Copy of U/S; 110024 Plan, Organize, Implement and Monitor Work within the Payroll environment.

Introduction to Payroll Administration

The main function of payroll is essentially to pay employees for work done. This however covers several activities ranging from calculating tax and paying it to SARS through to paying employees for expenses incurred or leave taken.

What your payroll involves and the specific functions you will be required to perform will depend upon the size of the company and any payroll policies and procedures which are in place. Often companies with a large workforce and a complicated remuneration system will have a payroll department and employ a number of staff to process the pay. 

Smaller organizations will not have the same requirements and may employ one person to do a range of functions, one of which is processing the pay.

The Human Resources (HR) and the Payroll Administration Departments are inter-related and operate in close contact. The HR Department formulates the personnel policies and manpower planning, whereas the Payroll Department will see to the implementation and maintenance of the payroll and related functions.

 

Payroll Function

The functions of a payroll administrator can be summarized as follows:

• To do the necessary input on the payroll system to ensure that an employee receives a pay slip at the end of each pay period.
• To ensure that the cash reflected as the net pay on the pay slip is transferred to the employee.
• To provide management with reports reflecting payroll information.
• To complete statutory returns on a monthly and annual basis.
• To ensure that all payments to third parties and statutory bodies are made.
• To reconcile the payroll by balancing pay slips to input documents.
• To fulfil bookkeeping responsibilities by entering payroll information in the cash book or general ledger.
• Where the matters do not fall within the discretion of the payroll administrator, it must be referred to the appropriate person (e.g., payroll manager, financial manager, HR manager).
• Ensure that all contractual entitlements and payment methods are checked for proper authorization and for consistency with the organization’s pay policies and statutory regulations.

Payroll Systems

The payroll process has evolved from manual wage books to sophisticated computer-based systems which perform many of the calculations necessary in the administration of payroll.

Manual systems are exactly as the name describes a manual system of calculating employee pay. Manual systems are very time consuming and require an enormous amount of cross checking and reconciliation. Due to the time-consuming nature of a manual payroll system, they are only suitable for employers with uncomplicated payroll requirements.

Computerized payrolls are becoming the preferred payroll system and unlike manual payrolls, the computer software associated with the payroll performs most of the calculations and usually cross check and reconciles the payroll. The automatic nature of computerized systems makes it very time efficient.

Confidentiality

Confidentiality is specifically addressed in the Basic Conditions of Employment Act which refers to “preservation of secrecy” stating that you may not disclose any information, which you have obtained in the course of your duties, concerning the financial affairs of any other person, except:

• If it is necessary for the proper administration of the Act,
• To any legal proceedings relating to a matter under the Act,
• To the Wage Board, the Board of Trade, and Industries, or an Industrial or Labour Court.
• As a payroll administrator, you will for example, be contacted by stores who want to check an employee’s credit references.
• If the store wants to know what the employee’s earnings are, ask what amount he/she gave them and confirm it. Do not give the amount yourself.

As a payroll administrator, you will for example, be contacted by stores who want to check an employee’s credit references. If the store wants to know what the employee’s earnings are, ask what amount he/she gave them and confirm it. Do not give the amount yourself.

A payroll administrator should always keep the principle of confidentiality in mind. You should regard all information as confidential. Even particulars like an employee’s marital status and age should be treated as confidential.

More guidelines:

• Do not print pay slips or other reports on a printer to which everyone has access. This is especially important if your payroll is installed on a network where you may print to different printers.
• Do not leave pay slips, reports or any other confidential information lying in your office when you leave the office. The office door should preferably, be locked when you leave.
• Do not give any unnecessary particulars concerning employees or the company to people over the phone.
• It is recommended that the payroll administrator is in an office of his/her own or that there is at least a lockable filing cabinet for filing confidential information.
• The layout of the office is extremely important. If your payroll is processed electronically, the screen must be positioned in such a way that people entering the office will not be able to see confidential information on the screen.
• Payrolls that are processed electronically must be restricted by passwords.

Laws of Payroll: South Africa

1. The company needs to be registered for deductions.

When you set up a company in South Africa, make sure that you are registered for:

• PAYE (the tax deducted from your employees)
• the skills development levy (SDL) you deduct to pay over to the sectoral education training authority.
• Unemployment insurance fund (UIF)

As a company you will also need to be registered for company tax as well as VAT.

2. There are certain requirements set by bargaining councils.

• Depending on the industry you are in, you may be governed by a bargaining council agreement that will dictate minimum wages to your employees. An example would be the retail bargaining council, or you may be in an industry that has no minimum wage.
• The bargaining council will also dictate hours of work, overtime rates and every aspect of the employment relationship. Failure to comply does result in a warning and sometimes a hefty fine.

3. You must have a contract of employment for every employee.

• According to the basic conditions of the employment act, each employee must have a written employment contract provided by the company. The contract must contain certain conditions of employment as stipulated in the act. This includes notice period, annual leave, pay rates etc. Inspectors from the department of labor regularly check on adherence to these requirements.

4. The differences in classifying workers as employees.

• In South Africa you are considered an employee and you are protected by the employment laws if you work more than 24 hours per month. If you work less than 24 hours per month or if you are a member of the National Defense Force, National Intelligence Agency, South African Secret Service or an unpaid volunteer working for an organization with a charitable purpose, you are not covered by the Basic Conditions of Employment Act. Beware that there are situations where the temporary worker can be covered and has the same rights as those of a permanent worker.

