Chapter 6
Related Sections
1
INTRODUCTION
2
THE CONTRACT OF EMPLOYMENT
3
How can a contract of employment be used?
4
Changing the contract of employment
5
Types of contracts: Indefinite and Fixed-term contracts
6
Casual employees
7
‘Zero-rated’ contracts
8
Volunteers
9
Differential wage
10
Bonus pay
11
Long service awards
12
Job references
13
LAWS ABOUT TERMS AND CONDITIONS OF EMPLOYMENT
14
Wage regulating measures
15
How do you know which law applies to an employee?
16
BASIC CONDITIONS OF EMPLOYMENT ACT (BCEA)
17
Who is covered by the Basic Conditions of Employment Act?
18
Temporary Employment Services (TES)
19
Variation of basic conditions
20
Individual contract of employment
21
Collective bargaining
22
Sectoral Determinations
23
Ministerial exemptions
24
Prohibited employment
25
Enforcement of the Basic Conditions of Employment Act (BCEA)
26
Summary of provisions in the Basic Conditions of Employment Act (BCEA)
27
MINIMUM WAGES
28
Summary of provisions in the National Minimum Wage Act (NMWA)
29
COLLECTIVE AGREEMENTS
30
Workplace-based collective agreements
31
Bargaining Council Agreements
32
SECTORAL DETERMINATIONS
33
How are Sectoral Determinations made?
34
Enforcement of a Sectoral Determination
35
Settling disputes under a Sectoral Determination
36
Summary of the Sectoral Determination for Farm Workers
37
Summary of the Sectoral Determination for Domestic Workers
38
DEREGULATION
39
OTHER LAWS THAT APPLY TO TERMS AND CONDITIONS IN THE WORKPLACE
40
Employment Equity Act (EEA)
41
The Occupational Health and Safety Act (OHSA)
42
Code of Good Practice on the Prevention and Elimination of Harassment in the Workplace
43
The Merchant Shipping Act
44
DISPUTES AND WAYS OF SETTLING DISPUTES
45
What is a dispute?
46
The Labour Relations Act (LRA)
47
Who is an employee?
48
Unfair Labour Practices
49
DISMISSALS
50
What is a dismissal?
51
Automatically unfair dismissals
52
When is a dismissal fair or unfair?
53
Dismissal for misconduct
54
Dismissal for incapacity
55
Retrenchment or redundancy dismissal
56
What steps can be taken if there is an unfair dismissal?
57
SOLVING DISPUTES UNDER THE LRA
58
Conciliation by the CCMA or Bargaining Council
59
Arbitration by the CCMA or Bargaining Council
60
Adjudication by the Labour Court
61
TAKING INDUSTRIAL ACTION
62
When is industrial action not permitted?
63
What procedures must be followed before industrial action is protected?
64
If an employer unilaterally changes conditions of employment
65
Employee’s and employer’s rights in protected industrial action
66
Trade unions
67
SOCIAL SERVICES AND BENEFITS IN THE WORKPLACE
68
Unemployment Insurance Fund
69
COMPENSATION FUND
70
When can an employee claim compensation?
71
Who can claim compensation from the Fund?
72
Who contributes to the Fund?
73
When will the Fund not pay compensation?
74
Occupational diseases and injuries
75
What types of compensation payment are made?
76
Steps to claim disability
77
How is the compensation money paid?
78
Objections and appeals
79
EMPLOYEE’S TAX
80
What is employee’s tax?
81
When must an employee pay tax?
82
How much tax do you pay?
83
What information must you give to employers?
84
Rebates
85
Tax on bonus pay and retrenchment pay
86
Part-time work and casual work
87
Tax assessments
88
PENSION AND PROVIDENT FUNDS
89
How does a pension or provident fund work?
90
Types of funds and benefits
91
Bargaining Council funds
92
Complaints about payments from pension funds
93
The Pension Funds Adjudicator
94
The Two-Pot Retirement System
95
MEDICAL AID SCHEMES FOR EMPLOYEES
96
Advantages and disadvantages of Medical Aid Schemes
97
Medical Schemes Act
98
SKILLS DEVELOPMENT ACT
99
The National Qualifications Framework (NQF)
100
The Skills Development Levy-Grant Scheme
101
Skills Development Facilitators
102
PROBLEMS
103
Problem 1: Money is deducted from an employee’s wages
104
Problem 2: Employee wants to claim notice pay and leave pay
105
Problem 3: Employee is paid below the minimum wage
106
Problem 4: Dismissed employee wants the job back – how to apply for reinstatement or compensation
107
Problem 5: Retrenchment
108
Problem 6: Employee dismissed for being under the influence of alcohol on duty (no previous record of alcohol abuse)
109
Problem 7: Employee dismissed for being under the influence of alcohol while on duty (Employee is suffering from alcoholism)
110
Problem 8: Contract employees are dismissed before the contract is due to terminate
111
Problem 9: Contract employees are not paid overtime
112
Problem 10: Part-time employee is not paid sick leave
113
Problem 11: Fixed-term contract has not been renewed
114
Problem 12: Application for UIF benefits is too late
115
Problem 13: Employer does not register employee with the Unemployment Insurance Fund
116
Problem 14: Failing to sign the Unemployment Register
117
Problem 15: Long delay in paying Compensation
118
Problem 16: Employee does not get the correct amount of compensation money
119
Problem 17: Injured employee is off work and is not getting paid
120
Problem 18: Employee is injured on duty and loses the job
121
Problem 19: Employee’s compensation has been refused
122
Problem 20: Employees develop an occupational disease
123
MODEL LETTERS AND FORMS
124
Model Contract of Employment
125
Letter of demand to employer for reinstatement
126
Letter of demand to employer for notice and leave pay
127
Letter to Department of Employment and Labour about a notice and leave pay claim
128
Letter of appeal against the refusal to pay UIF
129
Letter to UIF because benefits have not been paid
130
Letter to Compensation Commissioner asking whether the accident was reported
131
Letter to Compensation Commissioner asking for reasons for the delay in paying
132
How to write a complaint to the Pension Funds Adjudicator
133
LRA Form 7.11 Referring a dispute to the CCMA for resolution
134
Compensation Form WCL3
135
CHECKLISTS
136
Checklist for a labour problem
137
Checklist to prepare for arbitration
138
Checklist to prepare a claim for reinstatement
139
Checklist for problems about UIF
140
Checklist for compensation problems

