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Why I have to Inform My Employees of their Rights

Legislation has set out certain rights that an Employee automatically qualifies for when he/she is employed. These rights are stipulated in the Basic Conditions of Employment Act 75 of 1997, Labour Relations Act 66 of 1995, Employment Equity and Regulations act 55 of 1998, to mention a few.
It is important that the Employer display these rights in the workplace, for all employees to read, to ensure that these are clearly visible and in the official languages which are spoken in the workplace.
Many Employees are not aware of their automatic rights and in this way, the Employer ensures they have access to and knowledge off their rights.
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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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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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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