Employers: What do the new remuneration thresholds mean to you?

On 1 July  the Minister of Labour amended the remuneration an employee earns to fall under the provisions of the Basic Conditions of Employment Act (BCEA) to R193,805 per annum (R16,150-41per month) – this is up from R183,008. The amount is the gross amount before deductions like PAYE, pension and medical aid. The threshold is significant as employees falling below it are afforded various protections of the BCEA.  What are the protections? In essence the significant ones are:

       
  • The number of hours your employee works a week (45 hours)
       
  •  How much overtime they are allowed to work (10 hours a week)
       
  •  How much they get for overtime – at least one and a half times their normal wage
       
  • Limitations provided for a compressed week (up to twelve hours per day including meal times) and averaging of a work week (allowable for a period up to four months)
       
  • The rate for work on Sundays ( double time)
       
  •  If they work on a public holiday, they are paid a full day’s earnings plus whatever hours they work on the holiday .
       
  • Employees working night shift are entitled to an additional allowance (to be negotiated or their weekly working hour limit of 45 hours to be reduced), plus the employer is to pay for transport to and from work.
       
  • If your employee works consecutively for 5 hours, the employee is entitled to a one hour lunch break.

If your employee earns more than R193,805, none of these conditions automatically apply and are to be negotiated between the employer and employee. It is thus worth checking if any of your employees are now covered by these BCEA protections. The BCEA does not apply if your employee is part of management, is part of your sales team and travels to customers, or works less than 24 hours per month. If you are in doubt contact us for specific advice. © DotNews, 2005-2013. This article is a general information sheet and should not be used or relied on as professional advice. No liability can be accepted for any errors or omissions nor for any loss or damage arising from reliance upon any information herein.  Always contact your financial adviser for specific and detailed advice.

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