How can employees get paid during South Africa’s Covid-19 lockdown? By continuing to use this site you consent to the use of cookies on your device as described in our cookie policy unless you have disabled them. Cite this page © WageIndicator 2021 - Mywage.co.za -, Reducing an employee’s salary is not an easy decision to make. Before the Covid-19 pandemic, South Africa’s economy and workforce were characterised by high levels of unemployment and income inequality. Will their businesses go bankrupt and what happens to employees, if they cannot afford to keep them on or pay them? An employer can change terms and conditions of employment through consultation and negotiation. By law, employers cannot unilaterally cut an employee's pay. December 1st, 2020. Before you go and reduce an employee’s salary, you should know your minimum obligations under Awards and Enterprise Agreements. Pay Deductions and work agreement, Payroll Deductions and contract, pay deductions and wages. The government has announced that employees may be entitled to claim existing UIF benefits due to reduced working time, in light of the Covid-19 pandemic. UI19 and UI2.7 (completed by employer – choose option 17 on the UI19 document); UI19 and UI53 (completed by the employer); ID document of the deceased and the applicant. Alternatives include, but are not limited to, short-time implementation and/or temporary dismissal. The point to remember is that there must be consultation with employees and not a unilateral implementation of a change to terms and conditions imposed by the employer. R 6 730.56). Please note that this benefit is only available if your remuneration from your employer is R600 000 or less for the tax year. Dear Sir / Madam, Your employer may not unilaterally change your conditions of employment, eg your salary. Some companies have implementation “short-time”, for example a 4-day work week – which means a salary cut of around 20%. Employment at will means that when workers don't have a formal employment contract or are covered by a bargaining agreement they can be terminated, demoted, and have hours reduced or pay lowered at the company's discretion. This can happen where the employee’s salary was originally negotiated on the basis of an expected level of performance which, if not met, meant the salary would reduce. The issue is further clarified in Section 35(1) of the BCEA, which states: “an employee’s wage is calculated by reference to the number of hours the employer … UIF contributions), court order or arbitration award. Check your Pay, Salary, Income with the Salary Check tool. If a salary is reduced without consultation or employee agreement, an employee now has three legal opportunities to seek redress from his or her employer.
Establishment meetings for the LSSA provincial attorneys’ association, CV portal for candidate legal practitioners, Southern African Development Community Law Society, reduced working time and/or forced shutdown; and, copy of employee’s identity document (ID); and. Does a customary law marriage nullify further marriages entered into with a different spouse? Employers may not deduct money from a worker’s pay unless: The worker agrees in writing to the deduction of a debt. The legal profession’s focus on the future, An overview of the Protection of Personal Information Act. How does the Law Society of South Africa fulfil its functions? Look for ways to help your employer cut back without cutting jobs or pay. To reduce your hours. What You Can Do: Be proactive. COVID 19 TERS Programme – Employer guidance On 26 March 2020, South Africa went into lockdown. Gleeson advised that if an employer was to reduce an employee’s salary, for example below the national adult minimum wage (currently $656.90 per week), this would be a breach of the National Minimum Wage Order. Paying less than the approved amount would likely violate the prevailing wage requirements for those visa categories. In answer to the above question, yes, you can ask your employee to take a pay-cut, but no, they do not have to agree. You’re not allowed to pay an employee less than what’s required under the applicable Award or Enterprise Agreement, and there are significant consequences for getting it wrong including civil penalties and back payments.If an employee i… It is, therefore, our view that employers could – during this unprecedented time – engage with employees, where written employment contracts are in place, to vary terms and conditions of employment to have employees take their annual leave during the lockdown period. For a detailed breakdown of how this is affecting the rental market, head here. Benefits are paid to the beneficiaries of the deceased.
