2.1 Name ANY TWO provisions of leave as stipulated in the Basic Conditions of Employment Act (BCEA), 1997 (Act 75 of 1997) - NSC Business Studies - Question 2 - 2021 - Paper 1

The Labour Relations Act (LRA), 1995 grants several rights to employees, such as:

• The right to join a trade union: Employees have the freedom to join any trade union of their choice.
• The right to participate in collective bargaining: Employees can engage in negotiations regarding their working conditions, pay, and other employment terms.

2.3.1 Employees are unable to operate the modern machinery that has been purchased recently.

• Technological factors: This indicates a possible gap in employee training and technology adoption, which affects productivity.

2.3.2 Management received a fine for dumping their waste material in the river.

• Environmental factors: The fine indicates poor compliance with environmental regulations, which can lead to legal and financial repercussions.

2.3.3 Berry Farm can no longer export their products due to the unfavourable exchange rate.

• Economic factors: An unfavorable exchange rate affects the competitiveness of exports, reducing profit margins and market access.

The purpose of the Compensation for Occupational Injuries and Diseases Amendment Act (COIDA), 1997, is to provide compensation for employees who suffer work-related injuries or diseases. It ensures that workers receive financial support and medical treatment for injuries sustained in the course of their employment, thereby promoting workplace safety and protection for workers.

From the scenario, the following penalties were imposed on Money Bank for non-compliance with the National Credit Act (NCA):

• The National Credit Regulator imposed a fine for reckless granting of credit.
• Money Bank was instructed to bear all costs related to the removal of the names of blacklisted clients from the credit bureau.

The National Credit Act has several positive impacts on businesses:

• It promotes transparency in credit transactions, ensuring that both businesses and customers understand their rights and obligations.
• The act also protects businesses from non-paying consumers, reducing financial losses due to unpaid debts.

Defensive strategies are essential for businesses to maintain stability. Two examples include:

• Retrenchment: This involves reducing the workforce to cut costs during challenging economic times. It helps businesses remain viable but may affect morale.
• Liquidation: Businesses facing insolvency may apply for business rescue to avoid liquidation, thereby allowing a chance for restructuring rather than complete closure.

To comply with the Consumer Protection Act (CPA), businesses can:

• Disclose prices of all products clearly to avoid misleading customers.
• Provide adequate training to staff on consumer rights and responsibilities, ensuring the organization practices fair trading.