The notes seen attached, provide an in depth summary of the Legislation section of the Business Studies syllabus required by the IEB.
These notes have been used to successfully complete the NSC final examinations, confidently and with ease.
Legislations
Constitution of South Africa
It was necessary to drastically amend the Constitution to ensure equality for all citizens
after the introduction of democracy in 1994. Democracy implies that all citizens,
regardless of colour, race, gender or culture, have the right to vote for the government.
Both private citizens and businesses fall under the Constitution, and it also forms the
basis of all other laws within the country.
Human Rights
Because of the history of Apartheid – Human Rights forms an important part of the
Constitution.
➔ The Bill of Rights spells out very detailed and specific rights and responsibilities
of all citizens of the country. The Constitution and the laws of the country will
protect you, but you have the responsibility to uphold those laws and the values
entrenched in that Constitution.
➔ Human rights are those basic and fundamental things that you are entitled to
just because you belong to the human race. They can not be taken away.
➔ Among those rights stipulated in the Bill of Rights are:
◆ Equality
◆ Freedom of expression and association (trade unions)
◆ Political and property rights
◆ Housing
◆ Health care
◆ Education
◆ Access to information
◆ Access to courts
◆ Children’s rights and women's rights
◆ Human dignity, discrimination
◆ Right to life
◆ Free from violence
➔ The Human Rights Commission will assist citizens that have their rights violated
to approach the Constitutional Court.
➔ Limitation Clause – sometimes it is necessary to limit certain rights as people’s
rights might conflict eg. I may have the right to freedom of expression, but if I
exercise that right in a way that threatens your dignity, then it is alienating one of
YOUR rights. Section 36 of the Constitution lays down the strict conditions for
these limitations.
,Inclusivity
Inclusivity is one of the basic rights in the Constitution – the right to have equal
opportunities and inclusion in all aspects of life within South Africa, and not to be
discriminated against.
➔ Specific laws and actions were needed to redress the problems of the past
(Apartheid) – eg. Skills Development Act that aims to provide training and
opportunities for all to improve their skills and earning capacity, EE Act, BBBEE
Act, affirmative action etc.
➔ No discrimination or stereotyping against race, disabilities or other medical
conditions (eg. aids) = same opportunities as everyone else.
Environmental Issues
Increasing technology, growing populations, urbanisation, increased pollution etc. have
led to increasing strains on our natural resources. Governments, businesses and
individuals all need to work together to address these issues and contribute towards
environmental management. Three principles relating to the environment are: (World
Economic Forum)
1. Supporting a precautionary approach to environmental challenges.
2. Undertaking initiatives to promote greater environmental awareness.
3. Encouraging the development and diffusion of environmentally friendly
technologies.
This is in line with the King Reports, JSE SRI and Triple Bottom Line Reporting.
Labour Relations Act (66 of 1995)
The Labour Relations Act (LRA) provides the basic legal framework for the South African
labour relations system.
Purpose
Main objectives:
1. Enforce the fundamental rights granted by section 23 of the Constitution.
, 2. Enforce SA’s international obligations as a member of the International Labour
Organisation.
3. Provide a framework for collective bargaining between trade unions and
employers
4. Promote effective resolution of labour disputes through employee participation
in decision making in the workforce.
The LRA applies to every employer and employee in every business in SA, except
members of the National Defence Force, the National Intelligence Agency and the South
African Secret Service.
The LRA governs or regulates the process of collective bargaining.
The act also covers issues such as freedom of association, Trade Unions, strikes, lock
outs, dispute resolution to unfair labour practices including unfair dismissal.
Functions of Trade Unions and employer organisations
★ Trade union: Any number of employees in a particular undertaking, industry,
trade or occupation associated together for the purpose of regulating relations
in that undertaking, industry, trade or occupation between themselves or some
of them and their employers or some of their employers.
★ Employers Organisations: Serves the same purpose as that of a Trade Union but
enables employers to work together to negotiate with trade unions in a specific
industry.
★ The Constitution guarantees the principle of Freedom of Association – this
affords employees the right to join a trade union of their choice, and employers
the right to join an employers organisation.
★ Trade unions and Employer organisations must be registered. In order to obtain
registration certain requirements must be met:
1. A proper constitution.
2. The constitution must be consistent with the LRA.
3. The Union should not be formed to evade any law, nor should it be
affiliated to any political party.
★ Registration allows them to be party to the Bargaining or Statutory council – this
means that wages and conditions of employment can be negotiated that may be
made binding in law.
Purpose of Trade union
➔ Main aim:
◆ Engage in collective bargaining with employers on behalf of the members
of the union.
Function of Trade union
➔ Protecting the rights of workers and ensuring fair treatment of members
➔ Improving conditions of service regarding:
◆ Salaries
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