After a challenging 2014 we, as business owners, can look forward to what will hopefully be a prosperous 2015.

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1 IN THIS ISSUE In this issue we discuss: Foreword Mr JJ Barkhuizen (CEO) page 1; The Employment Equity Commission and Affirmative Action page 2; Employee or not? page 4; Werknemer of nie? page 7; Get in touch with Us page 10 FOREWORD After a challenging 2014 we, as business owners, can look forward to what will hopefully be a prosperous Seena Legal Consult is excited to announce the expanding of our products and services. New products and services include: A new training product namely: How to sell. We believe that your company s sales personnel will greatly benefit from this product. A labour law handbook which is currently in the final stages of development. We will keep you informed as soon as it goes to print. An introductory course for employers of domestic workers aimed to educate and coincide with the new minimum wage and employment conditions which take effect on 1 April We also intend on including the domestic workers themselves in the afternoon session where the terms and conditions of the compulsory employment contract can be read, discussed, printed and entered into. During the course of 2015 we will be introducing a group provident scheme, whereby employers will be able to obtain benefits, such as: death, disability and pension cover for their employees at highly affordable rates. Lastly note that you will find all contact particulars at the bottom of this newsletter. We remain first, and foremost, a labour service provider to you, our valued client. We look forward to being of service in JJ Barkhuizen MANAGING DIRECTOR VOLUME 1 FEBRUARY 2015 Page 1

2 THE EMPLOYMENT EQUITY COMMISSION AND AFFIRMATIVE ACTION DO YOU EMPLOY 25 EMPLOYEES OR MORE? IF YES YOU ARE LEGALLY OBLIGED TO COMPLY WITH THE AFFIRMATIVE ACTION ACT Introduction The Affirmative Action Act, Act 29 of 1998 (here-in after referred to as the AA-Act) is legislation that regulates equal and fair practices in the workplace and governs affirmative action in Namibia. The term Affirmative Action can be defined as a set of measures designed to ensure that persons in designated groups enjoy equal employment rights and opportunities at all levels. Who should comply with the AA-Act? All employers who employee 25 employees or more are deemed relevant employers in terms of the provisions of section 20 of the Act and should comply. Who regulates the compliance of the AA-Act? The Employment Equity Commission established by the Act is a high profile body, the members of which are appointed by the Minister of Labour with the approval of the National Assembly. The Employment Equity Commission is accorded overall responsibility to achieve the objects of the Act. What does compliance with the AA-Act entail? All relevant employers must submit a 3-year Affirmative Action plan and annual follow-up reports. The Plan and/or annual reports should include the following: VOLUME 1 FEBRUARY 2015 Page 2

3 Confirmation of employment regarding Non-Namibians and the assignment of understudies for every Non-Namibian employed. A formal understudy training program is to be put in place; Employers are expected to conduct a workforce analysis and prepare a statistical report based on designated- and non-designated groups as well as occupational levels; An Employment Equity Committee needs to be established with quarterly Employment Equity Committee Meetings to be held; There needs to be open discussion on employment practices, with any barriers to the advancement of previously disadvantaged Namibians to be identified. A three year Affirmative Action Plan, with measures to eliminate identified barriers, are to be set in place; The initial three year Affirmative Action Plan is followed-up with annual evaluation reports. What are the consequences if I do not comply with the provisions of the AA-Act? Section 47(2) of the AA-Act reads as follow: Any relevant employer who contravenes or fails to comply with section 23, 24, 25, 27, 28, or 39(2)(b) shall be guilty of an offence, and on conviction be liable - (a) (b) for a first offence, to a fine not exceeding N$4 000 or to imprisonment for a period not exceeding 12 months, or to both such fine and imprisonment; and for a second or subsequent offence, to a fine not exceeding N$ or to imprisonment for a period not exceeding 5 years, or to both such fine and imprisonment. How can Seena Help? As with Seena Labour, Employers can join Seena Employment Equity, who will render the assistance outlined below at a reasonable, monthly, all inclusive rate. Our Employment Equity services include: VOLUME 1 FEBRUARY 2015 Page 3

4 (i) Upon receipt of relevant statistics SEENA EE will draft and furnish the Client with an Employment Equity Plan (AA-Plan). This plan shall be drafted in accordance with the instructions of the Client and the directives given by the client s EE committee; (ii) Submission of the completed AA-plan to the Office of the Employment Equity Commissioner; (iii) Seena will follow up and assist in rectifying any shortcomings in the AA-plan as may be issued by the Employment Equity Commissioner following submission; (iv) Assistance and advice regarding the Affirmative Action Act, 29 of 1998; (v) Consultations and on-site visits; (vi) Telephonic consultation and advice; (vii) Attend and minute on site meetings with the EE committee. Should you require further information or wish to contact as you can do so at beeadmin@seenlegal.com or phone as at: or EMPLOYEE OR NOT? If it looks like a duck, walks like a duck and quacks like a duck, then it's a duck, not a chicken. The strict labour legislation in Namibia is responsible for all kinds of schemes which employers improvise in order to avoid frustrating legislation that may apply to them. Once these schemes are exposed it could however cost such employers dearly. The most common scheme of course is too disguise the relationship between the parties as that of an independent contractor or volunteer relationship" instead of the employer/employee relationship that it in actual fact is. In a 2014 South-African Labour Court decision: Universal Church of the Kingdom of God v CCMA and others (2014 ) 3 BLLR 295 ( LC ), the court has once again seen right through such a scheme. The biggest problem with these type of cases is that the "employer" does not follow the correct procedures when terminating the relationship, because of the artificial construction that the employee is a so-called contractor or volunteer. The moment the court rules that VOLUME 1 FEBRUARY 2015 Page 4

