If you’re starting a new business, there are a million things you’re thinking about. One of the important aspects you need to consider is your legislative compliance, regardless of your sector or industry. This post outlines the 5 core regulatory frameworks that businesses in South Africa must be aware of:
- BCEA: The Basic Conditions of Employment Act will govern your employee relations as your business grows. Having a reliable HR/ER function in place is a critical consideration from the start. Ensuring you are compliant with minimum wage, having Contracts of Employment in place, ensuring your company has proper policies that govern your exact business model is critical to get right from the start. Then, your HR function must be flexible enough to grow with your business as you expand and new requirements arise.
- OHS: While this isn’t an entrepreneur’s first thought, even working from home and online has regulatory implications that you need to consider for Occupational Health and Safety compliance. Small offices that start with a strategy for OHS compliance can scale easier and minimize their risk as they grow.
- BEE: BEE is important to small businesses. B-BBEE can give you a competitive advantage to gain tender contracts, do more work with larger companies that are using BEE-compliant suppliers, and helping you strategically grow with your legislative compliance. Starting out, an Affidavit to confirm that you do not need to comply with BEE is sufficient, but it is important to get your support structure for BEE in place when you someday need it.
- Employment Equity: Transformation can be ingrained in the fibre of your business from the start. Hiring right from the start is key to growing a compliant and scalable business to ensure that you do not run into problems as you grow and cross thresholds.
- Skills Development: The most important legislative framework for any growing business is the Skills Development Act, which should be executed with your EE and BEE strategies. Your compliance with the Skills Development Act will allow you to gain funding for training yourself and your employees, benefit from tax rebates from SARS, and allow you to scale efficiently by upskilling your workforce and maximising productivity and efficiency.