Labour Bytes

FORFEITURE OF ANNUAL LEAVE

Question: Can annual leave be forfeited?

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NEW EARNINGS THRESHOLD AS FROM 1 JULY 2014

The earnings threshold will increase to R 205 433.30 per year with effect from 1 July 2014. This has favourable implications for employees that previously earned in excess of the threshold, but will fall under the threshold as from 1 July 2014.

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TERMINATION OF A CONTRACT OF TEMPORARY EMPLOYMENT

Must an employer give notice of termination of the services of an employee who has been employed on a temporary basis?

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EFFECT OF SICK LEAVE ON OVERTIME PAY

How does an employee’s absence due to illness affect overtime pay?

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NEW MINIMUM WAGE RATES FOR THE HOSPITALITY INDUSTRY

The Department of Labour has announced a minimum wage increase for the Hospitality Industry effective 1 July 2014.

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NEW MINIMUM WAGES FOR THE HOSPITALITY INDUSTRY APPLICABLE FROM 1 JULY 2012

As from 1 July 2012, the minimum wage rates in the hospitality sector are increased by the following:

Employers with 10 or less employees:

Monthly rate: R 2240,60
Weekly rate: R 517,10
Hourly rate: R 11.49

Employers with more than 10 employees:

Monthly rate: R 2495,80
Weekly rate: R 576,00
Hourly rate: R 12,80

These increases are only on minimum wage rates. Higher earners therefore do not necessarily have to receive the same percentage increase.

The current wage increases have been determined by utilizing the CPI reported by Stats SA on 23 May 2012. The current level of CPI is 6,4%. The wage increase is therefore determined by adding 6,4% plus 1% as stated in the current Sectoral Determination. Therefore the total increase is 7,4%.

The increases do not apply in areas that are governed by bargaining council agreements, for example the Bargaining Council for the Restaurant, Catering & Allied Trades that applies in Johannesburg and certain surrounding areas, and the Bargaining Council for the Tearoom, Restaurant & Catering Trade in Pretoria.

 

19 Comments

  1. Jan Truter
    Posted 28 October 2013 at 1:42 pm | Permalink

    Reply to Thom: Sectoral Determination 14: Hospitality Sector applies to for Limpopo. If you want us to send you a copy of SD14 and the minimum wages, email us at info@labourwise.co.za

  2. Thom
    Posted 28 October 2013 at 1:10 pm | Permalink

    Good day
    Could you please inform me what is act with regards to pay ect is applicable to the reataurant industry. (Ocean basket)We are based in Bela Bela in the Limpopo Province. It would be much appreciated if I can get info on the above.Could you please e mail me the info as requested.
    Thank you
    Thom

  3. Jan Truter
    Posted 26 September 2013 at 10:41 am | Permalink

    Reply to Jean: The formulae for calculating of wages or remuneration is contained in section 4 of the Sectoral Determination 14: Hospitality Sector. If you want us to send you a copy, email your request to info@labourwise.co.za

  4. Posted 26 September 2013 at 6:53 am | Permalink

    I have a small Bed and Breakfast business and 4 employees working there. To work out a weekly rate you multiply monthly x 12 then divide by 52. but to get a daily rate what do you divide by? Not 365 because they don’t work every day of the year? Please let me know what the daily rate is for less than 10 employees. thank you.

  5. Jan Truter
    Posted 20 September 2013 at 9:51 am | Permalink

    Reply to Izak: The Scope of application of the Sectoral Determination for the Hospitality Sector includes a “hostel”. It does not qualify this by excluding a situation where there is only one party that pays the bill. On the face of it you would be included, but you may have an argument that your establishment should be excluded based on the dictionary definition of “hospitality”.