5. Leave pay is calculated at a different rate than normal pay.

• When calculating normal pay you multiply the hourly rate by the number of hours worked. When calculating holiday pay, the hourly rate is calculated as an average rate taken over the last three months, and this must also include overtime and any commission received by the employee.

6. You must submit all employee information monthly before the deadline.

• On the seventh day of each month, you must submit your tax, unemployment and skills development return (EMP 201) to the receiver of revenue and pay the amounts due. If there are any late submissions, you will be liable for a fine of 10 per cent of the total amount outstanding. No exceptions are allowed on this deadline.

• There are also submissions in August for the six-month reconciliation, as well as the annual reconciliation in April/May. Workmen’s compensation returns are due in March. There is also a monthly return to be done to the Department of Labour. These all refer to earnings and deductions done on your payroll.

7. All records must be saved and made accessible by employers.

• All employee records need to be kept for a period of five years. This is the responsibility of the employer. The documents that need to be kept include time sheets, pay slips and contracts of employment.
• Electronic copies are acceptable. It is recommended that any documents to do with the receiver of revenue be kept indefinitely.

8. Employment equity is a serious matter.

• This is a very real issue, and the reporting and implementation is taken very seriously. Large companies need to submit a report every six months to the Department of Labour detailing their progress on their employment equity planning and status. Smaller companies need to submit these reports annually.

9. The banking system available

• The South African banking systems are sophisticated and on par with international electronic transfer standards. All monies can be transferred to individual employees or across to third party creditors such as pension or medical insurance companies.
• These transfers are done via the main banks or via third party suppliers. The timing of transfers is such that if you complete it by 3pm, the money will be available to employees by 12pm midnight.

10. There are seven laws that govern the employment and remuneration relationship

• South African workers are well educated on what they are entitled to and expect the payroll department and the company to deliver what is due. Therefore, it is imperative to run an error-free payroll. The following seven acts regulate the employment relationship in South Africa:

1. Basic Conditions of EA
2. Labour Relations Act
3. Unemployment Insurance Act
4. Health and Safety Act
5. Workman’s Compensation Act
6. Income Tax Act
7. Skills Development Act

 Learning Unit 1

	US:110024, NQF Level 34 Worth 10 Credits PLAN, ORGANISE, IMPLEMENT AND MONITOR WORK WITHIN THE PAYROLL ENVIRONMENT
Unit Standard Purpose	This unit standard is for learners in the payroll profession, or those seeking to enter the payroll profession, who wish to enhance their payroll competencies. Learners who are competent in this unit standard will be able to plan and, where necessary, agree on work methods and/or activities to achieve work objectives, to coordinate his/her own work with that of colleagues in achieving planned work outcomes and to monitor and control planned work, taking corrective action where necessary. The qualifying learner is capable of: ·        Planning work for payroll cycle. ·        Monitoring and controlling the achievement of targets planned within the payroll cycle. ·        Developing procedures to meet specified needs. ·        Implementing and maintaining procedures. ·        Managing appointments.
Learning Assumed to be in Place.	It is assumed that the learner has the following knowledge and skills: ·        Communication at NQF Level 3. ·        Mathematical Literacy at NQF Level 3. ·        The Unit Standard “Demonstrate an understanding of statutory legislation and requirements relating to payroll administration” at NQF Level 4.
Session 1 SO 1	Plan work for payroll cycle.
Learning Outcomes (Assessment Criteria)	·        Tasks are identified and prioritized to meet organizational statutory and requirements. ·        Resources are allocated to complete identified tasks in order of priority. ·        Changes in priorities are recognized and resource allocations adapted accordingly. ·        Relevant assistance is identified, negotiated and coordinated to meet specific demands and deadlines. ·        Tasks are accurately defined, and appropriate information provided. ·        Work methods and activities are clearly defined and agreed with appropriate persons. ·        Work methods and activities conform to statutory requirements and organizational procedures.

2. Understanding the Payroll Cycle

The most common payroll frequencies are daily, weekly, fortnightly or monthly.  Payroll frequencies are determined by the Basic Conditions of Employment / Applicable Bargaining Council Main Agreements or Company Policies.

Important things to understand before a Payroll (Cycle or Process) can be established:

• BCEA / Bargaining Council Legislation Obligations
• Statutory Requirements / Obligations
• Environment
• Financial Reporting Dates and Requirements
• How Data Is Transmitted
• Legislation Changes
• Off-Cycle Adjustments
• Pay Days
• Leave Entitlements
• Query Process
• Responsible Departments
• Review and Approval Process
• Variables

Full Cycle Payroll processing consists of the steps needed to pay employees each period. The life cycle of payroll processing is usually between 1 – 12 days.

Payroll processing involves processing employee remuneration [Basic Salary, Wages, Overtime, Gratuities, Allowances etc.], processing deductions and contributions [Statutory PAYE, UIF, Union fees and any Bargaining Council elements and non-statutory deductions as governed by Company Policies, Pension / Provident Fund Contributions, Medical Aid, Fines, Tools etc]

The payroll cycle is a process that you complete each time that you pay employees. The payroll cycle consists of these basic steps:

• Process Company and Legislation Changes.
• Process Employee Changes.
• Process Employee Income / Deduction / Contributions.
• Process Variables.
• Send For Integrity Check.
• Send For Accuracy Check.
• Process Corrections.
• Send For Final Check.
• Send For Approval.
• Send For Payment.
• Process Journal Entries.
• Print Payroll Cycle Reports.

