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

Who is covered by the Basic Conditions of Employment Act?

All employees are covered by the Basic Conditions of Employment Act (No. 75 of 1997) except the following:

  • Members of the National Defence Force, the National Intelligence Agency, and the South African Secret Service
  • Unpaid voluntary employees who do work for a charitable organisation
  • Employees who work for an employer for less than 24 hours a month
  • Employees on vessels at sea where the Merchant Shipping Act (1951) is applicable

Certain special provisions apply to companies employing fewer than ten employees.

PEOPLE EARNING ABOVE A CERTAIN AMOUNT

If a person is earning a gross salary of more than R269 600.90 per year (or R22 466.74 per month) (referred to as the BCEA earnings threshold which increases at various intervals) then the following sections of the BCEA will not apply to them:

  • Section 9: Limitations on ordinary hours of work
  • Section 10: Overtime work and payment
  • Section 11: Compressed working week
  • Section 12: Averaging of hours of work
  • Section 14: Provision of meal intervals
  • Section 15: Daily and weekly rest period
  • Section 16: Pay for work on Sundays
  • Section 17: Night work
  • Section 18(3): Public holidays (where an employee may work on a public holiday on which they would not have ordinarily worked) (See Summary of provisions in the BCEA).

PART-TIME, CASUAL AND TEMPORARY EMPLOYEES

A part-time employee is permanently employed but only works part of a working day or working week. A casual employee is employed on a short-term basis, but only works part of a working week. If they work less than 24 hours in a month the BCEA does not apply to them. An employee who works more than 24 hours during any month is now fully covered by the provisions of the BCEA including provisions for leave and sick pay, overtime and public holiday and Sunday rates.

A temporary employee is not permanently employed but only works for a specific length of time or until a specific job is completed. This is often referred to as a ‘fixed-term contract’ of employment.

An employer may try to circumvent a permanent contract of employment by taking on an employee in a ‘fixed-term’ capacity, but if the employee meets the definition of what an employee is, the CCMA will offer protection against unfair dismissal should this be required. An employer may try to avoid giving an employee a permanent contract of employment by continuously renewing their fixed-term contract but if an employee works for more than 3 months and earns below the earnings threshold in the BCEA of R21 198 per month, then the contract is seen to become permanent unless there is a justifiable reason to continue with the fixed-term contract. (See Fixed-term contracts; See Who is an employee?)

In most cases, part-time, casual and temporary employees will be entitled to the same benefits as other employees, but on a pro-rata basis. They are excluded from some provisions of the BCEA, for example, they are not entitled to Family Responsibility Leave unless they work on the contract for more than four months, and at least four days a week.

Generally, the temporary or casual employee will be entitled to one day annual leave for every 17 days worked and one day sick leave for every 26 days worked for the same employer.

PIECE WORK

Piece work means that an employee is not paid according to the hours that they work. The employee is paid for the number of items produced. For example, seasonal farm employees may be paid for the amount of fruit they pick provided they earn at least the minimum hourly or daily wage laid down for that industry or sector.

FREELANCE OR OUTSOURCING

An employer may pay someone who is not an employee in the company, to do work. This person is not an employee but is running their own small business and is often referred to as an independent contractor. The contractor is generally paid for producing an agreed level of work or providing a service and is not supervised or controlled by the employer. The independent contractor is not covered by the BCEA.

EXAMPLE

Sakumsi cuts patterns for dresses. He pays Trevor to sew the pieces together. Trevor works from his house. Trevor is not employed by Sakumsi, and Sakumsi does not have to make sure that Trevor’s pay and working conditions are according to the BCEA.