THE LABOUR COURT OF SOUTH AFRICA, JOHANNESBURG. The employer can apply for the “National Disaster Benefit” from the UIF if unable to pay employees during this period. Money can only be taken off an employee’s salary if he agrees to it, or if the employer is legally obliged to do so. We provide answers to frequently asked questions . Human Resources & Management ... An employer can only deduct leave owed if the employee has agreed to it in writing. Your employer may withhold these amounts even if your paycheck falls below the minimum wage as a result. A 4-week notice period must not be reduced to less than two weeks. If an employee resigns and fails to provide you with the minimum period of notice, the relevant Modern Award that applies to your business will entitle you to withhold either up to one week's wages, or up to an amount equivalent to the amount that the employee would have earned if they had provided you with the required period of notice and had worked such notice. This is the most important rule in salary reductions. For example, an employee's hours or salary cannot be cut for taking time off for jury duty, to serve in the National Guard, or for whistle-blowing regarding an employer's actions that are harmful to the public. If he or she is asked to work on a public holiday, remuneration should be paid at least double the rate. Your employer will be within in their rights to place you on forced leave during the lockdown period – and for many South Africans, that may end up being the least worse-case scenario. Employees can also claim an unpaid salary via the Small Claims Court provided the outstanding salary does not exceed R15 000. Brief explanation: An employer may not unilaterally change agreed terms or conditions of employment. Your employer cannot withhold your final salary if you have served your notice period. An employer's obligation to deduct PAYE and issue IRP 5 certificates August 1999 Introduction. What to do: Remember that if you have not had monthly tax deducted from your salary, then you will not receive an IRP5. In this situation, you should be paying provisional tax twice a year. But it could at least go some way to alerting the employee to take proper care of the employer’s property. In Labour News by Pieter 2 September 2011 21 Comments. ... How does the Law Society of South Africa fulfil its functions? Arlene Leggat, the president of the South African Payroll Association, explains how employees can deal with late salary payments. REPUBLIC OF SOUTH AFRICA. For example, you might ask your employer to withhold money for your 401(k) retirement account, your share of health insurance or life insurance premiums, or for union dues. Can an employer withhold an employee's final salary payment if the employee leaves without a proper handover? The notice period South Africa cannot be extended beyond the stated limits, and all notices are issued through a letter of resignation South Africa. This benefit will be at a flat rate equal to the minimum wage (R3,500) per employee for the duration of the shutdown or a maximum period of … The GEO manages all aspects of payroll for workers in South Africa including taxes, withholding, social security payments and other statutory requirements. Unfortunately, illegal withholding of salary and wage theft is a fairly common problem. An employer is obliged to deduct PAYE from all amounts of remuneration paid to an employee. When considering whether, when and how to approach the employer to discuss a salary increase, it is a … As coronavirus (CoVID-19) spreads in South Africa, employers and employees alike find themselves in unchartered territory. The employer must pay you the agreed-upon salary for work you've already done. The Labour Court considered s34 of the BCEA and held that s34(1) identifies two classes of deductions that can be made by an employer from an employee’s remuneration. It can relate to a right and can be resolved by resorting to industrial action or a lock-out. One of the measures that is designed to provide relief to employers and employees in South Africa is the COVID-19 TERS benefit. THE REPUBLIC OF SOUTH AFRICA THE LABOUR COURT OF SOUTH AFRICA, JOHANNESBURG ... Respondent Heard: 4 January 2013 Delivered: 7 January 2013 Summary: Urgent application- claim for unpaid salary- alternative remedy available in the form of a claim under section 77(1) of the BCEA. A Directive regulating these benefits was issued on 8 April 2020. You should pay employees at least 1.5 times the usual rate of pay. Because of this, it is imperative to understand your rights as an employee under city, state, and federal wage and hour laws. According to the South African labour law resignation notice period rules, the employer and employee may change these terms. In terms of the Immigration Act, it is unlawful for an employer to knowingly employ a foreigner who is not authorised to be employed in South Africa, the … Wage/salary reductions for reasons that are in opposition to public policy are also not legal. Employer-employee loan agreements: Employer-employee loan agreements usually provide for nominal interest to be paid by an employee to the employer on the principal debt over a specified period of time, thereby: deferring the payment of the loan; and; levying interest on the deferred payment. Companies can outsource the employment and payroll of their staff in South Africa to a GEO, like Shield GEO. 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. South Africa: Compensation ... A matter of mutual interest is any matter relating to employment between the employee and employer. South Africa. +27 21 422 1323 info@abgross.co.za My current employer owes me roughly R 40 000 in unpaid back salary. Answer: Agreed working hours may only be increased or decreased by agreement between the parties. In terms of Section 32 of the Basic Conditions of Employment Act, the employer is obligated to pay his/her employees’ salaries. Types of employer-employee loans: The rules relating thereto are set out in the Fourth Schedule to the Income Tax Act. “(1) An employer must pay to an employee any remuneration that is paid in money – (a) in South African currency; (b) daily, weekly, fortnightly or monthly; and This was also rejected by the employee. Last Thursday (13th Oct) I had enough of the rude attitude I was getting whenever I politely enquired into expected payment dates. However, the majority of companies in South Africa have set a precedent by paying their employees by the 25th of the month, says Arlene Leggat, President of the South African Payroll Association (SAPA). What you can do if your salary is paid late. Source: Article by Jan du Toit in SA Labour Guide. You work for a foreign employer in South Africa who does not withhold tax. Get information on labour laws about termination of an employment contract at workplace in South Africa. An employer can change terms and conditions of employment through consultation and negotiation. A contract can be varied relating to salary reduction, bonus waiver or reduction, compulsory use of annual leave during the lockdown period and so forth. According to state and federal laws, an employer is not allowed to withhold or fail to pay the salary or wages an employee has earned. Disclaimer: This article has general application and should … Question: May an employer increase or decrease agreed working hours of its employees? Know more about grounds for termination of an employment contract Complete our Salary Survey and Win a Wage! JUDGMENT. 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 … Related: Salary Deductions in South Africa. The South African Labour Law allows employers leeway to pay their employees until the seventh day of the following month. The employer relied on s34(5) of the Basic Conditions of Employment Act, No 75 of 1997 (BCEA) as the basis for the deduction and the lawfulness thereof. The notice period gives both parties time to plan for … South Africa January 26 2017 Employers may be tempted to get an employee to pay for the cost of damages or losses which he or she causes by simply deducting the money from his or her salary. He was then retrenched. For second or further non-compliances, a fine that may be imposed on the employer is an amount that is greater of thrice the value of the underpayment or thrice the employee’s monthly wage. This is possible for South African nationals and foreigners. 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 workplace. CHANGING HOURS OF WORK. ... A South African employer company is responsible to deduct tax for services rendered and payments made in South Africa. But, what they can't do is lower your salary without telling you in advance and you (the employee) must agree to it. December 1st, 2020. 2. For R85.00 per month, subject to our membership rules, members can have access to some of the best labour lawyers in South Africa FREE OF CHARGE. South Africa's Basic Conditions of Employment Act (BCEA) states that an employer may not make deductions from an employee’s remuneration or salary without fulfilling specific criteria. 724. The Parliament of South Africa has passed the Minimum Wage Act 2018 (Presidential assent still in progress). The employer was prepared to pay the employee an amount of ZAR314 000, which represented the amount of the combined payments that the employer and employee would have paid to the employee’s provident fund until the date of his retirement. Working on a public holiday is only with the worker's agreement. 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