Before each payroll cycle, you enter and update information that the system uses during the payroll cycle. This information includes pay frequency and employee information, such as the Employee’s Tax Number, ID Number, Pay Rate, Variable Income, Variable Deductions etc.

This diagram shows the standard flow of events (the payroll cycle) that you use to process payroll for employees. The top line shows the flow of the tasks that you perform before and after a payroll cycle. The circle represents an example payroll cycle:

It is imperative that you review Company Information and possible Legislative Changes before starting with your Payroll as some Payroll Systems require authorization to apply legislative updates or require recalculations to be done before proceeding with the next Payroll Period.

Identifying and Planning for a Payroll Cycle

The importance of Planning can be defined by the 5 P’s – Prior Planning Prevents Poor Performance

Take the following into consideration when planning:

• Closing Reports Due Date
• Quantity Of Variable Input
• Statutory Deadlines
• Time Required to Approve Payroll Data
• Time Required to Capture Payroll Data
• Time Required to Review and Correct Payroll Data
• When Is Funding and Bank Files Due? Is This Sufficient Time for Funds to Reflect?
• When Is the Pay Date? Does This Fall Over a Weekend or Public Holiday?

The Payroll Cycle within each organisation may vary depending on the company structure, available resources, review, approval processes and pay methods.

Example:

Action	Responsible Person
Process Company and Legislation Changes.	Payroll Administrator or Payroll Manager
Process Employee Changes.	HR Administrator or Payroll Administrator
Process Employee Income / Deduction / Contributions.	Payroll Administrator
Process Variables.	Payroll Administrator
Send For Integrity Check.	Payroll Manager
Send For Accuracy Check.	Payroll Manager
Process Corrections.	Payroll Administrator
Send For Final Check.	Payroll Manager
Send For Approval.	Payroll Manager
Send For Payment.	Finance Manager
Process Journal Entries.	Payroll Administrator
Print Payroll Cycle Reports.	Payroll Manager
Close.	Payroll Manager

When planning a Payroll Cycle, ensure a realistic timeframe is added to each action, considering some time for unexpected delays and additional input or correctios.

A good example of a Payroll Cycle is:

Action	Timeline	Responsible Person
Process Company and Legislation Changes.	1 Day **	Payroll Administrator or Payroll Manager
Process Employee Changes.	1 Day	HR Administrator or Payroll Administrator
Process Employee Income / Deduction / Contributions.	3 Days *	Payroll Administrator
Process Variables.	1 Day *	Payroll Administrator
Send For Integrity Check.	1 Day	Payroll Manager
Send For Accuracy Check.	1 Day *	Payroll Manager
Process Corrections.	1 Day *	Payroll Administrator
Send For Final Check.	1 Day	Payroll Manager
Send For Approval.	1 Day	Payroll Manager
Send For Payment.	1 Day	Finance Manager
Process Journal Entries.	1 Day *	Payroll Administrator
Print Payroll Cycle Reports.	1 Day *	Payroll Manager
Close.	1 Day *	Payroll Manager
	15 Days Total

* Can be actioned simultaneously

South African Statutory Submission Dates

Description	Date
EMP 201 – Submission	No later than the 7th of Each Month
Payment of EMP 201	No later than the 7th of Each Month
Interim EMP 501 – Submission (March – August)	No later than 31 October
Annual EMP 501 – Submission (March – February)	No later than 31 May
UIF Submission	No later than the 7th of Each Month

Payment and Submission Dates as per the Statutory Requirements (2022)

Learning Unit 2

Session 2 SO 2

Monitor and control the achievement of targets planned within the payroll cycle.

Learning Outcomes (Assessment Criteria)

·        Valid and accurate control mechanisms are maintained in accordance with organizational statutory and procedures. ·        Work outcomes are reviewed against agreed targets. ·        Reasons for deviations from planned targets are identified and reported to appropriate persons. ·        Corrective actions are implemented within limits of own authority, and the relevant people are informed.

 

3. Control Mechanisms within the Payroll Department 

Once a Payroll Cycle and Process is established, it is vital to ensure the integrity and quality is maintained by means of control mechanisms.

This includes mechanisms to prevent errors and fraud, the process of the cycle needs to be monitored and adjusted as the input and output requirements change as well as when an internal process has changed.

Below is a simple Payroll Cycle / Process

 

It is vital to identify where potential barriers and risks that can result in loss or fraud and potentially impact deadlines.

 

Quality Assurance

Quality Assurance (QA) is the proactive approach of quality which focuses on preventing the risks and barriers at the process level.

 

General Payroll Controls

Consider using a selection of the following controls for nearly all payroll processes, irrespective of how timekeeping information is accumulated or how employees are paid:

Audit: Have either internal auditors or external auditors conduct a periodic audit of the payroll function to verify whether payroll payments are being calculated correctly, employees being paid are still working for the company, time records are being accumulated properly, and so forth.

