LEGAL COMPLIANCE
AUDITS AND EVALUATIONSLegal Compliance Evaluation
Legal Compliance is no longer an option for organisations. It is the duty of Top Management to ensure that the organisation’s privacy, data protection, labour, health, safety, and environmental legal risks are identified and mitigated. One of the viable ways of ensuring that this is done is by conducting Legal Compliance Evaluations. A Legal Compliance Evaluation highlights any deviations, areas of non-compliance, and risks within an organisation. It provides assurance to Top Management that sufficient internal controls are being implemented to mitigate legal risks and meet legal requirements.
Benefits of a Legal Compliance Evaluation
The benefits of Legal Compliance Evaluations include:
- Reducing the organisation’s potential legal liabilities through the identification and mitigation of legal risks such as penalties, fines, criminal charges, imprisonment and closure of operations.
- Demonstrating proactive efforts by the organisation that all legal requirements are being complied with.
- Improvement in the functionality of the area evaluated.
- A strengthening stakeholder confidence and providing assurance to clients that the organisation complies with legal requirements.
- A tool for ensuring that an organisation remains up to date with current legislation and regulatory requirements.
How frequently must a Legal Compliance Evaluation be conducted?
In the South African legal context, the frequency of a Legal Compliance Evaluation depends on the applicable legislation and regulatory requirements and the nature of the organisation’s operations. While specific legislation may not always prescribe how often evaluations must occur, best practice particularly in line with corporate governance principles such as those outlined in the King IV Report, recommends that legal compliance assessments be conducted at least annually. Regular evaluations help ensure ongoing compliance, reduce legal and reputational risks, and support sound governance and accountability within the organisation.
Environmental Legal Compliance Evaluations
Due to the reality of pollution and the deterioration of the environment, Environmental Legal Compliance Evaluations have become a necessity for organisations. Lack of compliance to environmental laws can result in cessation of operations, directives for the implementation of reasonable measures, penalties of up to R10 million and/or in the worst case 10 years imprisonment for employers.
A Legal Compliance Evaluation is an assessment of an organisationʼs performance against applicable environmental legislation, regulations, and permit conditions. It assists with understanding and tracking which legislation is applicable to the organisation, and its operations. This evaluation is a key component of an effective Environmental Management System and essential for maintaining regulatory compliance and avoiding penalties.
WWISE offers services for the systematic management of environmental risks through the implementation of ISO 14001:2015– Environmental Management System (EMS). Alongside the implementation of the EMS, is the need for organisations to adhere to compliance obligations. This is practically done through the Legal Compliance Evaluation. Where an organisation does not subscribe to an EMS, the Environmental Legal Compliance Evaluations can be utilised as a tool for ensuring that an organisationʼs legal requirements and objectives are up to date.
The Environmental Legal Compliance Evaluation entails:
Site Visits
Environmental Evaluations
Environmental Impact Assessment
Advice on all Environmental Legal Aspects
Benefits of Environmental Legal Compliance Evaluations
- Ensuring environmental compliance by identifying non-compliances with environmental legislation and license conditions to avoid finds, legal action, and operational disruptions.
- Early detection of harmful practices to reduce environmental impacts and protect natural resources to support sustainable operations. Identifying opportunities for waste minimisation, water conservation, and energy efficiency which will over time reduce operational expenses. Provides assurance that the organisation is committed to environmental responsibility and legal accountability. By establishing a baseline for environmental compliance, a solid foundation for the implementation of ISO 14001 can be created.
Health and Safety Legal Evaluations
The Occupational Health and Safety Act places a duty on the employer to provide and maintain a working environment that is safe and without risk to the health of the employees. The legislative health and safety needs of an organisation can change over time. As a result, it is important for an organisation to carry out Health and Safety Legal Evaluations on a regular basis to support health and safety compliance.
“In terms of occupational injuries, there was a 12% decrease in the number of injuries, from 2 669 in 2017 to 2 350 in 2018. The Department of Mineral Resources noted some slight increases in occupational diseases, although no medical deaths were recorded. Occupational diseases decreased by 3%, from 4 632 cases in 2016 to 4 483 cases in 2017.”