Problem 15: Long delay in paying Compensation

Zama worked for a delivery firm. On 25 March on his way to drop off an order, he was involved in a motor vehicle accident. He suffered severe injuries in the accident. When he went back to work after being in hospital for 6 weeks his employer told him that there was no longer any work for him. It is now a year after the accident happened. Zama still has not received any compensation. His employer has not paid him anything since the date of the accident.

WHAT DOES THE LAW SAY?

Zama’s accident happened during the ‘course and scope of his duties’ so he is covered by the Compensation Fund. (See Who can claim compensation from the Fund?)

The employer must report the accident to the Compensation Fund on FORM W.C.L. 2 as soon as it happens. The doctor must fill in FORM W.C.L. 4 after the first visit by the injured employee. (See Steps to claim disability)

An employer has to pay compensation (that the employee would normally receive from the commissioner) to the injured employee for the first 3 months from the date of the occupational injury. The Compensation Fund will repay the employer for the money that was paid.

The employer also owes Zama’s wages, notice pay and any outstanding leave pay. The employer should also have followed certain procedures to dismiss him, and have had a good reason to dismiss him. (See Notice; See Dismissals)

WHAT CAN YOU DO?

  • Zama can claim the first 3 months salary from his employer after suffering from the injury (the commissioner will repay this to the employer).
  • If you are concerned that your employer did not report the case to the Compensation Fund Commissioner you can email a letter to them providing details of the name of the employee, the name of the employer, and the date of the accident. You can send the email to cfoutbound@labour.gov.za. (See Model letter to Compensation Commissioner asking whether the accident was reported).
  • Always include the claim number in any correspondence if you have it. Also include a completed FORM W.C.L.3 which will save the employee time if the accident has not been reported. (See Compensation Form WCL3)
  • If the employer did not report the accident, the Compensation Commissioner will send a W.C.L.3 form to you. The employee must complete this. The Compensation Commissioner will take action against the employer for not reporting the accident.
  • If the accident was reported, send a letter to the Compensation Commissioner asking them why there has been such a long delay in paying out the compensation. Check that the commissioner has all the correct addresses. (See Model letter to the Compensation Commissioner asking for reasons for the delay in paying) The Compensation Commissioner must tell you exactly what is causing the delay. They may ask you to send them a missing form or give them the correct address of the employee.
  • You can try to get Zama’s wages, notice pay and any outstanding leave pay from the employer. If this is not successful, you can lodge a complaint with the Department of Employment and Labour. (See Problem 2: Employee wants to claim notice pay and leave pay)
  • Zama may have been unfairly dismissed and he should therefore take action against his employer. However, he has missed the deadline for lodging a dispute with the CCMA so he will have to apply for condonation to make a late application. (See Problem 4: Dismissed employee wants the job back – how to apply for reinstatement or compensation; See Solving disputes under the LRA; See Problem 18: Employee is injured on duty and loses the job)