Change authorizations: Only allow a change to an employee’s marital status, withholding allowances, or deductions if the employee has submitted a written and signed request for the company to do so. Otherwise, there is no proof that the employee wanted a change to be made. The same control applies for any pay rate changes requested by a manager.

Change tracking log: If you are processing payroll in-house with a computerized payroll module, activate the change tracking log and make sure that access to it is only available through a password-protected interface. This log will track all changes made to the payroll system, which is very useful for tracking down erroneous or fraudulent entries.

Error-checking reports: Some types of payroll errors can be spotted by running reports that only show items that fall outside of the normal distribution of payroll results. These may not all indicate certain errors, but the probability of underlying errors is higher for the reported items. The payroll manager or a third party not involved in payroll activities should run and review these reports.

Expense trend lines: Look for fluctuations in payroll-related expenses in the financial statements, and then investigate the reasons for the fluctuations.

Issue payment report to supervisors: Send a list of payments to employees to each department supervisor, with a request to review it for correct payment amounts and unfamiliar names. They may identify payments being made to employees who no longer work for the company.

Restrict access to records: Always lock up employee files and payroll records when they are not in use, to prevent unauthorized access. Use password protection if these records are stored online. This precaution is not just to keep someone from accessing the records of another employee, but also to prevent unauthorized changes to records (such as a pay rate).

Separation of duties: Have one person prepare the payroll, another authorizes it, and another create payments, thereby reducing the risk of fraud unless multiple people collude in doing so. In smaller companies where there are not enough personnel for a proper separation of duties, at least insist on having someone review and authorize the payroll before payments are sent to employees.

Payroll Calculation Controls: The following list of possible controls address such issues as missing timesheets, incorrect time worked, and incorrect pay calculations. They are:

• Automated timekeeping systems: Depending on the circumstances, consider installing a computerized time clock. These clocks have a number of built-in controls, such as only allowing employees to clock in or out for their designated shifts, not allowing overtime without a supervisory override, and (for biometric clocks) eliminating the risk of buddy punching. Also, you should send any exception reports generated by these clocks to supervisors for review.

• Calculation verification: If you are manually calculating payroll, then have a second person verify all calculations, including hours worked, pay rates used, tax deductions, and withholdings. A second person is more likely to conduct a careful examination than the person who originated the calculations.

• Hours worked verification: Always have a supervisor approve hours worked by employees, to prevent employees from charging more time than they actually worked.

• Match payrolls register to supporting documents: The payroll register shows gross wages, deductions, and net pay, and so is a good summary document from which to trace back to the supporting documents for verification purposes.

• Match timecards to employee list: There is a considerable risk that an employee will not turn in a timesheet in a timely manner, and so will not be paid. To avoid this problem, print a list of active employees at the beginning of payroll processing, and check off the names on the list when you receive their timesheets.

• Overtime worked verification: Even if you do not require supervisors to approve the hours worked by employees, at least have supervisors approve overtime hours worked. There is a pay premium associated with these hours, so the cost to the company is higher, as is the temptation for employees to claim them.

Learning Unit 3 

Session 3 SO 3	Develop procedures to meet specified needs.
Learning Outcomes (Assessment Criteria)	·        Procedures meet identified needs and conform to statutory and organizational requirements. ·        Designs and specifications for procedures are developed in conjunction with users. ·        Benefits and costs are formulated and agreed with decision makers. ·        Specialist advice is obtained and acted upon where appropriate

Develop procedures to meet specified needs.

Step 1: Consultation

When developing your policies and procedures, you must consult with all relevant stakeholders, including health and safety representatives, contractors (particularly those who work with you regularly), and of course your employees.

Consultation should ensure that every person in your workplace understands the importance of company policies and procedures and why they need to be implemented effectively. It will also ensure that the policies and procedures are realistic and actionable daily. Tip: Consultation helps to achieve more effective policies and procedures and is a greater motivation for employees to follow them.

Step 2: Tailor the policy to your business

The policies and procedures you adopt need to be tailored to the needs of your business, not just lifted straight from a generic manual. If you use policies and procedures from another source, it is essential that you adapt them to your company and your workplace operations.

Step 3: Define obligations clearly – be specific

All policies should be short and succinct. All procedural steps should be set out in clear and plain English.

This will create an ‘auditable standard’, meaning that you create a standard that can be used to measure whether your workplace health and safety obligations are being met or not. The obligations outlined in an auditable standard should be defined in enough detail that persons in your workplace understand exactly what is expected of them. Specifically state what actions should be taken. For example, don’t say “dispose of chemicals safely “, but state how this should be done at the site, e.g., “chemicals must be disposed of in the designated approved dangerous goods waste drum “

Step 4: Make the policy realistic

Make sure your business has the time, resources and personnel to implement the policy.

There is no point in adopting a policy which aspires to the best practice possible if your business cannot realistically adopt the procedures set out. This is the development stage of the policy and procedure done. Once you have completed these steps, you will have the policies and procedures your company needs to maintain a healthy and safe workplace. But the next stage is just as important as the development stage, the implementation stage…

Don’t get too excited that you have developed the policies and procedures because without implementing them correctly, they won’t be of any use to you.

Step 5: Publicize the policies and procedures

Put your policies and procedures in writing and make them available to your entire workforce. If possible, keep all your policies and procedures in a single manual, and make copies readily available to all employees. Tip: Safety documents should also be published on the company’s intranet if you have one.

