AMENDED RULES ON THE HIRING OF EXPATS IN ANGOLA

On 24 April 2017, the Presidential Decree No. 79/17, of 24 April was published, amending the rules applicable to the hiring of non-resident foreign workers in Angola.

The most significant changes are:

  • The Regulation now allows the non-resident foreign employee and the employer to freely establish the duration of the agreement, which may be renewed twice, in accordance with the legislation in force. Previously, there was a limit of 36 months on the maximum duration.
  • The value and currency of remuneration may be freely agreed between the employer and employee. Previously, payment of remuneration had to be kwanzas.
  • The new regulation eliminates the prohibition of benefits and supplements paid directly or indirectly in cash or kind, in an amount exceeding 50% of the basic salary.
  • The payment of the employee’s remuneration in foreign currency must be made through a financial institution.

 

Contact our legislation team at info@crs.co.za if you require any additional information.

© 2017 CRS Technologies (Pty)Ltd. All Rights Reserved.

EMPLOYMENT EQUITY CODE OF GOOD PRACTICE – RECENT CHANGES

The Minister of Labour has issued a Code of Good Practice on the Preparation, Implementation and Monitoring of the Employment Equity Plan, outlined in Government Gazette 40817 of 28 April 2017.

A summary of the changes is highlighted below:

COMMUNICATION, AWARENESS AND CONSULTATION

When communicating on matters concerning employment equity, it is important to take special care that the content is communicated in clear and easily understood language to provide the entire workforce reasonable opportunity to grasp the content and subsequent rights.

Footnote: The previous Code of Good Practice did not include this paragraph, which reiterates the fact that employees must be clearly aware of the plan.

CONDUCTING AN ANALYSIS (contained in EEA12 of regulations)

Conducting of an analysis must be done in accordance with the EEA12 form of the Employment Equity Regulations of 2014, as amended. All areas of the EEA12 form template must remain, but the employer may add other areas, including columns and rows, to meet the objectives of the Act.

Footnote: The previous Code of Good Practice read: “Conducting of an analysis must be done in accordance with the EEA12 form of the Employment Equity Regulations of 2014, as amended.”  It did not include: “All areas of the EEA12 form template must remain, but the employer may add other areas, including columns and rows, to meet the objectives of the Act.”

DEVELOPING THE EE PLAN

  1. a) Analysis report (EEA12)
  2. b) National and provincial Economically Active Population (EAP)
  3. c) Determining the duration of the EE Plan.
  4. d) Determining the annual objectives of the EE Plan.
  5. e) Corrective measures formulated, including goals and targets.
  6. f) Time frames established.
  7. g) The EE Plan drawn up in terms of section 20 of the Act.
  8. h) Resources identified and allocated for the implementation of the EE Plan.
  9. i) The EE Plan communicated.

Footnote: Previous Code of Good Practice did not include (b) National and provincial Economically Active Population (EAP)

DISPUTE RESOLUTION 

  1. a) Internal procedures for resolving any dispute about the interpretation and implementation of the EE Plan should be agreed and specified in the EE Plan.
  2. b) The last point of call for the resolving of any disputes about the interpretation and implementation of the EE Plan should be the Chief Executive Officer (CEO) / Accounting Officer of the organisation.
  3. c) Existing dispute resolution procedures could be used or tailored to resolve disputes concerning the interpretation and implementation of the EE Plan.
  4. d) Where a dispute remains after the internal dispute resolution processes were followed, a party to the dispute may make an application to the Commission for Conciliation, Mediation and Arbitration (CCMA) or the Labour Court.
  5. e) Procedures must be time-bound, cost effective and simple for designated and non-designated employees to follow.

Footnote: Previous Code of Good Practice did not include (d) Where a dispute remains after the internal dispute resolution processes were followed, a party to the dispute may make an application to the Commission for Conciliation, Mediation and Arbitration (CCMA) or the Labour Court and (e) Procedures must be time-bound, cost effective and simple for designated and non-designated employees to follow.

 

Contact our legislation team at info@crs.co.za if you require any additional information.

© 2017 CRS Technologies (Pty) Ltd. All Rights Reserved.

KENYA 2017/18 BUDGET SPEECH

The Kenya Budget Speech was read 2 months earlier than it usually is as a result of preparing for the August General Election. Kenya Cabinet Secretary for the National Treasury, Mr Henry K. Rotich has delivered the Budget Speech.

Key Highlights of the Budget Speech:

  • The fiscal deficit is projected to decline to 6.0 % of GDP from an estimated 9.0 % in the FY 2016/17.
  • Global growth is projected at 3.4 % in 2017 compared with an estimate of 3.1 % in 2016.
  • The economy grew by 5.9 %, 6.2 % and 5.7 % in the first, second and third quarters of 2016 respectively, bringing the average growth for the first three quarters to 5.9 %. It is expected to grow by another 5.9 % in 2017.
  • Revenue collection including Appropriation-in-Aid (AIA) is projected at Ksh 1,704.5 billion equivalent to 19.6 % of GDP.
  • Proposed Amendments to the Income Tax Act:

Expansion of PAYE tax bands by 10% and increase in personal relief by the same rate.

With effect from 1 January 2018, the new annual PAYE bands will be as follows:

The personal relief will be increased from KES 15,360 p.a. to KES 16,896 p.a.

  • The tax amnesty declaration period in relation to foreign income has been extended to 30 June 2018 from 31 December 2017. KRA will issue guidelines for taking the amnesty.
  • The new Income Tax Act, expected later this year, will address other measures such as taxation of capital gains, compensating tax, taxation of pensions, taxation of the extractive industry and taxation of cross border transactions.

 

Contact our legislation team at info@crs.co.za if you require any additional information.

© 2017 CRS Technologies (Pty) Ltd. All Rights Reserved.

South African employers must take cognisance of the Compensation for Occupational Injuries and Diseases Act (COIDA), which replaced the Workman’s Compensation Act in 1993 – specifically because of incentives for registration and payment, but also because of penalties for non-compliance. This includes criminal proceedings for misrepresentation of the facts.

COIDA is the process implemented to provide for the payment of compensation for disablement caused by occupational injuries, diseases sustained or contracted by employees in the course of their employment, and for death resulting from injuries and diseases.

Any employer carrying on a business in the Republic must register with the Compensation Commissioner. As part of registering for COID an employer is required to submit the annual Return of Earnings (ROE), after which the employer will pay an annual assessment fee.

CRS Technologies, a specialist provider of HR and Human Capital Management (HCM) solutions, is positioned to help clients with the successful assessment and submission of their ROE.

It is critical that employers not only understand the law and their responsibilities, but also what the implications are of both compliance and non-compliance.

To this end, CRS Technologies has the resources, expertise and market experience to advise and assist clients.

This service offering includes advice on best practice process to comply with legislation, registration with COID, assessing employee’s remuneration earnings and identifying the risk associated with the type of profession, submitting ROE to the Department of Labour or the Rand Mutual Assurance (RMA), among others.

“We offer a full spectrum of services that will help our clients deal with the legislation appropriately in order to benefit. There is no doubt that non-compliance can have very severe consequences, and can cripple a business,” says Ian McAlister, General Manager, CRS Technologies.