dwp eNewsletter

Vol 1 : Ed 10 - March 2008

 

 

| in short |

| earnings threshold for minimum protections raised |

 

In terms of Section 6(3) of the Basic Conditions of Employment Act (BCEA) the Minister must determine which employees will be excluded from the application of certain sections of the BCEA.

 

It is important to take note that the earnings* threshold laid down by the Minister is currently on R115 572.00 per annum and will change to R149 736.00 per annum on 1 March 2008.

 

This means that with effect from 1 March 2008, if your employees earn above the threshold amount per year, then the provisions of sections 9, 10, 11, 12, 15, 17(2) and 18(3) of the BCEA will not apply to them.

 

The sections listed above deal with things like maximum work hours, overtime, compressed work weeks, rest periods, night work and payment for overtime.

 

Employees, whose earnings fall under the threshold, will have the full protection of every section of the BCEA, including the sections listed above. This protection will include the following:

• Overtime must be agreed between the employee and employer;
• The employee has the legal right and entitlement to demand payment for overtime worked at the rate of at least 1,5 times his normal wage;
• The employee can also enter into an agreement with the employer whereby he can be given time off work instead of payment for overtime worked;
• Generally, the employee can refuse to work more than 45 hours per week and he can refuse to work more than 10 hours per week overtime. He can also refuse to work more than 12 hours in any one day, consisting of 9 hours normal time and 3 hours overtime.

 

These rights will not apply to employees who earn more than R149 736.00 per month (from 1 March 2008).

*“Earnings” is defined as: gross pay before deductions, i.e. before deducting income tax, pension, medical aid and similar payments, but excluding similar contributions made by the employer in respect of the employee.

 


| contact us |

delport ward & pienaar

attorneys, notaries &  conveyancers
1st floor - cornerstone house

16 loop street

cape town

8001

 

telephone, cape town
+27-21-419.3733

 

telefax, general
+27-21-419.3743

 

telefax, conveyancing
+27-21-425.6782

 

telefax, collections dept
+27-21-421.6625

 

telephone, london
+44-20-8133.0337

 

telephone, washington dc
+1-202-657.6733

 

telephone, hong kong
+852-8139.7374

 

| info@dwp.co.za |

 

 

1st floor - cornerstone house, 16 loop street, cape town | docex 600, cpt | t, +27-21-4193733 | f, +27-21-4193743

info@dwp.co.za | www.dwp.co.za