Department of Mineral Resources
WWISEʼs Health and Safety Legal Evaluations are a systematic, independent and documented means of appraising an organisationʼs system and processes against the relevant Health and Safety legislation. The aim of the evaluation is to create a basis for the implementation of a Health and Safety Management System such as ISO 45001. Where an organisation does not wish to undergo certification for the ISO 45001 Management System, Health and Safety Legal Evaluations identify the organisationʼs Health and Safety measures against the Occupational Health and Safety Act and associated regulations.
Costs of poor health and safety are high as a result of:
Fatalities and disabilities
Absenteeism or sick leave
Damaged equipment associated with occupational injuries
Time and money spent on injury investigation, workplace assessments
Changes to The Compensation for Occupational Injuries and Diseases Act (COIDA) or insurance premiums, due to the incidence of injuries and occupational illnesses
Production time lost as a consequence of an event which results in injury
What are the benefits of a Legal Health and Safety Evaluation?
- Workplace safety hazards and risks are identified, by assessing the workplace against legal standards and preventing incidents before they occur.
- Proactive detection of unsafe conditions promotes a safer working environment.
- Ensures that internal policies and procedures align with statutory and regulatory requirements.
- Supports accurate interpretation of SHEQ-related legislation, staying informed, and correctly applying legal obligations in daily operations.
Labor and Employment Law Services
South African labour and employment laws as well as relevant regulations are intricate and dynamic in nature. Therefore, it is important for organisations to stay abreast of legislative labour developments. WWISE ensures that an organisation is aware of the latest developments and adaptions made to labour laws and assists organisations to identify and mitigate risks associated with non-compliance.
The following services are provided:
- Reviewing current contracts of employment, restraint of trade, employment equity.
- Reviewing of company policies and procedures.
- Conducting evaluation services on compliance with relevant labour law requirements and best Human Resource (HR) practices.
Business Entity Law Compliance Evaluations
WWISE assists organisations to comply with Business Entity Laws by identifying and counteracting legal risks. We provide commercial law services and legal due diligence services that are specific to the organisation and the industry. This is done by providing the following services:
Reviewing an entityʼs relevant documentation and aligning it to the requirements of the Companies Act, Close Corporations Act or the Public Finance Management Act.
Reviewing relevant documentation and aligning it to the requirements of the Close Corporations Act.
Identifying any risks associated with non-adherence to business entity laws
Compliance Consulting
The companyʼs Board of Directors is responsible for compliance management. However, the Board may delegate that responsibility to management in order to ensure that the implementation of compliance is effective. The purpose of compliance consulting is to reduce an organisationʼs exposure to punitive fines and penalties, WWISE provides Compliance Consulting services. Compliance Consulting ensures that an organisation adheres to applicable regulations and provides an independent appraisal of internal processes and systems.
This is done through:
- The implementation of the compliance risk management system.
- Verification of the implementation of King IV.
- Review of Compliance Manuals.
- Review of the Compliance Universe.
- Compliance risk management: identification, assessment, monitoring & reporting risks.
- Training, awareness & compliance culture creation.
Basic Conditions of Employment Act 75 of 1997
Labour Relations Act 66 of 1995
Employment Equity Act 55 of 1998
Compensation for Occupational Injuries and Diseases Act 130 of 1993
Companies Act 71 of 2008
Close Corporations Act 69 of 1984
Public Finance Management Act 10 of 2009.
Protection of Personal Information Act 4 of 2013
Income Tax Act 58 of 1962
Value-Added Tax Act, 89 of 1991
Tax Administration Act, 28 of 2011
National Environmental Management: Protected Areas Act (57 of 2003), known as the NEM:PAA
National Environmental Management: Biodiversity Act (10 of 2004), known as the NEM:BA
National Environmental Management: Air Quality Act (39 of 2004), known as the NEM:AQA
National Environmental Management: Integrated Coastal Management Act (24 of 2008), known as the NEM:ICM
National Environmental Management: Waste Act (59 of 2008), known as the NEM:WA
Occupational Health & Safety Act 85 of 1993
Occupational Health & Safety regulations: Facilities Regulations
Hazardous Chemical Substances
Hazardous Biological Agents
Asbestos Regulations
Lead Regulations
DraIing & Review of Legal Appointments
DraIing & Review of SHEQ related contracts
Interpretation of SHEQ related legislation
