FASA’s help-line received an interesting inquiry on paying royalties for playing music in public places as there seem to be two different collecting societies claiming

Question

Both SAMRO and SAMPRA appear to be invoicing franchised outlets that play music in their outlets.

– SAMRO is a copyright administration business dealing with primarily the administration of music composers’ and authors’ Performing Rights.

– SAMPRA is a collective licensing society of copyright owners of music sound recordings.
How would a franchise owner verify the collecting society’s legitimacy and should the business pay both these organizations?

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A franchisor asked FASA’s Help Line to explain the CPA’s stipulation that the marketing fund must be a separate account and how that can be practically interpreted.

Question from a franchisor:

From a practical perspective our marketing contributions are in a separate accounting account/cost centre, but not in a separate bank account. The reasons are purely practical and an effort to save banking fees and also to make the life of franchisees easier in paying everything into one bank account, although they are invoiced separately.

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Compliance with legislation can be intimidating, especially for business owners without a legal background. Labour law is not negotiable and poses a business risk to the employer. To comply with legislation is not a luxury, it is a must and can be overwhelming in terms of specialist knowledge, as well as time-consuming. Employers should, however, realise that legislation can also be used to protect your business and minimize risk by proactively positioning the business with regards to possible future disputes.

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The three new Acts signed into law by Cyril Ramaphosa will affect how we drive, will act on fraudulent qualifications and give debt relief to lower-end earners. Whilst some of these laws have been in the pipeline for some time, there has been mixed reaction to these new pieces of legislation.

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A recent exposé on an investigative television programme put the spotlight on the compliance of franchise companies with the Consumer Protection Act’s Regulations and with the Code of Ethics as set down by the Franchise Association of South Africa (FASA). FASA, as a voluntary organisation representing the industry, regularly fields complaints from franchisees with some of the more common complaints related to non-member franchisors being:-

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Make sure you know how to appoint the right people for your organisation, manage your employees effectively in a fair and productive workplace and be prepared for ending employment in a way that benefits all.  As a member of Business Unity South Africa (FASA) FASA is proud share the BUSA/CCMA labour advice web tool with small business owners.

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The core value and most important asset in your business is your Intellectual Property (IP). As we have seen recently in high profile cases involving Ubuntu Baba and Vodacom Call-me, protecting your intellectual property is at the heart of your business.

It weaves through everything in your business: the way you appear to your customer, the way the customer experiences your product, the way the customer feels about you – and how you communicate your business to customers in a consistent and recognisable way. It is the vehicle which identifies and promotes your brand.

Your IP consists of your logo, designs, colours, trade secrets, etc; it represents the way you uniquely niche your product or service in the market in a communicative style that is registered solely as yours, and which cannot be used by any other person or business. Intellectual Property is the way you have imagined your business and expressed this materially in design and labelling. Once legally registered it cannot be copied – and this gives you your key advantage over competitors.

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Good news for the 6-million workers that currently earn below R3 700 a month but a challenge to the businesses out there struggling to retain staff in an economic environment of rising costs, the new Minimum Wage Act signed by President Cyril Ramaphosa last week will see the minimum hourly rate for workers set at R20 – effective on 1 January 2019.

The new law allows for the annual adjustment of the minimum wage by a still-to-be-appointed commission, which will be required to conduct a review of the said wage within 18 months of the commencement of the act. It has also been factored in that those employers who are unable to pay the minimum wage due to business constraints may apply for an exemption.

Economists, whilst welcoming the move are concerned that the law may lead to more job cuts as businesses find they are not able to meet the increased labour costs which will only add to the already high unemployment rate of more than twenty seven percent (27%). Treasury, in its initial response to the proposed law, which was first proposed by Nedlac and in the works since 2015, warned that if the move was implemented recklessly, could not only affect jobs but the economy in the long term

Three other bills were also signed into law: the Labour Laws Amendment Bill, amendments to the Basic Conditions of Employment Act, and the Labour Relations Amendment Bill.