Labour Legislation Compliance within the Small-Enterprise Sector

Abstract

The purpose of this study was to investigate how compliance with labour law—particularly the Labour Relations Act (LRA) and the Basic Conditions of Employment Act (BCEA)—could be promoted as sound governance practice. The study adopted a qualitative approach, and eight experts in the field were purposefully sampled and interviewed. The results suggested that small-enterprise owners were not knowledgeable about labour laws, hence their inability to comply with them. It was found that owners experienced labour laws as cumbersome, and their forced implementation had a negative impact on governance. It is suggested that different legal requirements be applied to the small-enterprise sector. Guidelines are proposed which legislators could use to assist the South African government in modifying the requirements of the LRA and the BCEA in respect of small enterprises. This study fills a gap in existing literature on small enterprises and governance in South Africa in the field of employment relations.