Making Changes to Employment Terms & Conditions: A Guide for Employers within the Hairdressing, Cosmetology, and Beauty Industry
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As an employer within the Hairdressing, Cosmetology, and Beauty Industry, there may be times when you need to make changes to your employees' working conditions. This guide will help you understand how to make these changes legally and fairly, protecting both your business and your employees' rights.
1. What Are Terms and Conditions of Employment?
Terms and conditions include:
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Working hours and schedules
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Salary or commission structures
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Leave entitlements
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Job responsibilities
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Workplace location
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Benefits
2. Legal Requirements for Making Changes
Step-by-Step Process
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Document the business reason for the change
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Consult with affected employees
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Provide written notice of proposed changes
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Allow time for feedback and negotiation
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Document all agreements in writing
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Implement changes only after agreement
3. Compliance Checklist
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Do you have a valid operational requirement for the change?
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Have you provided written notice to all affected employees?
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Have you conducted individual or group consultations?
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Are the proposed changes in line with the National Minimum Wage Act?
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Have you documented all discussions and agreements?
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Have you given reasonable notice before implementation?
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Have you updated employment contracts or provided written amendments?
4. Practical Examples:
Example 1: Changing Working Hours
Scenario
A salon needs to extend its operating hours to accommodate client demands or changes to the rental agreement with the landlord of a shopping centre, requiring changes to staff working hours.
Recommended Approach:
1. Documentation Phase
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Write a business case explaining the need for extended hours
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Outline current vs. proposed schedules
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Calculate impact on staff earnings and operations
2. Consultation Phase
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Schedule individual meetings with affected staff
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Present the business case
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Discuss impact on personal circumstances
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Consider alternative suggestions
3. Implementation Phase
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Provide written notice of final changes
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Issue contract amendments
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Allow minimum 30 days’ notice before implementation
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Monitor and address any issues
4. Sample Communication Timeline:
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Week 1: Initial announcement and individual consultations
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Week 2-3: Feedback collection and adjustments
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Week 4: Final agreement and documentation
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Weeks 5-8: Notice period before implementation
Example 2: Modifying Commission Structures
Scenario
A salon needs to adjust its commission structure due to changing business conditions and service pricing updates.
Current Structure Example:
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Base salary: R6, 000 per month
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Commission: 40% on services
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Product sales commission: 10%
Proposed Structure Example:
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Base salary: R6,000 per month
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Tiered commission:
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30% on first R20,000 of services
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35% on R20,001-R35,000
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45% on services above R35,000
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Product sales commission: 15%
Recommended Approach:
1. Analysis Phase
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Calculate impact on each affect employee’s earnings using past 6 months' data
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Prepare comparison sheets showing potential earnings under both systems
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Document business justification for changes
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Ensure compliance with National Minimum Wage Act and prescribed conditions contained in the Main Collective Agreement of the National Bargaining Council for Hairdressing, Cosmetology, Beauty, and Skincare Industry.
2. Preparation Phase
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Create detailed written proposals
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Prepare individual earnings projections
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Design transition plan
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Draft new commission agreements
3. Consultation Phase
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Hold group meeting to explain overall changes
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Schedule individual meetings with each affected employee
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Present personalized earnings projections
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Discuss concerns and gather feedback
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Consider counter-proposals
4. Documentation Phase
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Record all meetings and agreements
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Create new commission contracts
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Prepare calculation sheets and examples
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Document any special arrangements or exceptions
5. Implementation Phase
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Provide minimum 30 days’ written notice
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Ensure payroll system updates
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Train staff on new commission calculations
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Set up monitoring system
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Plan regular reviews
Important Considerations for Commission Changes
1. Legal Requirements
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Total earnings must meet National Minimum Wage requirements
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Commission structure must be clearly documented
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Payment terms must be specified
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Record-keeping requirements must be met
2. Transition Period Best Practices
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Consider implementing a "guarantee period" where employees receive the higher of old or new structure
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Provide training on maximizing earnings under new structure
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Set up regular check-ins during first 3 months
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Be prepared to make adjustments if unforeseen issues arise
3. Communication Tools
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Commission calculation sheets
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Earnings projection templates
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Performance tracking tools
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Regular earnings reports
4. Common Pitfalls to Avoid
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Implementing changes during peak seasons
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Complex structures that are hard to understand
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Insufficient training on new systems
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Lack of transparent tracking methods
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Poor timing of announcements
Sample Implementation Timeline
Week 1-2:
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Analyse current earnings
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Prepare proposals
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Create documentation
Week 3-4:
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Group announcements
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Individual consultations
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Gather feedback
Week 5-6:
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Finalize structure
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Prepare contracts
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Update systems
Week 7-10:
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Notice period
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Training sessions
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System testing
Week 11 onwards:
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New structure implementation
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Regular monitoring
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Feedback collection
Success Metrics to Monitor
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Employee retention rates
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Average earnings comparisons
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Service booking rates
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Product sales performance
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Employee satisfaction
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Client satisfaction
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Overall revenue impact
Additional Commission-Specific Resources
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Commission calculation templates
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Performance tracking sheets
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Employee earnings projection tools
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Training materials for new structure
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Review meeting schedules
Remember: Commission structure changes directly impact employee earnings and motivation. Clear communication, fair implementation, and proper monitoring are crucial for successful transitions.
5. Common Mistakes to Avoid
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Making changes without consultation
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Failing to document agreements
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Implementing changes too quickly
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Ignoring employee feedback
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Not providing written notice
6. Legal Protections for Employees
Employees have the right to:
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Refuse unilateral changes
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Refer disputes to the CCMA and or Bargaining Council
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Claim constructive dismissal in severe cases
7. Best Practices for Success
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Maintain open communication
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Document everything in writing
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Be flexible and consider alternatives
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Provide reasonable implementation timeframes
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Ensure changes are applied fairly
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Keep records of all consultations
Need Help?
Contact your EOHCB representative to consult on the need for changes and for assistance with the process.
Remember: Fair and legal changes to employment terms require patience, documentation, and proper consultation. When done correctly, they can help your business adapt while maintaining positive employee relations. Failure to follow procedure, may result in disputes being referred to the CCMA and or Bargaining Council for unilateral changes to conditions of employment, which will have a negative impact on the employment relationship with negative financial consequences for you as an employer.
EOHCB Contact Details
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