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SOUTH AFRICAN QUALIFICATIONS AUTHORITY 
REGISTERED UNIT STANDARD THAT HAS PASSED THE END DATE: 

Explain the application of the Basic Conditions of Employment Act and its effect on earnings in own contract 
SAQA US ID UNIT STANDARD TITLE
119916  Explain the application of the Basic Conditions of Employment Act and its effect on earnings in own contract 
ORIGINATOR
SGB Insurance and Investment 
PRIMARY OR DELEGATED QUALITY ASSURANCE FUNCTIONARY
-  
FIELD SUBFIELD
Field 03 - Business, Commerce and Management Studies Finance, Economics and Accounting 
ABET BAND UNIT STANDARD TYPE PRE-2009 NQF LEVEL NQF LEVEL CREDITS
Undefined  Regular  Level 2  NQF Level 02  2 
REGISTRATION STATUS REGISTRATION START DATE REGISTRATION END DATE SAQA DECISION NUMBER
Passed the End Date -
Status was "Reregistered" 		 2018-07-01  2023-06-30  SAQA 06120/18 
LAST DATE FOR ENROLMENT LAST DATE FOR ACHIEVEMENT
2024-06-30   2027-06-30  

In all of the tables in this document, both the pre-2009 NQF Level and the NQF Level is shown. In the text (purpose statements, qualification rules, etc), any references to NQF Levels are to the pre-2009 levels unless specifically stated otherwise.  

This unit standard replaces: 
US ID Unit Standard Title Pre-2009 NQF Level NQF Level Credits Replacement Status
10717  Examine the applications of the Basic Conditions of Employment Act and its effect on earnings in own contract  Level 2  NQF Level 02  2   

PURPOSE OF THE UNIT STANDARD 
This Unit Standard provides a broad introduction to the financial implications of the Basic Conditions of Employment Act and its application to a work contract. The Unit Standard is intended to inform and empower learners so that they understand the financial aspects of their own work contracts and their rights and responsibilities under this Act. The focus is on financial literacy and knowledge, skills, values and attitudes in relation to the learner's own context.

The qualifying learner is capable of:
  • Explain the financial elements of an employment contract.
  • Interpret standard deductions reflected on a salary advice.
  • Explain the financial responsibilities that a company has to its employees.
  • Explain the responsibilities of the employee to her/his employer. 
    		•

    LEARNING ASSUMED TO BE IN PLACE AND RECOGNITION OF PRIOR LEARNING 
    It is assumed that learners are competent in:
  • Communication at NQF Level 1 or equivalent.
  • Mathematical Literacy at NQF Level 1 or equivalent. 
    		•

    UNIT STANDARD RANGE 
    The typical scope of this Unit Standard is

    The types of employment types include: temporary, permanent, contractual and part-time employment.
  • Deductions from salary advice include, but are not limited to, Pension/provident fund, Retirement Annuities, union fees, medical aid, tax, insurance cover on group schemes UIF, PAYE or Site, and garnishee orders if legally sanctioned.
  • Employers' financial obligations to employees include basic salary/wage; annual salary review, leave pay, monthly payment date, allowances and benefits.
  • Non productive activities include abuse of the Internet, email, fax, phones, stationary, misuse of resources includes abuse of sick leave, telephones, company property and time.
  • Allowance and benefits are those that apply to the learner.
  • Different kinds of pay include salary/wages, medical aid subsidy, company contribution to the pension scheme, bonuses and other company specific contributions/payments.
  • Financial implications of different employment contracts include monthly, hourly and daily rates.
  • Annual salary increases refer to cost of living or merit increases. 
    		•

    Specific Outcomes and Assessment Criteria: 

    SPECIFIC OUTCOME 1 
    Explain the financial elements of an employment contract. 

    ASSESSMENT CRITERIA     

    ASSESSMENT CRITERION 1 
    The requirements of the Basic Conditions of Employment Act are explained with reference to remuneration, tax and the legal procedures required before deductions may be drawn from an employee's salary. 

    ASSESSMENT CRITERION 2 
    The financial implications of different forms of employment are explored with reference to selection, recruitment, benefits, dismissal, resignation and the way in which the contract is structured. 

    ASSESSMENT CRITERION 3 
    The difference between Gross and Net income is explained with reference to an employment contract, total package, cost to company and take home pay. 

    ASSESSMENT CRITERION 4 
    The conditions of payment for overtime pay are outlined with reference to the Basic Conditions of Employment Act. 

    ASSESSMENT CRITERION 5 
    The different financial implications of legislation relating to leave are indicated with reference to annual, maternity, sick, special and unpaid leave in own contract. 

    ASSESSMENT CRITERION 6 
    The legal requirements relating to termination and severance of employment are explained with reference to own contract. 

    ASSESSMENT CRITERION 7 
    The concept of structuring a package in terms of allowances and benefits is explained with reference to cost and benefit implications for both employer and employee. 

    ASSESSMENT CRITERION 8 
    Annual increases or salary reviews are explained with reference to own contract and the changing economic climate. 

    SPECIFIC OUTCOME 2 
    Interpret standard deductions reflected on a salary advice. 

    ASSESSMENT CRITERIA     

    ASSESSMENT CRITERION 1 
    Standard deductions from own salary or wage are identified and the nature of, and reasons for, such deductions are given with reference to own salary advice. 

