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

Model Contract of Employment

EXAMPLE

NAME OF THE COMPANY: . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 

(called ‘the Company’)

NAME OF THE EMPLOYERR & IDENTITY NUMBER. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 

(called ‘the Employee’)

It is hereby agreed that the Company will employ the Employee as a ………………………………….. 

Job grade……………………………….. in its Department

at a rate of R………………………………….. per day.

  1. DATE OF ENGAGEMENT

The date of commencement of employment is: . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

  1. PROBATION

During the first three months of employment, the employee will serve a probation period. Their performance and suitability for the position will be assessed during this time. If, during the first month of probation, the Employee’s performance is regarded as being unacceptable despite attempts to counsel the employee, then the employee’s contract may be terminated as per section three (3) below.

  1. TERMINATION OF EMPLOYMENT

The company and the employee may terminate this agreement on the following basis:-

  1. by giving one week’s notice in writing during the first six (6) month period of employment;
  2. by giving two weeks’ notice in writing where the employee has been employed for more than six (6) months but not more than one (1) year, and four weeks notice where employment has been longer than 12 months;
  3. either the company or the employee may summarily terminate this agreement without providing due notice, on any grounds considered appropriate under the law;
  4. by both agreeing to terminate;
  5. where an employee is absent for four working days in a row and has not notified the company or given any indication that they intend to return, then the contract can be terminated immediately on grounds of desertion.

4. DUTIES

The employee must perform their duties as described in the job description as well as any tasks which they may reasonably be asked to do.

  1. WAGES

The company shall pay the employee the rate indicated in this contract.

Payment shall be made every week in arrears. The company and the employee accept that the wage rate will only be reviewed once a year during OCTOBER and that this review will be based on the performance of both the company and the employee during the previous 12 month period.

  1. WORKING HOURS AND FLEXIBILITY
    1. The employee shall be required to work up to nine (9) hours per day (excluding meal breaks) and shall remain at work between the hours specified by management on any day. Normal working hours shall be from 07h00 until 17h00, Monday to Friday. It is accepted that start and finish times may be altered in line with operational requirements and as determined by the manager from time to time.
    2. A fifteen (15) minute tea interval shall be granted not later than 10h00 (morning) and 15h00 (afternoon) daily and shall be taken as determined by management in keeping with the operational requirements of the department.

A lunch break of one (1) hour shall be taken between 12h00 and 13h00 daily.

Meal intervals are not regarded as paid working hours.

The employee accepts that overtime and shift work, including weekend work, are an essential part of employment; the employee agrees to work overtime as may be reasonably required by the company. Where overtime is worked, the employee shall be paid at time and a half of the normal hourly wage.

3. Payment for overtime shall only be made where the employee works more than 45 hours in any pay week.

  1. LEAVE PAYMENT

The employee shall be entitled to 15 working days leave after 12 months continuous employment calculated at 1,25 days for each completed month of service. An employee absent during the year without permission will have their leave calculated on the basis of pro rata leave for the period worked.

It is accepted that annual leave will be scheduled by the employer to meet its manning requirements and will normally be taken during the low season.

  1. MEDICAL LEAVE
    1. Where the employee is unable to work on the grounds of genuine medical incapacity which has not been caused by the employee’s negligence or misconduct, then he/she is entitled to paid sick leave.
    2. During the first 6 months of employment, the employee is entitled to one day sick leave for every completed 26 days of service. After the first six months of employment the employee is entitled to 30 days sick leave in any 36-month cycle.
    3. The employee must hand in a medical certificate for any period of absence that is longer than 2 days. On the days when the employee is absent, they must notify the immediate supervisor by 09H00 regarding the reason for absence and how long the employee believes they will be absent.
    4. The employee accepts that the company is dependent on the employee regularly attending work and if they are constantly absent because of illness then this will make the employee unsuitable for employment in the department and could result in the termination of their services on the grounds of incapacity.
    5. The employee accepts that if necessary they will go for a medical test by a doctor appointed and paid for by the company. The results of the examination will be disclosed confidentiality to the company’s medical officer.
    6. The employee undertakes to bring to management’s attention any disease, ailment or disability which they become aware of which could in any way impact on the health and safety of fellow employees, the provisions of the Health and Safety Act or their ability to properly perform the job.
  2. PARENTAL LEAVE

The employee shall be entitled to 10 consecutive days unpaid parental leave when their child is born, commencing on the day the child is born if they are not the primary carer. The employee shall give one month’s notice of the date on which leave will be taken.   

  1. FAMILY RESPONSIBILITY LEAVE

The employee who is employed on a contract longer than four months, for four days a week or more, shall be entitled to three days paid leave during every 12 months of service which may be used:

  1. When the employee’s child is sick;
  2. When one of the following persons die: spouse or life partner, parents, adoptive parents, grandparents, children, adopted children, grandchildren or siblings.

It is the responsibility of the employee to bring proof of the reason for leave. If no proof is given, then the leave taken will be unpaid and will be regarded as unauthorised leave which may result in disciplinary action.

  1. UIF

The company and the employee will both contribute according to the provisions of the Act once the employee has provided a valid ID document to the employer.

  1. COMPANY RULES AND REGULATIONS

The employee undertakes to read and follow the following policies and procedures as amended from time to time.

  1. Company Disciplinary Code of Behaviour and the Disciplinary Procedure;
  2. Company Grievance and Dispute Procedure;
  3. Company regulations regarding Leave and Absence Procedures;
  4. Company rules relating to Protective Clothing;
  5. The Health and Safety regulations of the company.
  1. DEDUCTIONS

The employee accepts that any outstanding loans owing to the company or taken from the company will be deducted from the employee’s earnings or any leave entitlement or bonus accruing to the employee.

The employee also agrees that the company may make deductions of up to 25% (one quarter) of the employee’s wages in terms of section 34 of the Basic Conditions of Employment Act to repay the company for the loss or damage caused by the employee’s actions, provided this has been established during a disciplinary hearing.

  1. ACKNOWLEDGEMENT

The employee acknowledges their appointment and that they fully understand the terms of such contract which have been explained to them and fully translated.

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

EMPLOYEE SIGNATURE                                                                                     SIGNED ON (DATE)

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 


COMPANY REPRESENTATIVE                                                                          SIGNED ON (DATE)

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 

WITNESS/TRANSLATOR                                                                                  SIGNED ON (DATE)

(where appropriate)

ANNEXURE A: JOB DESCRIPTION

1. Name ……………………………………………………………………………….. 

Physical Address  ……………………………………………………………………….. 

2. Company ……………………………………………….. 

3. Position…………………………………………………. 

  1. Key performance areas (the key elements of the employee’s job that he or she will be measured against)

……………………………………………………………………………………. 

5. Commencement date ………………………………………. 

6. Total cost to the Company…………………………………… 

COMPLIANCE WITH SECTION 29 OF THE BCEA
WRITTEN PARTICULARS OF EMPLOYMENTYES / NO
Full name and address of employerYes
Name and occupation of employeeYes
Brief description of the workYes
Place of workYes
Date on which employment beganYes
Ordinary hours of work and days of workYes
Employee’s salaryYes
The rate of pay for overtime workAs provided in BCEA
Other cash paymentsN/A
Any payment in kindYes
Frequency of remunerationYes
Deductions to be madeYes
Leave to which employee is entitledYes
Period of notice required to terminateYes
Description of any council or sectoral determinationN/A
Any period of employment with a previous employerN/A
Any other documents that form part of the contractYes
Where such documents are reasonably accessibleYes