Regulation 35(4) of the Pension Funds Act regulations is declared invalid and unenforceable, Pauperien liability: Strict liability reigns supreme again, Employment law update – Unfair dismissal referred to CCMA when pending automatically unfair dismissal claim in the Labour Court, Employment law update – Resigning after disciplinary inquiry but before sanction handed down and Labour Court’s jurisdiction to hear a claim for unlawful dismissal, Recent articles and research – December 2020, Electoral reform – constitutionality of the Electoral Act. Can a company change your salary or salary structure during the lockdown? However, if it states that you “must” work for 40 hours, you may possibly have claim for wages for 40 hours even if your employer requires you to work less. As coronavirus (CoVID-19) spreads in South Africa, employers and employees alike find themselves in unchartered territory. 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. As South Africa enters the 21-day national lockdown, business owners are understandably confused and concerned about its economic consequences. 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. 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. An employer cannot reduce any employee's salary to below the current minimum wage. But, what they can't do is lower your salary without telling you in advance and you (the employee) must agree to it. Can an employer ‘force’ an employee to take annual leave during the lockdown? 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 … Your employer may look at reducing your pay in an attempt to reduce their overheads if they're struggling to stay afloat. Will their businesses go bankrupt and what happens to employees, if they cannot afford to keep them on or pay them? The total deduction is not more than 25% of the worker’s net pay. Labour law in South Africa, and more specifically the Basic Conditions of Employment Act, stipulates what “wage” means. 2. it is not taxable. If you are faced with a reduced income, the law states that you are not exempt from your obligations such as rent or debt. There are laws you need to follow when reducing an employee’s salary. Reducing an employee’s salary is not an easy decision to make. However, this is an unusual action for an employer to take, and it can be fraught with legal risks. Are tenants being robbed of their rental deposits? More specifically, employers must take measures to reduce the risk of a Coronavirus infection. 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. So the question becomes: if your pay is reduced, can you quit while still being eligible to receive unemployment benefits? Furthermore, and in accordance with s 41(4) of the Basic Conditions of Employment Act 75 of 1997 (BCEA): ‘An employee who unreasonably refuses to accept the employer’s offer of alternative employment with that employer or any other employer, is not entitled to severance pay in terms of subsection (2)’ (our italics). A salary reduction is much more than just changing your payroll.