    ASSESSMENT CRITERION 2 
    Compulsory and voluntary deductions from a salary advice are identified with examples from own salary advice. 

    ASSESSMENT CRITERION 3 
    Reasons for the limit of 25% on salary deductions are explained with reference to three case studies. 

    ASSESSMENT CRITERION 4 
    Information on salary advice is used to check that the amount paid out is correct. 

    SPECIFIC OUTCOME 3 
    Explain the financial responsibilities that a company has to its employees. 

    ASSESSMENT CRITERIA     

    ASSESSMENT CRITERION 1 
    The concept of trading one's labour for remuneration is explained with reference to own experience. 

    ASSESSMENT CRITERION 2 
    The value of an employee's labour is discussed, with reference to work performance, productivity and ethics. 

    ASSESSMENT CRITERION 3 
    The cost to the employer of providing ad hoc recognition for value added by the individual is discussed with reference to the relationship between the employer, the line manager and the employee. 

    SPECIFIC OUTCOME 4 
    Explain the responsibilities of the employee to her/his employer. 

    ASSESSMENT CRITERIA     

    ASSESSMENT CRITERION 1 
    The employee's responsibility to the employer is described in relation to attendance, punctuality, productivity, reliability, use of resources and company and other loans. 

    ASSESSMENT CRITERION 2 
    The cost of own time to the company is calculated in hourly, daily, weekly, monthly and yearly rates. 

    ASSESSMENT CRITERION 3 
    The cost of an employee to the company over and above the employment contract is described, including the cost of space, time, telephone, resources, all forms of remuneration, training and incidental expenses. 

    ASSESSMENT CRITERION 4 
    Non-productive activities that impact negatively on business profitability are indicated in a table and an indication of cost to the company of each is discussed. 


    UNIT STANDARD ACCREDITATION AND MODERATION OPTIONS 
  • Anyone assessing a candidate against this Unit Standard must be registered as an assessor with the relevant ETQA or ETQA where a Memorandum of Understanding (MOU) exists with the relevant ETQA.
  • Any institution offering learning that will enable achievement of this Unit Standard must be accredited as a provider through the relevant ETQA or ETQA where a Memorandum of Understanding (MOU) exists with the relevant ETQA.
  • Moderation of assessment will be overseen by the relevant ETQA according to the moderation guidelines and the agreed ETQA procedures. 
    		•

    UNIT STANDARD ESSENTIAL EMBEDDED KNOWLEDGE 
    N/A 

    UNIT STANDARD DEVELOPMENTAL OUTCOME 
    N/A 

    UNIT STANDARD LINKAGES 
    N/A 


    Critical Cross-field Outcomes (CCFO): 

    UNIT STANDARD CCFO ORGANISING 
    The learner is able to organise and manage him/herself by undertaking personal research and taking initiative to negotiate the best possible financial conditions of his/her own contract. 

    UNIT STANDARD CCFO COLLECTING 
    The learner is able to collect, organise and critically evaluate information by investigating his/her own employment contract to ensure that he/she negotiates the best possible financial package with his/her employer. 

    UNIT STANDARD CCFO COMMUNICATING 
    The learner is able to communicate effectively using visual, mathematics and language skills in the modes of oral and written presentations when explaining the terms of his/her employment contract and the rights and responsibilities of the employee and employer. 

    UNIT STANDARD CCFO DEMONSTRATING 
    The learner is able to demonstrate an understanding of the world as a set of related systems by recognising how irresponsible decisions about the use of time, space and other resources impact on the company, the employer and oneself. 

    UNIT STANDARD CCFO CONTRIBUTING 
    The learner is able to participate as a responsible citizen in the life of local, national and global communities by beginning to understand the responsibilities undertaken when entering into contracts of any kind. 

    UNIT STANDARD ASSESSOR CRITERIA 
    N/A 

    REREGISTRATION HISTORY 
    As per the SAQA Board decision/s at that time, this unit standard was Reregistered in 2012; 2015. 

    UNIT STANDARD NOTES 
    This unit standard replaces unit standard 10717, "Examine the applications of the Basic Conditions of Employment Act and its effect on earnings in own contract", Level 2, 2 credits. 

    QUALIFICATIONS UTILISING THIS UNIT STANDARD: 
      ID QUALIFICATION TITLE PRE-2009 NQF LEVEL NQF LEVEL STATUS END DATE PRIMARY OR DELEGATED QA FUNCTIONARY
    Elective  48783   National Certificate: Financial Services  Level 2  NQF Level 02  Passed the End Date -
    Status was "Reregistered"     		 2023-06-30  INSETA 


    PROVIDERS CURRENTLY ACCREDITED TO OFFER THIS UNIT STANDARD: 
    This information shows the current accreditations (i.e. those not past their accreditation end dates), and is the most complete record available to SAQA as of today. Some Primary or Delegated Quality Assurance Functionaries have a lag in their recording systems for provider accreditation, in turn leading to a lag in notifying SAQA of all the providers that they have accredited to offer qualifications and unit standards, as well as any extensions to accreditation end dates. The relevant Primary or Delegated Quality Assurance Functionary should be notified if a record appears to be missing from here.
     
    NONE 


    All qualifications and part qualifications registered on the National Qualifications Framework are public property. Thus the only payment that can be made for them is for service and reproduction. It is illegal to sell this material for profit. If the material is reproduced or quoted, the South African Qualifications Authority (SAQA) should be acknowledged as the source.