Step 6: Train all employees in policies and procedures

You have an obligation to provide adequate information, instruction, supervision and training to your employees.

Ensure that new employees and contractors are trained and familiar with company policies and procedures, and that existing staff receive appropriate training, e.g., annual refresher courses. Policies and procedures should also be reiterated and discussed with staff regularly at team meetings to ensure that employees remain aware of the importance & advantages of the policies and procedures.

Tip: It is a good idea to have all employees and contractors sign off after they have read, understood and agree to comply with your workplace policies. You should also keep records of training and induction. Make sure that you record attendees and details of training content in case an employee fails to sign a training record.

Step 7: Be consistent in your policy implementation

Supervision of your workplace to ensure that the policies and procedures are being properly implemented by all employees is essential.

Follow-up to ensure that any failure to follow the policy or procedure is addressed. Specify that full compliance with the stated requirements is needed to ensure a safe workplace.

After this, any deliberate breaches of policies or procedures must be treated seriously and dealt with immediately and consistently. All supervisors and managers must ‘lead by example’ in implementing policies and procedures. It is crucial that all OHS expectations are demonstrated through modelling and leadership at all levels of management.

If managers condone practices which do not fall within the policy, it could be argued that disciplinary action against an employee who fails to follow the policy is unfair. The consequence of any deliberate breach should be appropriate to the severity of the breach, whether it be:

• counselling.
• disciplinary action (e.g. a warning); or
• in serious circumstances, dismissal.

Step 8: Review all policies and procedures regularly

Policies and procedures must be reviewed periodically.

When any changes occur, ensure your policies and procedures remain relevant and effective. For example, a change may occur when a business purchases a new piece of machinery, starts using a new chemical or adopts a new production method. Any such changes mean that relevant procedures should be reviewed.

Tip: The review cycle will depend on the circumstances and document type, but it is a good idea to review policies at least every 2 years, e.g. an OHS training policy may only need to be reviewed every 3 years, but a chemical handling procedure should be reviewed more often due to the level of hazard involved.

Implement a document management system that:

• triggers reviews.
• notes the dates of change; and
• involves interactive revision.

All employees and contractors need to be made aware of the changes to policy and procedure when they occur.

Step 9: Enforce the workplace policies and procedures

Once your policies and procedures have been implemented, they need to be enforced. Make sure that you approach this consistently as this is an important factor in being able to discipline a worker for a breach of policy.

Develop policies to meet specified needs

HR professionals are often confronted with employee relations issues in the workplace and faced with deciding the best approach in handling these issues. Company policies are created to establish expectations and to provide guidance on how to consistently handle workplace situations. Although most company policies are not all-encompassing, they provide direction regarding what is appropriate as well as inappropriate or unacceptable behaviour. Company policies help maintain order within the organization and ensure that people are treated fairly and equally. Policies also help employees understand what is expected of them. The five steps needed to develop and implement a new employer policy are outlined below.

Step 1: Identify the Need for a Policy

Employers do not need to create policies for every unforeseen event as this will limit management’s ability to address individual employee needs or unique situations. Policies should provide good guidelines and expectations to ensure fair and consistent practices and legal compliance. Employers may want to develop a policy:

• If employees’ behavior indicates confusion about the appropriate conduct or how to handle certain situations (e.g., attendance policy, cellphone use policy, travel expense policy, code of conduct).
• If legal protection of the organization is necessary (e.g., investigations policy).
• If there is a need for government laws and regulations compliance
• If there is a need to create consistent standards and rules (e.g., progressive discipline).
• If there is a need to create consistency and fair treatment of employees (e.g., paid time off, benefits eligibility).

Step 2: Determine Policy Content

Policies are written guidelines that explain generally what the employer’s requirements are and how employees will be treated. As organizations create new policies, they should be careful to avoid language that conveys rigid rules that must be followed exactly as written in all circumstances. Flexibility should be built into the wording and promises that could be interpreted as a contract should be eliminated. For example, organizations should not:

• State that the organization will “only” or “always” do something, or “will” or “must” act in a particular way.
• Describe employees as “permanent.”
• State that employees will be terminated only “for cause.”
• Make promises of job security.
• Use all-inclusive lists, such as in disciplinary procedures or work rules.

Employers should use terms such as “generally,” “typically,” “usually” and “may” so that managers have flexibility in interpreting and applying the policies based on the circumstances involved and on the severity of any company policy violation(s). All policies need to be written in clear language. The policy language itself often varies from employer to employer depending on size, industry and sometimes even location. However, most policies have similar components. The typical components are outlined below:

Purpose statement. The purpose statement outlines why the organization is issuing the policy and what the desired effect or outcome will be. For example, “Employees contribute to the corporate culture and reputation of [Company Name] in the way they present themselves. A professional appearance is essential to a favorable impression with customers, regulators and company shareholders (owners). Good grooming and appropriate dress reflect employee pride and inspire confidence on the part of such persons. “Specifications section. This section includes details about specific regulations, requirements, or organizational behavior standards that the policy is creating. For example, “Employees are expected to dress in business attire Monday through Thursday. On Friday’s employees are permitted to wear casual attire unless there is an event at the workplace, or the employee has any meetings with external clients or vendors that day.”

