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  Questions and answers Saturday, 19th May 2012  
   
     
 
Displaying 1 to 5 of 6 records
May an employee insist for a grievance prodedure to be established?
Q: There is frequent confusion within the company I work for as staff complaints are channeled in many directions without adherence to one particular procedure. I would like to convince my employer to establish a set grievance procedure. Am I justified in my insistence?
A:  Having grievance procedures at work is extremely important. This procedure is simple. After being set up, it should be reduced to writing and attached to all the employees’ letters of appointment.

If no such procedure exists, then an employee could say that there is justification for resignation and then claim constructive dismissal. In the arbitration Santana Engineering CC, an arbitrator said that an employee was constructively dismissed and awarded compensation to that employee. In this particular case, a fitter and turner was threatened with dismissal if he did not resign. The fitter and turner claimed that he had no option other than to resign. The arbitrator said that he could have filed a grievance but, since no grievance procedure existed, this was not an option and therefore the dismissal was termed to be a constructive dismissal.
Contact: Michael Bagraim
Telephone: 021-422-2860
E-mail: bagm@iafrica.com
Am I able to claim ownership of an internet domain?
Q: I engaged the services of an internet service provider (ISP) to register an internet domain name for my company. On investigation, I discovered that a domain name, the same as my company name, was already registered by another party. My company has been in existence for over 20 years. Am I able to claim ownership of the name for use as an internet domain? What is the usual and correct procedure?
A:  Domain names are simply the addresses of the internet. E-mail is sent and web pages are found through the use of domain names.

A company wishing to acquire a domain name must file an application with the appropriate agency. Before doing so, a search is done to see if its desired domain name is already taken.

When a company finds that the domain name corresponding to its corporate name or product trademark is owned by someone else, the company can either choose a different name or fight to get the domain name back from its current owners.

This is no longer costly and time-consuming as the process for disputing website names has been simplified with the introduction of the alternative dispute resolution process by the .za Domain Name Authority (.za DNA). Domain name disputes are now handled by means of arbitration instead of by courts. Hasmukh Gajjar, chairperson of the .za DNA, explains that in the past the only way to sort out a dispute over a specific domain name was to take it to the courts, a process that could cost up to R250 000,00 and take a considerable amount of time. The new process allows anyone who feels that a particular domain name infringes on their rights, to bring the dispute before an arbitrator for a decision.
Contact: Smith Tabata
Telephone: 021-40-69100
E-mail: viviennef@strb.com
Loans and advances to staff: Do we have to register as a credit supplier?
Q: We lend our staff small amounts of money
for funerals and other emergencies. Furthermore,we sometimes give them advances on their salaries. Do these loans and advances mean that we have to register as a credit supplier according
to the National Credit Act even though we don’t sell our products on credit? In addition, I believe that, in some instances, companies have to comply with the Act even when they aren’t registered
credit suppliers. Is that correct and if so does it apply to our company?
A:  Staff loans/advances fall within the ambit of the Act, irrespective of the amount lent, only if interest is charged by the employer on the amount lent/advanced. These loans must comply with the provisions of the Act, whether the employer has to register as a credit provider or not. An employer has to register as a credit provider if the employer has more than 100 staff loans, or if the total amount lent
exceeds R500 000,00.
Contact: Ingrid Broodryk
Telephone: 021-481-6336
E-mail: broodryk@cliffe-dekker.com
What are the legal parameters in establishing whether an employer/employee relationship exists when taking on an independent contractor?
Q: I require additional clerical “staff” for six months of every year and would like to engage these people as independent contractors. What are the legal parameters in establishing whether an employer/employee relationship exists when taking on an independent contractor?
A:  The signed contract should clearly indicate that an independent contractor relationship and not an employer/employee relationship exists. The contractual terms and conditions of the contract and the intention of the parties at the time that it was signed (ie, objectively, was the intention to create the employer/employee relationship or the contract of service/independent contractor relationship?) are very important factors which are considered when determining the existence of an employment relationship between parties to a contract.

In order to ensure that the person remains an independent contractor and does not become an employee you must try to ensure that the:

  • manner in which the independent contractor works and the hours that he works are not subject to the control and direction of the employer;

  • the independent contractor is not provided with the main/primary tools of trade or work equipment by the employer;

  • independent contractor is not bound to work or render services to the employer exclusively; and

  • independent contractor is not disciplined by the employer.

However, these factors are not exhaustive nor are they individually decisive.
Contact: JD Verster
Telephone: 011-484-2495 / 5
E-mail: jd@labourlawoffices.co.za
Company and employee tax implications formedical aid contributions?
Q: What are the company and employee tax implications if my company were to pay all medical aid contributions for our pensioners?
A:  If the company were to pay medical aid contributions for pensioners, it would need to show its application in the production of income to be able to claim the deduction. It could be shown that medical aid for pensioners motivates current staff who are aware that the benefit will apply to them when they reach retirement.

The retired employees would receive the benefit (medical aid contributions) because of the work they once performed for the company. This would fall into “gross income” (paragraph [i] of the definition includes fringe benefits).

Broadly, the value placed on the fringe benefit is nil; so, effectively there is no tax effect in the employee’s hands. There are some exceptions, and it would be advisable to look at the specific facts in your case in more detail.
Contact: Grant Bayne
Telephone: 021-658-6600
E-mail: enquiries@nolands.co.za
 
     
     
     
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