No doubt the world as we know it has changed forever due to the current international health crisis spurred on by the COVID-19 pandemic, which is swiftly decimating global economies, and forcing businesses to reevaluate their ways of work, policies and financial strategies. In light of this, Alignment Consulting has been working tirelessly to measure the impact of the COVID-19 pandemic on the labour force, and offer proactive solutions to business owners on how to navigate the new challenges we now face.

As previously mentioned, COVID-19 has impacted businesses on every level from finances – operation – strategy – human capital. The impact of the COVID-19 pandemic on the workforce has affected and disrupted employee productivity, performance, presence and morale and has left employees feeling insecure about their existing jobs and uncertain of their future employment options.

Low productivity and loss of competitiveness can be considered outcomes of low morale and low motivation. They may sometimes lead to further undesired symptoms such as high levels of absenteeism, sabotage, misconduct, negligence, strikes, resignations and “go-slows”. 

Sadly many companies, especially the SME (Small Medium Enterprises), have experienced a severe and sudden decline in revenue and have had to implement short-time and salary pay cuts. Other companies have implemented forced, or unpaid leave as not all professions and company operations allow and can accommodate employees working remotely. Almost all companies have frozen recruitment with many turning to freelancers and consultants to fill the gaps.  

Regardless of the route you choose to follow as an employer, the letter of the law* is still in full force with absolutely no relaxation, particularly with regards to any amendments related to COVID-19 within the Basic Conditions of Employment Act and the Labour Relations Act. 

Business owners, at their discretion, can relax their Company Policies & Procedures or clauses within Employment Contracts with respect to certain things. Provided it is to the benefit of the employee. 

For example: Some companies have policies that restrict/prohibit company loans that could be relaxed by the business owner during lock-down should the business owner have the financial means. 

NOTE: Employers must consider The Occupational Health & Safety Act 85 of 1993 and ensure that their business is operating within the constraints of it at all times even more so during COVID-19.

Out of panic, and the need to save costs, we have found that many companies are not following procedure and law when it comes to retrenchment, forced leave, sick leave, layoffs and short-time. This has a boomerang effect as it will inevitably cost the company a lot more money should the employee refer the matter to the CCMA on the grounds of unfair dismissal or unfair labour practice. The employer cannot ignore or avoid the obligation of Procedural & Substantive Fairness regardless of a nationwide lockdown and the COVID-19 pandemic.

Alignment Consulting is fully equipped and ready to assist businesses and employers with short-term and long-term human resource strategies and solutions which assist in maintaining employee performance, controlling financial costs while supporting the operation of the business. We can offer guidance and assistance with Procedural Fairness, ensuring that your business explores the best scenarios for human capital that can save you time, money and legal repercussions. We are able and available to consult via Zoom, SKYPE, WhatsApp Video Call, E-mail or Telephone.

*Legal references for South African labour laws and statues:

• The Labour Relations Act 66 of 1995 (LRA)
  • Note: this law was amended in 2002. Text of the Labour Relations Amendment Act, 2002. 
• The Basic Conditions of Employment Act 75 of 1997 (BCEA).