Employers: Take Note Of The New Remuneration Thresholds
From 1 July 2014 the Minister of Labour amended the remuneration an employee earns to fall under certain protections (listed below) of the Basic Conditions of Employment Act (BCEA) to R205,433-30 per annum (R17,119-44 per month) - this is up from R193,805-00 per annum (R16,150-42 per month).
This figure is before deductions like PAYE, medical aid etc – in other words the gross amount paid.
This threshold is significant for businesses as most employees falling below it are afforded the BCEA protections listed below. It is worth checking how many of your employees now fall under the BCEA.
Note that certain employees such as senior management, some sales staff, and employees working less than 24 hours a month aren’t eligible for some of these protections – take advice on specifics.
What are the protections?
In essence the significant ones are -
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The number of hours your employee works a week (45 hours)
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How much overtime they are allowed to work (10 hours a week)
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How much they get for overtime – at least one and a half times their normal wage
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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)
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On Sundays employees get double time and on public holidays the hours worked plus a full day’s pay
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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.
Provided by May and Company
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