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NEW EARNINGS THRESHOLD AS FROM 1 JULY 2014
Certain provisions of the Basic Conditions of Employment Act of 1997 (the BCEA) pertaining to working time do not apply to senior management or employees who earn in excess of certain amount per year (the “earnings threshold”).
The earnings threshold will increase to R 205 433.30 per year with effect from 1 July 2014 (The previous threshold was R 193 805 per year).
How does it affect employees?
The effect of earnings threshold is that the limitations, protections or the right to additional pay afforded by certain provisions of the BCEA do not apply to employees earning in excess of the new threshold. These provision are:
- section 9 (hours of work),
- section 10 (overtime),
- section 11 (compressed working week),
- section 12 (averaging of hours),
- section 14 (meal intervals)
- section 15 (daily and weekly rest periods),
- section 16 (pay for work on Sundays)
- section 17(2) (night work), and
- section 18(3) (public holidays on which the employee would not ordinarily work).
Employees that currently earn between R193 805 and R205 433.30 per year were previously excluded from these provisions but will now enjoy additional protection and become entitled to payment for overtime, double pay for work on public holidays, etc. notwithstanding the fact that their contracts might state that they do not qualify.
What is meant by earnings?
For purposes of the new threshold "earnings" means the regular annual remuneration before deductions, i.e. income tax, pension, medical and similar payments but excluding similar payments (contributions) made by the employer in respect of the employee. Subsistence and transport allowances received, achievement awards and payments for overtime worked are not regarded as remuneration for the purpose of this notice.
Can existing contracts be changed?
Existing contractual provisions with employees that earn in excess of the threshold that are more favourable to the employee, e.g. that do provide that the employee is entitled to additional pay for overtime, Sunday work, etc., remain valid an enforceable. If an employer wants tot change existing terms and conditions, it will have to be negotiated with the employee.
Disclaimer: The material above is provided for general information purposes only and does not constitute legal or professional advice. Neither the author nor the publisher accepts responsibility for any loss or damage that may arise from reliance on information contained in this article.
Comments
Ek is n brandweerman en werk n 56 uur werk week oor n 3 week siklus 24 uur soft else. Die werkgewer het besluit om my nie meer nagskoftoelaag te betaal nie omdat ek bo kant die threshold verdien.Die ooreenkoms op basiese diensvoorwaardes sluit my uit maar die werkgewer verwag van my om nagskof te werk sonder om met my te onderhandel oor enige betaling of tyd af soos die ooreenkoms betaal.Die werkgewer het ook nie n nagwerk policy nie.Hoe maak ek om betaling te kry vir nagskof gewerk.
AnTwoord aan John: Afhangende van hoe dit bewoord is, kan u kan die werkgewer waarskynlik gebonde hou aan die ooreenkoms wat aanvanklik gesluit is. Ek stel voor dat u regsadvies inwin.
I am above the threshold and my fixed term contract termination notification letter dated 12 December 2014 which ended 31 January 2015 apply to the new labour act.
Reply to Colleen: If you earn above the threshold, all the principles that applied in the past in respect of fixed term contracts would still apply after the implementation to of the amendments to the Labour Relations Act.
does the earning threshold include shift workers
Reply to Gcinumuzi: The earnings threshold applies to all employees, including shift workers
Goeie dag,
Wil net hoor wat my regte is. Het laasjaar 1 Okt begin werk as bestuurderes by n gaste huis, het begin met n salaris van R8500p.m maar die eienaar het nie belasting afgetrek nie. Begin Jan gee hy my n kontrak om te se ek is vasgestel, maar begin maart die jaar word my salaris in 2 gedeel omdat hy begin belasting aftrek, een helfte is my salaris ander is oortyd. Intussen werk ek ook meer as n jaar en werk elke naweek en vakansie dae, kry net 2 dae n mnd af, en is op stand by 24/7. Het nie eers jaarlikse verlof gekry nie. Wil asb weet wat my regte is sou ek bedank.
Dankie
Amor
Antwoord aan Amor: Die feitelstel klink baie kompleks. Ons stel voor dat u ‘n afspraak met ‘n kundige in arbeidsreg reel sodat u behoorlik geadviseer kan word. Alternatiewelik kan u die Departement van Arbeid nader indien u nie onkostes wil aangaan nie.