We hope this newsletter finds you well. As a leading compliance consulting firm, our mission is to keep you informed about the latest legislative changes that may impact your business operations and to offer you solutions so that you can focus on the business while we focus on your compliance.
What happened to Spring? This cold snap, storms and snow- wow.
My heart goes out to the farmers and the effect this will have on Cold temperatures and frost can damage sensitive crops, especially those in flowering or fruiting stages. Extreme cold can also pose risks to livestock, especially young animals.
Cold stress can lead to health problems and mortality. This can lead to reduced yields and financial losses for farmers and ultimately lead to further shortages and price increases. Take a moment to also consider the vulnerable and poor.
Key Legislative Updates
The legal Sector B-BBEE Codes have been Gazetted with immediate effect – with no transitional period. Members of the legal profession did not have a sector code to guide them in addressing imbalances and inequality within the legal profession.
The Legal Sector Code (“LSC”) is therefore intended to address this gap. There are sufficient common commercial and professional characteristics in the legal sector to make it feasible and appropriate to develop a sector-specific code to address the unique characteristics of the legal sector.
The aim and objective of the LSC is to transform the legal sector in order to give effect to the objectives of the Constitution of promoting effective and sustainable economic participation by black people in the general economy of the Republic of South Africa and, in particular, the legal profession.
The Property Practitioners Regulatory Authority (PPRA) has reversed its decision to require Level 8 BEE compliance certificates for property practitioners applying for Fidelity Fund Certificates (FFCs). This decision marks a major shift in a policy that had caused concern across the industry, particularly among smaller property practitioners, and has been hailed as a win for businesses in the sector. The PPRA still mandates that all property practitioners, not just estate agents, must possess a FFC.
The Property Practitioners Act still stipulates that FFCs may only be issued to applicants with a valid B-BBEE certificate, even though the requirement for BEE compliance at a specific level has been relaxed. At least for now, the PPRA is reverting back to accepting that ‘valid’ cannot be taken to mean ‘compliant’ with B-BBEE. This is not the end and our advice is for companies to at least obtain a compliant level 8 B-BBEE Certification.
Data Protection Act Amendments:
The Protection of Personal Information Act (POPIA) is undergoing significant amendments to align with international standards and address evolving data privacy concerns.
Key changes include: Increased penalties for non-compliance: Fines for data breaches and other violations have been substantially increased.
Expanded definition of personal information: The definition now includes biometric data and online identifiers, requiring stricter data protection measures.
New obligations for data transfers: Organizations must conduct data impact assessments before transferring personal data outside South Africa.
Changes to tax rates:
There have been adjustments to corporate tax rates, personal income tax brackets, and VAT rates. The corporate tax rate has been reduced from 28% to 27% for the 2023/2024 tax year. This reduction aims to stimulate economic growth and attract foreign investment. Certain small businesses may qualify for a lower corporate tax rate, known as the small business tax rate. Revised tax incentives: Certain tax incentives and deductions have been modified or discontinued. Increased enforcement measures: SARS has implemented stricter enforcement measures to combat tax evasion and non-compliance.
Employment Equity Act Amendments:
The Employment Equity Act has been updated to address issues of discrimination and promote workplace equality. Key changes include Revised Employment Equity: Companies are required to implement more stringent affirmative action measures to increase the representation of historically disadvantaged individuals in their workforce. With a reported 3000 + inspectors doing the rounds you can be sure there will be a knock on your door. Remember you cannot generally refuse access to your premises to a Department of Labour inspector. The Department of Labour has broad inspection powers under South African labour law. Inspectors are authorized to enter workplaces to investigate compliance with various labour regulations, including Minimum wage laws, Working hours and overtime, Health and safety standards, Employment equity and Workplace discrimination. Refusing access to an inspector can be considered an obstruction of justice and may result in penalties or legal action.
How Can We Help You?
Our team of consultants can assist you in understanding and complying with these legislative changes. We offer comprehensive compliance services, including:
Legislative analysis and interpretation
Compliance assessments and certification
Risk management strategies
Training and education
Representation in regulatory proceedings like EE Meetings, skills Meetings and OHS Audit meetings.
By staying informed and proactive, you can ensure that your business remains compliant with the latest regulations and avoid costly penalties.
We encourage you to reach out to our team for a consultation to discuss how we can help you navigate the ever-changing regulatory landscape.
Three months till year end – we wish you every success with your business.
Sincerely,
Hilton
The Compliance Hub Consulting Team
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