Implementation section. This section indicates which parties are responsible for carrying out policy statements and how those parties will ensure adherence to the policy. For example, “Managers will exercise discretion in determining appropriateness in appearance.” Effective date. This date indicates when the policy is considered in force. For example, “All employees will be subject to this new policy/revision as of [date].” Glossary. A listing of definitions for terms found in the policy (for example, “casual shirts: All shirts with collars, including collared blouses, golf and polo shirts.”).

Although employers are free to create policies according to business needs, the policies must be written in compliance with pertinent employment laws. This can be more complicated for multistate employers because it is critical to ensure that policies do not conflict with more than one set of state employment laws. Therefore, all policies should be reviewed by experienced legal counsel prior to communicating the policy to employees.

Step 3: Obtain Stakeholder Support

All too often those who are expected to carry out the policies and ensure adherence to the policies are not consulted prior to the implementation of the policy. Once the policy has been drafted, it will be important to communicate (e.g., meetings, e-mails, teleconferences) with managers and supervisors who will be expected to apply the policy. This communication should include why the new policy (or revision) is needed, address the impact the policy will have on the stakeholder’s area(s) and address any potential thoughts or concerns the stakeholders may have. Considerations from these meetings will lead to any necessary revisions before legal counsel conducts its final policy review.

Step 4: Communicate with Employees

Organizations should give employees background information (when possible) as to why the policy is being implemented. Employees should be given enough details to make the organization’s position clear while keeping the communications process short and simple. Employers can determine the best approach to introduce the policy to employees based on the nature, sensitivity, and ease in which the policy will be understood. The best means of distributing the policy (e.g., e-mail, memo, or individual/small group/all-employee company meetings) must also be determined. If using e-mail or company memo, these communications should be distinguishable from other routine communications that employees may easily overlook. For example, organizations can specify the topic in the subject heading, change the importance of an e-mail, change the background and font of a memo or e-mail, change the delivery method of memos, or add read receipts for e-mails.

Employers should incorporate a communication method that will give employees an opportunity to ask questions about the policy. The policy should consist of an acknowledgment statement indicating the employee’s receipt and understanding of the new policy along with the effective date of the policy. The policy should contain space for the employee’s signature and date. It should also be added to the organization’s employee handbook or intranet and included in new-hire orientation programs as appropriate. Employers should notify employees where they can access the policy later (i.e., links to intranet site, attachment of policy to print and add to their employee handbook).

Step 5: Update and Revise the Policy

Clear, well-written policies that are regularly reviewed can be effective employee relations tools and communications devices. They illustrate the organization’s commitment to a positive work environment. Although written policies in general are not legally required, they can be used to demonstrate non-discriminatory employment practices and serve as the basis for an effective defence in employee lawsuits.

Policies should be reviewed on a regular basis to ensure they continue to comply with federal and state laws and the needs of the organization. New laws, regulations and court cases can affect both policy language and how employers implement the policies. Most experts suggest a thorough review of policies at least once a year. Employers should also use resources that will keep them updated in the interim, like subscribing to a service or publication or becoming part of an organization that specializes in HR or employment.

Learning Unit 4

Session 4 SO 4

Implement and maintain procedures.

Learning Outcomes (Assessment Criteria)

·        Accurate, clear and comprehensive guidance is supplied to users. ·        Users are provided with support to enable them to implement agreed procedures. ·        Installed procedures conform to relevant statutory and organisational requirements. ·        The effectiveness of procedures, in meeting their purpose, is evaluated. ·        Opportunities for improvement are identified and appropriate action taken.

Implement and maintain procedures

Companies and the environments within which they operate are ever-changing. One of the results of such is that employers often find themselves in situations where alterations to employment conditions are required to keep up with the demands of the business.

The question many employers face because of such is what they can change from an employment perspective, what labor legislation prescribes, what best practice is and ultimately how much say they have over-regulating and amending employment conditions. This short article attempts to address these questions and assesses first a legal consideration as to what aspects of the employment relationship can be changed, the legal considerations to implement and change and lastly recommendations as to best practice when implementing new policies and procedures in the workplace.

What employment conditions can be changed by law?

In the case of ICHAWU & Others v CCMA & Others (case C308/13, 29 July 2015), the Labour Court addressed the legal considerations to be made when dealing with a change in employment conditions. In the case the court addressed whether a change to a company’s shift roster and the employer’s subsequent instruction to adhere to such constituted an unfair labor practice. It raised the question of how much discretion employers have when “runing” and “regulating” their business and to what point this infringes on employees’ rights to not have their terms and conditions of employment unilaterally altered.

To understand the legal standpoint, employers are advised to draw a clear line between terms and conditions of employment (as it was found to be in the case above) and workplace practices.

• Terms and conditions of employment

Terms and conditions of employment, derived mostly from individual employment contracts are regarded as the “core terms” on which the employee accepted the job. These include salaries, working hours’ notice periods, leave days, etc. Terms and conditions are interpreted to be contractually agreed upon upfront and according to common law cannot be unilaterally changed without both parties’ consent.

• Workplace practices

Workplace practices, on the other hand, are communicated and enforced collectively through (to the most part) company policies, codes and procedures. The purpose of a workplace policy is to enhance operational efficiencies, ensure a safe and non-discriminatory workplace. Leave policies, disciplinary codes, grievance procedures, and discrimination policies are some examples of such, wherein they serve as regulations of company rules, guidelines of acceptable norms of behaviour and specifications on the company’s conflict and disciplinary resolution process. In contrast to terms and conditions of employment, employers have more freedom and leeway when regulating and altering workplace practices and can essentially do so as long as the below guidelines are adhered to.

