Fill the Salary Questionnaire and learn about real wages, Living and Working during the Coronavirus Pandemic - Link me to the Covid 19 Survey and Daily Updates, Do you know when it is legal to make a pay deduction from a salary in South Africa? 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 1997) (BCEA). Pay Deductions and work agreement, Payroll Deductions and contract, pay deductions and wages. Section 189 of the Labour Relations Act 66 of 1995 provides, inter alia, that an employer can dismiss one or more employees based on operational requirements. President Cyril Ramaphosa mentioned certain relief schemes, which an employer would be able to access. December 1st, 2020. The question of whether an employer can reduce an employee’s salary to make up for the superannuation guarantee charge (SGC) increase allows me to introduce some FW Act provisions which, in my experience, many employers do not know about. We provide answers to frequently asked questions . If they have reduced your salary without you agreeing to, that is what is called a unilateral change of the terms of the agreement and would therefore be illegal and unenforcible. COVID 19 TERS Programme – Employer guidance On 26 March 2020, South Africa went into lockdown. Generally, it is unlikely an employer will be able to lawfully impose a pay cut without consulting with employees first. Before the Covid-19 pandemic, South Africa’s economy and workforce were characterised by high levels of unemployment and income inequality. The forms can be submitted by e-mailing the application to the nearest UIF processing centre. Should the employer experience financial difficulties, salary reduction is an option to be discussed with employees before retrenching them, but it has to be a consultative process. The relevant Award or Enterprise Agreement (if one applies) will set minimum pay and conditions. Paying less than the approved amount would likely violate the prevailing wage requirements for those visa categories. Can my boss deduct money from my salary? The employer may legally reduce an employee’s salary if he or she violates its policies. Where this is the case, an employer may reduce the employee's pay in line with the minimum wage rates. Employers generally cannot lower the salary of an H-1B or E-3 visa holder to less than the amount (or range) stated in the approved DOL labor condition application for that worker. Employers may not deduct money from a worker’s pay unless: The worker agrees in writing to the deduction of a debt. Cut staff hours. To reduce your hours. The Labor Contract Law does not provide for pay cuts due to an employee’s misconduct. By continuing to use this site you consent to the use of cookies on your device as described in our cookie policy unless you have disabled them. In answer to the above question, yes, you can ask your employee to take a pay-cut, but no, they do not have to agree. Make sure you know what is in your work Contract. Rights and remedies: How do reality shows violate constitutional rights? While the arbitrator accepted this as a valid reason the demotion was still unfair because the employer had failed to consult with the employee before making the offer. As part of the regulations enacted by President Ramaphosa in terms of the Disaster Management Act, all non-essential businesses were required to cease trading. What You Can Do: Be proactive. 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 … An employer should consult the employee before making any changes to the employees working hours and commensurately reduce wages. Who takes the blame? But the salary is obviously reduced. It is tempting to ask everyone to take a 10% pay cut to try and keep the business afloat. 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. If the company needs to close as a direct result of COVID-19 and the employer cannot pay his employees for this period, the employer can apply for the ‘National Disaster Benefit’ from the UIF.
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.