It is that time of year again where your staff start wondering whether you will be paying them a 13^th cheque or a Christmas bonus. We are often asked by employers if this is a mandatory payment. The answer is NO. This is a discretionary payment and therefore not a statutory requirement in labour law.

Typically employees want some sort of commitment by employers that they do pay 13^th cheques, and incentives and request this to be included in their employment contracts.  If you have included 13^th cheques in their employment contracts as an entitlement, ensure that the terms are specifically stated. If your business has had a bad year and is not in a position to pay bonuses and has consistently paid them in the past and this year you don’t pay bonuses it may be seen as a unilateral change in terms of and conditions of employment and or a breach of contract.  You have created an expectation that a bonus will be paid. It is therefore your duty to consult your employees as soon as you become aware that the possibility exists that you may not be paying them bonuses or may be paying them a reduced bonus payment or that no bonuses will be paid. The employee has the right to be heard before the decision is made and communicated.

It is not a good move to attach a letter to their December payslips informing them that bonuses were not paid this year or remain silent on the matter in the hopes that your employees will cool off over December and won’t broach the subject in the new year.

If you intend not to pay bonuses, I do hope the CEO hasn’t taken his annual “Bali retreat” this year… that would be a recipe for guaranteeing a disengaged workforce.

Mid-year financials should provide you with a good indication of profitability which may prevent you from paying bonuses at year-end.

Always keep the lines of communication open. It doesn’t have to be a problem unless you make it one. 

#discretionarypayments #stautoryrequirement #christmasbonus #13thcheque #employerobligations #yearendbonus #employeebenefits #employeeengagement

20 Benefits of Virtual HR Support

In today’s rapidly changing business environment, the shift to remote work and the increasing pace of digital transformation has made virtual HR support an invaluable resource, particularly for small and medium-sized enterprises (SMEs). Virtual HR services offer a flexible, cost-effective solution that enables businesses to streamline their HR processes, enhance employee engagement, and focus on strategic growth.

Twenty benefits of virtual HR support and why it’s a smart choice for modern businesses:

1. Cost-Efficiency and Flexibility
   • Reduced Overhead Costs: Eliminate the need for physical office space and other overhead expenses associated with an in-house HR department.
   • Pay for Services Only When Needed: Engage HR professionals on an as-needed basis, allowing for better budget management.
   • Flexibility to Scale HR Support as Your Business Grows: Easily adjust the level of HR support to match your company’s growth without the hassle of hiring and training new staff.
2. Access to Expertise and Specialized Skills
   • Tap into a Wide Range of HR Experts: Gain access to a diverse pool of HR professionals with varied expertise, from recruitment to employee relations.
   • Benefits from Up-to-Date Knowledge of Labour Laws: Ensure your business is always compliant with the latest employment regulations and labour laws.
   • Access to Specialized HR Services like Talent Sourcing and Performance Management solutions: Leverage specialized services such as talent acquisition to help you find the unfindable scarce skills and performance management systems that are tailored to your industry.
3. Improved Compliance and Risk Management
   • Regular Compliance Audits and Updates: Stay ahead of regulatory changes with ongoing audits and updates that minimize the risk of costly penalties.
   • Support in Drafting Legally Compliant HR Policies: Receive expert guidance in creating HR policies that are not only compliant with legal standards but also aligned with best practices.
   • Guidance on Handling Complex Employee Issues: Navigate difficult employee situations with the help of seasoned HR professionals who can offer objective advice and solutions.
4. Enhanced Employee Experience and Engagement
   • Employee Handbook for South African SMEs: Designed with the employee experience in mind, attract like-minded talent and protect your business. Easy read.
   • Digital HR Templates: Empower SMEs with HR best practices Ready-to-use, affordable Downloadable HR templates.
   • Streamlined Communication Channels for Remote Teams: Foster a strong company culture by facilitating clear and consistent communication among remote teams using digital tools and platforms.
5. Focus on Core Business Activities
   • Free Up Time for Strategic Business Growth: Allow your leadership team to concentrate on core business activities by outsourcing time-consuming HR tasks.
   • Let HR Professionals guide you in the right direction:  Virtual Human Resources consulting and processes to help you to navigate your human matters as they arise.
   • Reduce the Burden on Internal Management Teams: Alleviate the workload on your management team, enabling them to focus on driving business innovation and achieving long-term goals.

Virtual HR support offers significant advantages for businesses looking to optimize their HR functions while focusing on growth and innovation. By leveraging our services, companies can ensure compliance, improve employee engagement, and enjoy cost savings, all while maintaining the flexibility to adapt to the ever-changing business landscape.

Curious about our consulting options and rates, check them out here.

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