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Comply with Employment Laws
to Prevent Undesirable Results

In order to ensure that no legal provision is broken, it is essential that you equip yourself with a good understanding of employment laws.


Sources of HR Legal Obligations
It is essential that your organization conducts an 'HR due diligence' exercise to ensure compliance with the existing laws.

Failure to follow provisions of the law is expensive in terms of money, time and negative publicity when your organization is dragged before the law courts.

Pay particular attention to sources of legal obligations including:

1. Employment contract which is either formal (written) or informal (oral agreement)
   
2. Essential terms and conditions including:
   
   • Salary / wages
     
   • Annual leave
     
   • Confidential information
     
   • Duties and responsibilities (including supervisory responsibilities)
     
   • Hours of work
     
   • Work location and transfer / secondment terms
     
   • Promotion policy and produces
     
   • Discipline policy and procedures
     
   • Bonuses
     
   • Overtime pay
     
   • Superannuation
     
3. Statutes governing labor and employment
   
4. Statutory Agreements
   
   An example is a collective agreement which is usually governed by the Trade Unions Act effective in the mother or adopted country of the organization.
5. Awards by state or federal tribunals
   
   These usually indicate the minimum terms and conditions of employment.
6. The common law which is case law developed in the court system.
   

The majority of these laws cover the area of employment contracts.

As stated elsewhere in this site, these include:

• Recruitment and Selection
  
• Human Right and Equal Employment Opportunities
  
• Job advertisement
  
• The Job Interview
  
• Occupational Health and Safety Requirements
  

Dismissal and Termination
Dismissal and termination are serious matters. This is why employment laws specify clear guidelines when and how organizations can do so.

Dismissals may follow when there is serious breach of any contractual term by employee or the breach of a fundamental term of the contract, serous misconduct or negative behavior that continues despite being warned and given the necessary counseling.

Where there is an express or implied terms permitting the employer to terminate the contract, you may do so but only under certain conditions.

You can also terminate employees due to redundancy or retrenchment. This is termination with a reason.

Compliance with the law covers areas such as:

• Summary dismissal (that is, termination without notice)
  
• Misconduct
  
• Criminal behavior
  
• Absenteeism
  
• Procedures for termination
  
• Unlawful or wrongful termination
  
• Notice of dismissal or termination where, for example, the required notice period is not given.
  

You may terminate an employee's service in accordance with the terms and conditions of appointment. This is sometimes referred to as 'termination simpliciter'.

However, the law provides that you may not terminate an employee without reason or just cause. This is in spite of the clause in appointment letters or employment contracts that either party - employer and employee - may give notice to terminate the employment. Of course, the employee may give notice at any time or pay the specified amount in lieu of notice.

If your organization terminate any employee with any reason, the law courts will question such action unless there are strong and compelling reasons that the termination shall stand.

There is no reason to believe that the court will support termination without cause.

New Employment Laws
Laws are being created all the time. Statutory laws are made by legislatures. The courts continue to create laws pertaining to HR matters when cases are brought before them for deliberation.

It is impossible to keep up-to-date on all the laws. Your legal advisers need to see to it that your organization always complies with the law.

As executives, at least get to know well the main provisions of the law governing human resource management.

Employment Laws
Your activities are subject to the laws of the country where you are operating.

For example, this link shows the extent and scope of the law.
http://www.dol.gov/compliance/guide/

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