  6. izak
    Posted 19 September 2013 at 5:39 pm | Permalink

    If we are a mine hostel that has now been privatised do we fall under the hospitality sector . We are not in the tourism or hospitality service per say. We have a contract with a mine and we use their hostel where their employees stay and the mines pay us a service fee. Not the residents . we have a captured audience -only the mine employees of a specific shaft. Surely this is not the same as the hotels and B&B ETC ..

  7. Jan Truter
    Posted 14 August 2013 at 7:45 am | Permalink

    Reply to Wynand: There are many bargaining councils and their minimum rates are published in different ways and at different times. The best way to find up to date information, is to go to their respective websites.

  8. wynand
    Posted 13 August 2013 at 1:57 pm | Permalink

    Good Day

    please can you inform me where I can get all the minimum pay rates for all the bargaining councils in SA

  9. Jan Truter
    Posted 5 March 2013 at 7:47 am | Permalink

    Response to Johan: Sometimes there is an overlap, but in your case it seems to lean more towards Hospitality

  10. Johan
    Posted 4 March 2013 at 10:43 am | Permalink

    Hi Jan, we have an Game (Hunting) Lodge in The Marble Hall area. We have 5 Employees (1 Manager, 2 cleaners, 1 tracker, 1 gardener). our lodge offer hunting and accommodation (all self catering). Do we fall under the Hospitality Industry or Agricultural Industry? Your help is much appreciated.

  11. Jan Truter
    Posted 5 December 2012 at 1:53 pm | Permalink

    Response to Sonya: I assume you are not in an area where a Bargaining Council Agreement applies to your business (e.g. Johannesburg or Pretoria area), in which case the Sectoral Determination will not apply). If it does apply to your business, you would have to pay your at least the minimum rate, as gratuities or tips are specifically excluded. While the payment of an annual bonus shows your commitment to your employees, it will not help you if there is a dispute on the minimum wages – you will be found lacking in compliance.

  12. Sonya Ribeiro
    Posted 5 December 2012 at 1:23 pm | Permalink

    I own a restaurant and my 8 employees only work a 5 day week / 2 days off and never exceed 40 hours a week. I pay them R2200 per month plus they get anywhere between R400 – R700 a month in tips plus an annual bonus. I also provide full transportation to and from work for them. I realize that I am paying them slightly short of the minimum wage of R2240.60 but with all the added benefits does that make up for the R40.60

  13. Jan Truter
    Posted 29 October 2012 at 5:44 pm | Permalink

    Response to Mike: The minimum wages laid down in terms of Sectoral Determinaton 14: Hospitality Sector apply to camps and caravan parks. We’ve sent it to you.

  14. Jan Truter
    Posted 13 August 2012 at 2:14 pm | Permalink

    To Maureen: Where are you based?

  15. Jan Truter
    Posted 13 August 2012 at 2:13 pm | Permalink

    Response to Lisa: You first have to check whether you are in an area that falls under a Bargaining Council Agreement for the catering industry – if so, the minimum rate might be different to that which is prescribed by the Sectoral Determination for the hospitality industry. The minimum monthly rate will be based on the assumption that the employees work normal working hours, which is likely to be 45 hours per week. To the extent that their working hours exceed this, you would have to pay them at the applicable overtime rate.

  16. Maureen Kotze
    Posted 13 August 2012 at 12:48 pm | Permalink

    I need more information regards the
    going rates in our area for this year

  17. Lisa
    Posted 13 August 2012 at 12:44 pm | Permalink

    Goodday
    I’m new to this, and need clarity please. I just opened up a takeaway and have 3 staff members I need to work for me. Are you saying the minimum wage I can pay is R2240.60? Working hours are mon-sat, 0800-1800.

  18. Jan Truter
    Posted 31 July 2012 at 5:18 pm | Permalink

    Response to Pam: “Employees” refers to all employees, including management.

  19. pam
    Posted 31 July 2012 at 1:21 pm | Permalink

    i would like to know, when ‘they say more then 10 employees, are they refuring to total employees in the company ie managers or just lets say ‘kitchen workers’

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