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 3: Employee is paid below the minimum wage

Thabiso is employed by Fix-it Tiles. The company makes plastic floor tiles. She thinks that they pay her less than the minimum wage which the law says she should be paid. She wants to know if this is correct.

WHAT DOES THE LAW SAY?

Collective agreements, Bargaining Council Agreements, Sectoral Determinations and Wage Determinations may set out minimum wages. The National Minimum Wage Act lays down a national minimum wage. If the company is only covered by the BCEA, then it must pay the current national minimum wage. Thabiso has the right to claim the wages that she was promised when she started working for the company. If this is lower than the national minimum wage then she can claim for the minimum wage amount.

WHAT CAN YOU DO?

  • Check which wage regulating measure protects the company that Thabiso works for, for example, a Bargaining Council Agreement or Wage Determination, BCEA. (See How do you know which law applies to an employee?)
  • Once you have established this, check whether there is a minimum wage for the industry. If so, find out what the minimum wage should be for Thabiso. If she is being underpaid according to a BCA or Wage Determination or in terms of the National Minimum Wage Act, you can either refer the case to the CCMA OR to the Department of Employment and Labour (or Bargaining Council if it applies). You cannot refer the case to both the CCMA and the Department. These are the different procedures you can follow:
    • First you need to contact the employer and ask for details on why Thabiso is being underpaid, as the law says that a minimum wage must be paid to her. If the employer carries on paying below the minimum wage and refuses to take any notice of your request, you can decide whether to go to the CCMA or the Department of Employment and Labour (or Bargaining Council).
    • Using the CCMA: The quickest way to deal with the problem of someone not being paid according to the NMWA, is to refer the dispute directly to the CCMA in terms of Section 73A of the BCEA. This process involves sending the CCMA Referral of Dispute Form 7:11 to the employer and then sending it to the CCMA and ticking Section 73A under ‘Nature of Dispute.’
      • Section 73A of the BCEA says that an employee can refer a dispute to the CCMA if the employer fails to pay any amount owing to an employee in terms of the BCEA or the NMWA, or in terms of a contract of employment, a Sectoral Determination or a collective agreement. An employee can make an application to the CCMA for conciliation and if the dispute cannot be resolved, it will then automatically be referred to arbitration. No legal representation is allowed in these disputes.
      • This provision only applies to employees who earn below the BCEA earning threshold of R21 198 per month. Employees who earn above the threshold can make a claim against an employer for failing to pay them what is owed in either the Labour Court, High Court, Magistrates Court or Small Claims Court depending on the jurisdictional requirements for each of these courts.
    • Using the Department of Employment and Labour (or Bargaining Council): You can refer the problem in writing to the Bargaining Council (if it is a Bargaining Council Agreement) or to the Department of Employment and Labour in terms of the National Minimum Wage Act). The complaint must say exactly what the claim is and what steps have already been taken to sort out the problem.
      • Each Bargaining Council as well as the Department of Employment and Labour has its procedures for investigating complaints and enforcing rights. To report a complaint, go to the nearest Department of Employment and Labour and report the complaint. You will need to complete the relevant Labour Complaint Form. The Department of Employment and Labour will appoint an inspector to investigate the complaint. If the inspector finds the employer has not paid the minimum wage, they can get a written undertaking from the employer to pay the minimum wage or they can order the employer to pay the employee by giving them a compliance order. Both the compliance order and the written undertaking can be made into an arbitration award by the CCMA. If the award is not complied with, the employee can apply to the CCMA to certify the award and it can be enforced as if it were an order of the Labour Court.
      • You can also use the Department of Employment and Labour Impimpa hotline to report the complaint. Using this hotline doesn’t need data, airtime or a smartphone. The number to dial when reporting a complaint is 134305# and select the relevant job category. Then follow the prompts. (See Summary of the provisions in the BCEA [if she falls under the BCEA]; See Enforcement of the BCEA; See Enforcement of a workplace-based collective agreement; See Enforcement of a Sectoral Determination; See Enforcement and dealing with disputes about minimum wages)