5 the other party was in fact an employee the dismissal will without doubt be procedurally unfair. The facts of the above mentioned case in short amounts to the following: After admission as a student pastor, the applicant in this case entered into a Declaration of Voluntary Service with the Church, whereby he would render services to the Church on a volunteer basis. At some point, due to specific misconduct, he was dismissed. The pastor referred his case to the CCMA as an unfair dismissal. The Church of course, claimed that he was not an employee but a volunteer. The pastor however worked more than 40 hours a month, received remuneration for his services, was under the control and supervision of the Bishop, and the Church provided him with equipment, an office etc. They even deducted tax from his remuneration. As a result the CCMA rejected the church s argument with little ceremony and found that the pastor was not a volunteer but an employee. Just as the CCMA, Labour Commissioners in Namibia uses certain criteria in order to determine the actual nature of the relationship between the parties and not necessarily the signed agreement between the parties. They look at the practical facts of the relationship and what conclusion may be drawn from it. The guidelines that are being used are those contained in the Labour Amendment Act, Act 2 of 2012, which reads as follows: 128A. For the purposes of this Act or any other employment law, until the contrary is proved, an individual who works for or renders services to any other person, is presumed to be an employee of that other person, regardless of the form of the contract or the designation of the individual, if any one or more of the following factors is present: (a) the manner in which the individual works is subject to the control or direction of that other person; (b) the individual s hours of work are subject to the control or direction of that other person; (c) in the case of an individual who works for an organisation, the individual s work forms an integral part of the organisation; VOLUME 1 FEBRUARY 2015 Page 5

6 (d) the individual has worked for that other person for an average of at least 20 hours per month over the past three months; (e) the individual is economically dependent on that person for whom he or she works or renders services; (f) the individual is provided with tools of trade or work equipment by that other person; (g) the individual only works for or renders services to that other person; or (h) any other prescribed factor. From the above it should be clear that the Act creates a presumption that any person working for, or rendering services, to another person is deemed to be an employee of that person (or entity) if one or more of the above factors are present. Along with the provisions of section 128A the Courts also apply the dominant impression test on the facts emerging from each case. As previously stated any signed agreement between the parties is irrelevant. It is therefore very difficult, especially were more than one of the above mentioned factors are present, to rebut the presumption of an employer/ employee relationship. In the majority of everyday scenarios, at least three or four of the above mentioned factors are usually present. This brings us full circle: If it looks like a duck, walks like a duck and quacks like a duck, then it's a duck and not a chicken. So-called independent contractors or volunteers are often keen to sign agreements in order to be treated as contractors/volunteers. This can be directly attributed to the financial benefits of such arrangements as they can avoid statutory deductions and therefor have more money in their pockets. It is however once this relationship has come to an end that they seek more benefits such as leave pay, notice pay or the legal protection that would VOLUME 1 FEBRUARY 2015 Page 6

7 otherwise have only been afforded an employee, that they make an abrupt turn and would then like to be treated as employees. Employers are cautioned to be very careful when attempting to use these type of schemes. It simply does not work and could cost you dearly. WERKNEMER OF NIE? As dit lyk soos n eend, loop soos n eend en kwaak soos n eend, dan is dit n eend, nie n hoender nie. Die streng Arbeidswetgewing in Namibia is verantwoordelik vir allerande skemas wat werkgewers uitdink om frustrerende wetgewing wat op hulle van toepassing mag wees te omseil. Dit kom baie werkgewers natuurlik duur te staan as daardie skema ontmasker word. Die mees algemene skema is natuurlik om die verhouding tussen die partye in te klee asof dit n onafhanklike kontrateur of vrywilliger verhouding is in stede van die werkgewer/werknemer verhouding wat dit in werklikheid is. In n 2014 beslissing van die Suid-Afrikaanse Arbeidshof: Kingdom of God v KVBA en andere (2014) 3 BLLR 295 (LC), het die hof weereens deur so n skema gesien. Die grootste probleem met hierdie tipe sake is dat die werkgewer nie die korrekte prosedures by diensbeïndiging volg nie vanweë die kunsmatige konstruksie dat die wernemer n sogenaamde kontrakteur of vrywilliger is. Sodra die hof dan bevind dat die verhouding inderdaad een van werkgewer/werknemer is volg dit sonder twyfel dat die ontslag prosedureel onbillik. Die feite van bogemelde saak is in kort as volg: Na toelating as n leerling pastoor het die applikant in hierdie saak n sogenaamde Verklaring van Vrywillige Diens met die kerk aangegaan waarvolgens hy dienste aan die kerk op vrywillige basis sou lewer. Weens bepaalde wangedrag is hy toe op n stadium ontslaan. Die pastoor het sy saak na die CCMA as n onbillike ontslag verwys. Die Kerk het natuurlik beweer dat hy nie n werknemer was nie maar n vrywilliger. Die pastoor het egter meer as 40 ure per maand gewerk, vergoeding daarvoor ontvang, was onder beheer en toesig van die Biskop en was deur die kerk voorsien van toerusting, n kantoor ens. Hulle het VOLUME 1 FEBRUARY 2015 Page 7

