What are the Deductions and Other Acts Concerning an Employee’s Remuneration?

Section 34 of the BCEA, Deductions and other acts concerning remuneration.
In the BCEA there are a few specified reasons as to why an Employer can deduct from an Employee’s remuneration.
These reasons fall within a few different categories, namely:
1. Reimbursement for loss.
2. Purchase of Goods by the Employee.
3. Deductions according to Law, Collective Agreement, Court Order or Arbitration Award.
4. Over payment of Remuneration.
Point one refers to financial losses caused by an Employee whereby the Employer is prejudiced.
This will appear as damages to company property and/or assets.
An example of this is, if an Employee operates a company vehicle but was negligent and drove the vehicle into an object that caused damages to the vehicle.
If an Employee causes damages to company property, the company will have to conduct the following procedures before they can deduct from the employee,
– Ensure that the damages were caused throughout the course of the Employee’s employment and confirm that the Employee was at fault.

– The total amount which the Employer will deduct does not exceed the actual amount of damages caused by the Employee.
– And that the deductions made are not more than a quarter of the employee’s total remuneration for the time period.
Point two refers to payment of goods by the Employee.
This will come into effect if Employees have an account to buy goods from thecompany.
When deducting for payment of goods, the Employer must ensure that the goodspurchased by the employee are specified in quantity and nature.
Point three refers to deductions according to Law, Collective Agreement, CourtOrder or Arbitration Award.
These types of deductions refer to PAYE, Union subscriptions and benefits asspecified in Collective agreements, namely Provident fund, Leave Pay fund and soforth.
Furthermore, Employers are permitted to deduct from the employee’s remuneration ifordered to do so by a Court and/or CCMA/Bargaining Council.
These deductions may not exceed 25% of the employee’s remuneration.
Point four refers to over payments of remuneration.
Over payments towards Employees sometimes occur and the good news forEmployers is that they can legally claim the amount back from the Employee.
However, this may only occur if there was a calculation error in calculating theemployee’s remuneration and/or if the employee acknowledged receipt of an amountgreater than what they received.
Employers are still advised to contact a Labour Consultant/Lawyer before making anydeduction from an Employee’s remuneration as each Bargaining Council’s CollectiveAgreement differs as to what is permitted and/or not permitted.
This article aims to provide general information and does not constitute legal advice.For more information contact 021 919 6418 OR erin@joblaw.co.za

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