• What does the law say when implementing policies and procedures?

Whilst employers have the right to implement policies and make unilateral decisions when it comes to company rules and regulations, this right is not without limitations. The Labour Relations Act, 66 of 1995 (LRA) must be consulted with before implementing policies and any company rule for that matter, so as to ensure the minim prescribed requirements are met. Without this, a policy will not be enforceable. The following must be addressed:

• A rule must first and foremost be lawful, valid and reasonable: This implies that companies cannot set arbitrary or unlawful rules and should be able to substantiate any rule with an operational requirement of the business. Substantiating a rule would entail linking it to either efficiency in operations or the health and safety or good harmony of the workplace. Furthermore, ensuring such rules is not found to be in contradiction to any contractual term of the contract or overriding labor statute.
• Secondly, employees must be made aware of the rules: Creating awareness of a rule necessitates an employer to clearly establish a position on a standard and then effectively and unambiguously communicating the standard required to all employees. To the most part, this communication would take the form of introducing a company policies and procedure. Or alternatively sending out a memorandum referring to or reiterating an existing standard. This is to be discussed further.
• And lastly, the rule or standard must be consistently applied by the employer to all employees.

Companies are bound by precedent when it comes to applying discipline and should be mindful of the implications that the current decision may have on future transgressions. This is a point on which many employers fall foul and could result in unfair labour practices or even unfair dismissals.

• What is best practice when implementing policies and procedures?

With reference to the specifications prescribed in the Code of Good Practice (LRA), the following practical guideline is recommended for employers when drafting and implementing company policies and procedures.

• Ensure the condition is a workplace practice

First and foremost, employers need to ensure that the area they seek to regulate is identified as a workplace practice and not a term and condition of employment. Are we looking to regulate an area of the work and enforce a company rule, or are we attempting to change a core condition on which the employee accepted the job?

This first point can become highly technical so approach your LabourNet consultant should you need any further clarification and make sure you don’t fall foul of unfair labour practice.

• Clarify the purpose of the policy.

As per the LRA, rules and regulations need to be substantiated by a business requirement. Failing to do so is not only in contravention to the LRA, but in a business context, there is nothing worse than an unnecessarily, overly regulated workplace with policies that serve no purpose. The purpose of policies is to enhance efficiencies and reduce risk. Not to create a culture of compliance for the sake of compliance.

Ask yourself whether the rule is reasonable and valid. Further that it serves a business interest of either increasing efficiency or is required to maintain good order and ensure the safety of the workplace.

• Cleary define a position

Clearly defining the company’s position on a standard is a vital requirement of enforcing any policy or rule. The LRA requires employers to create awareness and ensure a clear understanding of the company standard. Ensure there is no ambiguity in what the company’s stance is on a matter. If you are to implement a leave policy, when do employees need to bring a medical certificate, who should they phone in to, is WhatsApp’s accepted? These are the questions that any comprehensive leave policy should address and will seriously affect the company’s ability to enforce a standard consistently.

Keeping a policy clear, specific and measurable is key.

• Create Awareness

Communication, when implementing a new policy or creating awareness of changes made to an existing one, is not only required by the LRA but from a success of implementation perspective further entails elements of change management.

Legally, an employer needs to be able to prove an employee was made aware or could reasonably have been made aware of any company policy and procedure when looking to enforce such. Employers should take note that this is often raised as a defence in disciplinary hearings. Special care should, therefore, be taken when implementing and recording the implementation of all company policies and procedures.

Further to the legal requirement, employers should from a best practice perspective be cognizance of employees resistant to change. During policy implementations, due to the uncertainty, there is often times resistance from employees. The success of a policy implementation is heavily dependent on change management and the ability of an employer to communicate the rationale behind a policy or standard as well as make clear the benefits of the policy to employees. It is after all in everybody’s best interest that the company operates efficiently and that a harmonized safe working environment is maintained.

• Consistency

The final point of consideration is consistency both in the application of policies and standards, as well as the application of sanctions to contraventions of such. As explained previously this is where a lot of employers fall short.

Employers should be very mindful of maintaining their “position” detailed in company policies and procedures and further look to adhere to the recommended sanction set out by internal disciplinary codes. There are always certain exceptions, as the entirety of a given situation (aggravating and mitigating circumstances) needs to be taken into account. But employers should be very mindful that any deviations from the code or policy would need to be substantiated and must stand up to scrutiny should they need to be defended at the CCMA.

Learning Unit 5

Session 5 SO 5

Manage appointments.

Learning Outcomes (Assessment Criteria)

·        Appointments are managed to meet work objectives and the availability of the appropriate persons. ·        Appointments are negotiated with the appropriate persons and agreed within given time constraints. ·        Appointments are confirmed with the appropriate persons. ·        Essential information is recorded appropriately and is up-to-date, legible and accurate. ·        Reasons for non-attendance at appointments are promptly clarified and reported to the appropriate persons. ·        Security and confidentiality procedures conform to organisational requirements.