8 selfs belasting van sy vergoeding afgetrek. Die CCMA het die argument met min seremonie verwerp en bevind dat die pastoor nie n vrywilliger was nie maar n werknemer. Net soos die CCMA gebruik Arbeidskommmissarisse in Namibia bepaalde riglyne om te bepaal wat die werklike aard van die verhouding tussen die partye was, en nie noodwendig die getekende ooreenkoms tussen die partye nie. Daar word gekyk na die praktiese feite in die verhouding en welke afleiding daaruit gemaak kan word. Die riglyne wat gebruik word is vervat in die bepalings van Arbeidswysigingswet, Wet 2 van 2012, wat lees as volg: 128A. For the purposes of this Act or any other employment law, until the contrary is proved, an individual who works for or renders services to any other person, is presumed to be an employee of that other person, regardless of the form of the contract or the designation of the individual, if any one or more of the following factors is present: (a) the manner in which the individual works is subject to the control or direction of that other person; (b) the individual s hours of work are subject to the control or direction of that other person; (c) in the case of an individual who works for an organisation, the individual s work forms an integral part of the organisation; (d) the individual has worked for that other person for an average of at least 20 hours per month over the past three months; (e) the individual is economically dependent on that person for whom he or she works or renders services; (f) the individual is provided with tools of trade or work equipment by that other person; (g) the individual only works for or renders services to that other VOLUME 1 FEBRUARY 2015 Page 8

9 person; or (h) any other prescribed factor. Uit bogenoemde is dit duidelik dat die wet n vermoede skep dat n persoon wat vir iemand werk of dienste aan iemand lewer, n werknemer van daardie ander persoon (of entiteit) is, solank een of meer van die gelyste faktore teenwoordig is. Tesame met die bepalings van artikel 128A gebruik die howe ook die dominante indruk toets soos dit uit die feite van elke saak na vore tree. Soos reeds voorheen gesê is, is die getekende ooreenkoms, idien enige, irrelevant. Gevolglik is dit baie moeilik, veral waar daar meer as een van die bo-genoemde faktore teenwoordig is, om die vermoede van n werkgewer/werknemer verhouding te weerlê. In die meerderheid van gevalle wat alledaags voorkom, is daar ten minste drie of vier van die bo-genoemde faktore teenwoordig. Dit bring ons terug by die begin: As dit lyk soos n eend, loop soos n eend en kwaak soos n eend, dan is dit n eend, nie n hoender nie. Sogenaamde onafhanklike kontrakteurs of vrywilligers is dikwels gretig om ooreenkomste te teken in terme waarvan hy/sy heel gewillig is om soos n kontrakteur of vrywilliger behandel te word. Dit kan grootliks toegeskryf word aan die finansiële voordele wat daaraan verbonde is, aangesien statutêre aftrekkings vermy word en die werknemer meer geld in sy sak kan sit. Dit is egter algemeen waar hierdie verhouding tot n einde kom en ander voordele soos verlof uitbetaling, kennisgeld of die wetlike beskerming wat andersins slegs vir n werknemer beskore sou wees, belangrik word dat die einste kontrakteurs of vrywilligers omswaai en dan werknemers wil wees. Werkgewers word gemaan om versigtig te wees om hierdie tipe skemas te gebruik. Dit werk eenvoudig nie en kan jou duur te staan kom. VOLUME 1 FEBRUARY 2015 Page 9

10 GET IN TOUCH WITH US Windhoek Office Address: c/o Church and Bismarck Street (Bismarck Village Unit 5), Windhoek Postal Address: PO Box 9315, Eros, Windhoek, Namibia Phone:(061) Fax:(061) Swakopmund Office Address:C/o Daniel Kamho & Smith Street, Apex Park, First Floor, Unit 19 Swakopmund Postal Address: PO Box 2022, Swakopmund, Namibia Phone: (064) Fax: (064) Keetmanshoop Office Address: C/o Hampie Plichta Street & 7th Avenue Keetmanshoop Postal Address: PO Box 1685, Keetmanshoop, Namibia Phone: (063) Fax: (063) VOLUME 1 FEBRUARY 2015 Page 10

11 Tsumeb Office Address: Gateway Office nr.2, Le Platz Shopping Centre, 1st Floor, Hage Geingob Drive, Tsumeb Postal Address: PO Box 837, Tsumeb, Namibia Phone: (067) Fax: (067) SEENA LEGAL is a Namibian Company with offices in Windhoek, Swakopmund, Keetmanshoop and Tsumeb.. VOLUME 1 FEBRUARY 2015 Page 11

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