, https://mywage.co.za/decent-work/work-and-wages/pay-deductions, https://mywage.co.za/@@site-logo/wageindicator.png, More infomation about Global Wage Comparisons, VIP / Celebrities PAY (in alphabetical order), Wages in Context in South Africa and the world, Living and Working during the Coronavirus Pandemic, Survey on Living and Working in Times of the Coronavirus, Coronavirus Work & Life in Maps and Graphs - updated daily, Daily updated Maps on Living and Working during Coronavirus, Daily updated Graphs on Living and Working during Coronavirus, Contribute to the data collection concerning platform workers, Share your Story about Working for a Platform. It is tempting to ask everyone to take a 10% pay cut to try and keep the business afloat. Negligent loss of a firearm: A dilemma for the state? Employers must complete the UI19 form stating the last date of termination and the reason thereof. An employer can change terms and conditions of employment through consultation and negotiation. Workers also cannot be required to work additional hours without fair compensation. Cut staff hours. This can be done by restructuring your salary so that a portion of your salary is paid to you as exempt income i.e. This provision will only apply if that employee was not present in South Africa for a period exceeding 90 days during the tax year immediately preceding the date of arrival in South Africa. You can google section 189 of the Labour Relations act for the requirements and also find information on the department of labour’s website. Employers can only tell you to reduce your hours if it's already outlined in your contract saying that they can. a letter from the employer confirming company shutdown is due to COVID-19. South African workers will still be entitled to payment, should their employer ask them to remain at home during this crisis. Reply to Nchaka: If the contract makes allwance for 40 hours (i.e. 2. Worker Rights Regarding Payment of Wages in South Africa. Gleeson warned that employers should bear in mind that salary payments are contractual entitlements of employees, and are protected by contract law and potentially also by awards, enterprise agreements and the National Employment Standards. Mywage.co.za is connected to the WageIndicator Network. You can take the matter up internally by filing a grievance and discussing the matter with senior management, or you can contact an attorney who will pursue a civil case against your employer. Bear in mind, should the employee fall ill during the annual leave period, sick leave is applicable. While the arbitrator accepted this as a valid reason the demotion was still unfair because the employer had failed to consult with the employee before making the offer. Unpaid leave or temporary layoffs Read more about Employers not paying full salary must present balance sheet in court: Govt on Business Standard. Is it possible for the employer to change your contract in your probation stadium from only a salary to a salary and Commission? Accurate, reliable salary and compensation comparisons for South Africa But lowering wages has its risks, including breach of contract claims, unfair dismissal claims, and potential breaches of minimum entitlements. Labour law in South Africa, and more specifically the Basic Conditions of Employment Act, stipulates what “wage” means. Employers may not deduct money from a worker’s pay unless: The worker agrees in writing to the deduction of a debt. Are tenants being robbed of their rental deposits? If the aforementioned conditions are not satisfied the accommodation provided to an employee by their employer is fully taxable in South Africa. The law The law stipulates that employers … The total deduction is not more than 25% of the worker’s net pay. Fortunately, most jurisdictions, including South Africa, have well established legal principles (including the common law and legislation) which can guide employers and employees in dealing with the virus and the impact it has / will have in the … By Roy Bregman, Sharusha Moodley and Jaco Lessing. When can a deduction be made from my salary? As part of the regulations enacted by President Ramaphosa in terms of the Disaster Management Act, all non-essential businesses were required to cease trading. Employers must pay the employee’s deductions to benefit funds (pension, provident, retirement, medical aid, etc.). Employers may not deduct money from a worker’s pay unless: The worker agrees in writing to the deduction of a debt. This is normally in the form of a collective agreement, a written agreement with the employee, legislation or a court (Section 34 of the Basic Conditions of Employment Act 75 of 1997) (BCEA). Do you know when it is legal to make a pay deduction from a salary in South Africa? South Africa - Get a free salary comparison based on job title, skills, experience and education. The employer must pay you the agreed-upon salary for work you've already done. UIF contributions), court order or arbitration award. When can a deduction be made from my salary? Annual leave is regulated under s 20 of the BCEA. Bates also advised that if an employer was considering reducing an employee’s salary or non-discretionary bonus, for example to cut costs, they would need to consult with the employee first and seek their agreement to the proposed changes. Employee Benefit Schemes. There are laws you need to follow when reducing an employee’s salary. The Labor Contract Law does not provide for pay cuts due to an employee’s misconduct. Given the cost of such claims, it’s vital to know where you stand. The guidelines of the World Health Organization can provide useful guidance, such as making hand sanitizing gel available to workers, reminding workers to stay at home when they feel sick, disinfecting workplaces, etc. Make sure you know what is in your work Contract. Can a company change your salary or salary structure during the lockdown? Should an employer be in a position to remunerate an employee for a period (typically a month) but would also like to receive the Covid-19 benefit from UIF, the employer should consider the scale of benefits from 60% of remuneration for employees who earn in excess R3 500.00 to 38% for employees who earn R17 712.00 (i.e. This enforced leave will not apply for periods of self-isolation or quarantine and only applies to the statutory portion of annual leave (ie, 15 business days). The deduction is made in terms of a collective agreement, law (e.g. Reduced working time and/or forced shutdown. Pursuant to your query, it may be noted that an employer affected by the precautionary measures taken to contain Covid-19 may choose to temporarily reduce the salary of … Complete our Salary Survey and Win a Wage! Employers generally cannot lower the salary of an H-1B or E-3 visa holder to less than the amount (or range) stated in the approved DOL labor condition application for that worker. In Plaatjies vs RK Agencies (2005, 1 BALR 77) the employer offered the employee an alternative post at a lower salary due to the fact that the employer had lost a major contract. South African COVID-19 Corona Virus. Pursuant to your query, it may be noted that an employer affected by the precautionary measures taken to contain Covid-19 may choose to temporarily reduce the salary of its employee. “An employer cannot unilaterally reduce an employee’s salary,” she said. Of course, you’d also prefer to not be left without any income. Get your South African law questions answered by Experts.