same thing? Do you think a comma and a semicolon could be used interchangeably? Why is “talk about” considered informal language? How does one create cohesion in your writing?

Few people in the business sector ask these questions; it could be because they do not focus on the language they use in business correspondence or, as second language speakers of English they do not know the answers. With many pupils in South Africa receiving basic education in their mother tongue, many enter the business sector not knowing the basic rules of how to articulate an idea coherently or cohesively. It is often when they are asked to compile a formal business report or prepare a presentation that few realise the importance of upskilling their English proficiency.

At the Wits Language School’s English Communication for Professional Development unit, that is the main focus: Enhancing participants’ English language skills for the business environment in an interactive manner. Whether you need to go back to the basics; learn how to write and edit emails, proposals, memos, minutes or reports; enhancing your speaking and pronunciation skills in order to deliver confident presentations; or practise your critical thinking skills when using English in your everyday life, there is the right course to fit your needs and help you climb that corporate ladder by focusing on what many regard as a “soft skill”.

Related: Tips To Becoming Fluent

Business English students can generally be classified into two sections: those who recognise the need to address their language skills, and those who believe they do not need any language training. The first group often walks into a class not knowing what to expect and leave with more confidence in their English spoken and written forms. The second group leaves the class understanding language structures better and rely more on grammar and writing rules than on what “sounds right”. Regardless of the group you might fall in, participants who successfully complete the courses gain knowledge, understanding, confidence, a higher aptitude in English and critical analysis of the language they are expected to converse in.

Take for example the following sentences – “I write reports”, “I am writing a report”, “I wrote a report”, “I have written a report”, “I have been writing a report” and “I had written a report”. Although all of these sentences are grammatically correct, they are very different in meaning and intention. “We could invest”, “We must invest”, “We might invest” and “We should invest” indicate different intensities and degrees, and “Please see attached” is better than writing “Kindly see attached”. One should avoid using a colon after a verb or preposition when you list things, and “U.S.A.” and “USA” refer to two different writing styles (one of which is preferable in South Africa).

Today, many companies are recognising the importance of English in the workplace as a way to create better internal and external communication, as well as creating uniformity in general forms of correspondence and business documents. While some companies offer their staff financial assistance in upskilling themselves, other companies opt to complete training as a group. With classes being presented in a communicative and fun way, English training has never before been made more accessible and exciting. Public classes run every Saturday over a 10-week period, while more customised corporate training takes place during the week at a time and place convenient for the client. Participants often comment that they start to analyse, question and edit their writing more critically and that their superiors at work see a marked change once they start a short course from Wits Language School.

Read next: How English Language Skills Play An Essential Role In Building Trust With Your Customers

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