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What is the Prohibited Conduct by the Employer when it comes to an Employee’s Remuneration?

Section 34 describes deductions and other acts concerning remuneration and outlines that –

  1. An employer may not make any deduction from an employee’s remuneration unless- (a) subject to subsection (2), the employee in writing agrees to the deduction in respect of a debt specified in the agreement; or (b) the deduction is required or permitted in terms of a law, collective agreement, court order or arbitration award, the Act further provides that –
  2. A deduction in terms of subsection (1) (a) may be made to reimburse an employer for loss or damage only if – (a) the loss or damage occurred in the course of employment and was due to the fault of the employee; (b) the employer has followed a fair procedure and has given the employee a reasonable opportunity to show why the deductions should not be made; (c) the total amount of the debt does not exceed the actual amount of the loss or damage; and (d) the total deductions from the employee’s remuneration in terms of this subsection do not exceed one-quarter of the employee’s remuneration in money.
  3. A deduction in terms of subsection (1) (a) in respect of any goods purchased by the employee must specify the nature and quantity of the goods.
  4. An employer who deducts an amount from an employee’s remuneration in terms of subsection (1) for payment to another person must pay the amount to the person in accordance with the time period and other requirements specified in the agreement, law, court order or arbitration award.
  5. An employer may not require or permit an employee to- (a) repay any remuneration except for overpayments previously made by the employer resulting from an error in calculating the employee’s remuneration; or (b) acknowledge receipt of an amount greater than the remuneration actually received.

In essence hereof, it is vital that a written agreement make provision for such deductions from an employee’s remuneration, however in some prescribed circumstances this may not be required.

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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The Particulars of Employment and Remuneration

It is stipulated in section 29 of the BCEA that an Employer should provide an Employee with a list of particulars upon commencing the employment relationship. This is not only to inform the Employee of his/ her position, job title and a brief description of his/her duties, but to ensure both parties have all necessary information to carry out their responsibilities, as agreed upon.
As in all contracts, the details of each party should be stipulated, such as the Employer’s name, address and the Employee’s full name, surname, ID number and address should be clearly visible in said contract.
Further information such as: where would the Employee report for duty; the date the Employment contract commenced; days and hours that the Employee is required to work; the Employee’s rate / wage and method of payment; will the employee be eligible for overtime; any other cash payments, payments in kind; how frequent will he/ she receive payment and if any deductions will be applicable, all of these factors would be agreed upon and documented.
Further the Employee would need to know how the company allocates and approves leave; what notice period the Employee should give; or when termination of the Employment relationship would be; does the business belong to/ or have a council /sectorial determination and if there are any additional documentation that forms part of the contract of Employment.
These particulars should be revised and updated on a regular basis. Should any of the above-mentioned change, both parties should receive a copy of these changes and keep on their records. The Employer should ensure that all Employees understand the above mentioned, either through explaining in a language, or manner in which the Employee would understand.
It is the Employers responsibility to keep all record for a period of three years after the termination of the employment relationship.

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Paying My Employees: What Information of Theirs do I Need?

One of the smaller details sometimes overlooked by Employers is Section 33 of the BCEA.
This is sometimes only realised when it is too late, and the department of labour is knocking on your door with an inspection.
Thus, we believe it is a necessity to inform our clients and potential clients on what is required of them as employers.
When Employers make payment towards their employees, they are required to provide the employee with the following in writing,
– The Employer name and Address.
– The Employee occupation and Name.
– The period of which the payment is due.
– The remuneration owing to the employee.
– The deductions made to such amount.
– The Actual amount paid to the employee after all deductions.
Section 33 then sets out additional requirements, if applicable, as followed:
– The employee remuneration rate and overtime rate.- Hours worked on a Sunday and/or Public Holiday.
These documents must be supplied to the employee on their normal working days at an agreed place and on the day, payment is made.
Section 33 of the BCEA is quite specific in what it requires, however many companies have failed to meet the requirements of the labour inspector.
It is advised to consult with a professional to ensure compliance with Section 33 of the BCEA.
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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Paying my Employees: Everything I Need to Know

Section 1 of the Basic Conditions of Employment Act 75 of 1997 defines remuneration as any payment in money or in kind, or both in money and in kind, made or owing to any person in return for that person working for any other person, including the State.
The Act further provides that payment of any remuneration must be paid in South African currency and can be calculated either on a daily, weekly, fortnightly, or monthly basis. The payment thereof must be paid either in cash, by cheque or by direct deposit into an account designated by the employee. Any remuneration paid in cash or by cheque must be given to each employee at the workplace or at a place agreed to by the employee, during the employees’ working hours or within 15 minutes of commencement or conclusion of those hours and in a sealed envelope which becomes the property of the employee.
Remuneration must not be paid later than seven days after the completion of the period for which the remuneration is payable which in terms of the Act must be agreed to contractually; or when the contract of employment is terminated between employer and employee party.
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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Making Payments of Contributions to Benefit Funds on behalf of my Employees?

Section 34(A) of the BCEA: Payment of Contributions to Benefits Funds.
This section of the BCEA covers the deductions of Pension, Provident, Retirement, Medical aid and/or similar funds.
Before diving into payment of benefits, Employers must take note that there is no obligation to pay certain benefits.
The only time an Employer is Obliged to pay for benefits is if stipulated as such in a Collective Agreement or Legislation for the industry the company operates in.
If an Employer is obliged to pay benefits for their Employee, they can deduct the amount owing from the employee and the money deducted must be paid into the Benefit Fund account within seven days.
If an Employer is required to contribute to a Benefit Fund and this contribution is not deducted from the Employees remuneration, the Employer must pay this contribution over within seven days from which the payment was made.
As previously stated, the Benefits that should be paid is highly dependent on the industry in which the Employer operates within.
It is therefore recommended that the Employer seeks advise from a Labour Consultant/Lawyer before making any obligations to a Benefits fund.
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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