Companies do not only have the choice of applying for a full exemption to the LEP, but may choose to apply for total exemption, partial payment and / or a deferred or staggered payment.
Management’s attention is drawn to the importance of the council’s requirement that an application must be accompanied by the following important information in order for the application to be considered:
A fully detailed motivation explaining the difficulties that the company is experiencing and hence the need for the application.
Audited Financial Statements for the financial year ending 2014/2015. In the case of a closed corporation – a full set of financial statements which are to be signed by an Accounting Officer and the latest management accounts for the last three months. If the financial statements are older than six months, then the management accounts for the recent three months are required.
Formal confirmation that employees were informed of the company’s decision to make an application for exemption.
Where employees reject the company’s approach, they are to be informed of their right to submit written reasons for objecting to the exemption application and such reasons should be attached as an annexure to the company’s application.
The signature of at least two employees who accept being the representatives for the workforce and who will be affected by the application. Representatives of the workforce are to sign the form, contained in the exemption application questionnaire, consenting to this.
The signatures of employees accepting that they have been informed of the implications of what the firm is proposing to the Council.
Where the employees are trade union members, the company should inform the local trade union office of the intention to apply for an exemption and request, in writing, a meeting with the local official to discuss the impact of the exemption on the company and the members of the union.
Where employees have elected a trade union representative or representatives (shop stewards) these persons should be requested to sign that they were consulted and that they understand the need for applying for the exemption. Where the local trade union official and/or shop stewards have been consulted and where they reject the application, such refusal must be recorded in the application and countersigned by at least two witnesses.
Where the local trade union official and/or shop stewards and affected employees support the exemption application, this signed agreement should be included with the application.
It is recommended that all meetings in this regard between management, employees, shop stewards and union officials have signed attendance 5exemption application.
The application itself is to be signed by either a director of the firm, member, owner or a senior accountant – neither a bookkeeper nor the human resources manager’s signatures will be acceptable.
Any member wishing to apply for exemption is encouraged to contact the SEIFSA Industrial Relations and Legal Division for advice and assistance. Alternatively download the SEIFSA Management Brief and Pro-Forma Questionnaire on Applying for Exemption from the LEP at www.seifsa.co.za / …….