 Manage Appointments

Tips for Improving Your Appointment Setting Skills

No matter what business you’re in, the odds are that you spend at least some time in appointments. Your appointments may be big group meetings, one-on-ones, or even job interviews. You may even be skipping the face-to-face aspect of meeting and be taking conference calls or using Skype. No matter what type of meeting you’ve scheduled, though, these tips can help you improve your appointment setting skills.

• Set agendas ahead of time. Knowing what you plan to accomplish in a meeting can help you decide how long to plan to stay at that appointment — assuming you can keep to your agenda. It can be hard to get other people to stay on track, but no one really wants to spend all day in a single appointment. Furthermore, completing an agreed upon agenda is really the only way to be sure when your meeting is over.
• Offer time and date options for appointments. Rather than going through a lengthy back and forth, either on the phone or via email, pick two or three appointment times that work for you and present them to the other half of your appointment. If you’re dealing with a larger group, it’s almost guaranteed that at least one option won’t work for someone, and having multiple options is a much faster way to reach consensus.
• Avoid fancy software applications. While there is some very snazzy appointment setting software out there, try to avoid using anything out of the ordinary. The exception to this rule is parties or very large meetings. In general, using these applications take more time than they’re worth — there’s a learning curve for new users, and having to visit a site to respond can take double the time of replying to an email. However, when you’re trying to coordinate large groups of people, using an application can provide a central location rather than sending out huge batches of emails.
• Make sure you really need a meeting. Plenty of appointments are set for simple things like handing over a document for approval. Unless that document is short enough to be completely examined during the meeting, it might be more worthwhile to drop off the document and come back later to answer questions and handle the approval process. Before actually setting your appointment, think about whether the matter could be handled in a faster way.
• Minimize travel time. One of the reasons that appointments eat up so much time in our calendars is the necessity of travel. We have to travel to clients’ offices, coffee shops or wherever the heck we’re meeting. We can minimize that commitment by suggesting that we meet at our own locations, meet halfway, or skip meeting in person altogether. Options like telephone calls or video conferencing can often handle all the requirements of that appointment you were going to drive across town for.
• Schedule time for both preparation and debriefing. When you set your appointment, think about what you might need to do to prepare for it — review a report, prepare a presentation or iron your shirt — and schedule time for each of those activities before your actual appointment. It’s also worthwhile to schedule a fifteen-minute prep session just before your appointment for any last minute details. Same goes for afterwards: you may have certain follow-up tasks to handle after your meeting. Scheduling at least a few minutes after an appointment guarantees that you’ll have time to make sure your notes are complete and any sort of further action at least makes it on to your calendar (if you can’t do it then).
• Separate personal and business appointments. Many of us try to load all of our out-of-the-office appointments into one day. Ignoring the problem of what happens if just one runs late, you’ve got the issue of trying to switch gears between the presentation you just gave to a client and the shot the doctor’s waiting to give you. That sort of mental switch up can only make it harder to handle your later appointments. Try to schedule your personal and business appointments on different days.
• Keep your appointment schedulers up to date. If you aren’t the only person scheduling your appointments, it’s vital to keep the others in the loop. Otherwise, your significant other might be expecting you at a family dinner at the same time you’re finishing up a major project. I like shared calendars, such as Google Calendar for that very reason, but there are ways to share just about every type of calendar, if you’re reliant on your own system. Appointment schedulers can include your manager, your significant other, an administrative assistant (yours or the departments) and a whole host of other people.
• Limit invitees. You may not need the whole company present for a progress report. Instead, decide who actually needs to be in on your appointment — you can always send out a mass email later on if people feel left out. I’ve been in situations before where higher ups felt left out if you didn’t bring them in on every single appointment you were setting up. The best bet seems to be presenting the meeting as something that wouldn’t be a valuable use of their time.
• Confirm everything! Confirm when and where the meeting is, what the agenda covers, even how to get there. All you really need is a brief email a day or two before the appointment that outlines the appointment and ask for a simple yes in response if everything is correct.

How to Effectively Schedule & Manage Appointments

If you are a small business owner, you’ve probably experienced more than one obstacle in managing and scheduling appointments. This is a common problem in the world of business, especially for businesses that are just starting out or rapidly expanding.

Double-booking your clientele is not only a hassle; it can lead to appearing unprofessional in a client’s eyes. You may even lose clients to this kind of clerical error.

In short, a poorly managed schedule is a nightmare for business owners and managers.

How to Take Control of Your Appointments

Consider taking the pressure off yourself and your staff by hiring a dedicated appointment manager. This may be another employee you have to pay, but the value of a well-maintained schedule will pay for the extra salary repeatedly.

To handle appointments on a personal level, keep everything in one place. If you need to keep appointments just for yourself, maintain a spreadsheet program open on your computer with your appointments neatly arranged. If you’re on the go, keep them on a tablet PC or smartphone that you can carry with you at all times. An online calendar service can also be quite useful for on-the-go schedule tracking.

The Best Way to Manage Your Schedule & Appointments

Online scheduling is the most effective and efficient way to keep your appointments and schedule organized. This software automatically protects against overbooking, double-booking, and under-staffing. It can even send out automated reminders to customers, so they don’t miss their appointments. These also notify them if a schedule change must be made.

Online scheduling software removes the stress of scheduling appointments for a fraction of the cost of hiring an extra employee.