Employers may require their employees to take their accrued annual leave. An employer must be able to justify a business rational … But I am not convinced that it can address the crisis completely,” he said. WEF asked a virologist, South African banks want loan guarantees amid coronavirus fallout. 2  The federal minimum is $7.25 per hour. An employer must submit the following key documents: Employers can send their application to: The labour-intensive nature of the South African economy further reduces the economy’s ability to continue as normal during a time of lockdown. He noted that the Basic Conditions of Employment (BCEA) stipulates the minimum conditions of employment and provides that the annual leave that an employee is entitled to take is 15 working days per annum (21 ordinary days). Where employees are able to work from home, they ought to be remunerated. Governments are implementing a range of measures to contain the spread of the virus. 13 / 21.67. 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But business-as-usual has not been possible for many organisations, leaving employers Credits are accumulated at a rate of 1 day for every 4 days worked by the employee up to a maximum of 365 days in a 4 year cycle. Is it possible for the employer to change your contract in your probation stadium from only a salary to a salary and Commission? As an alternative to the leave bank, an employer should be required by statute to deduct money from the employee in the same way that is done for medical aid or the Unemployment Insurance Fund (UIF), July said. As South Africa enters the 21-day national lockdown, business owners are understandably confused and concerned about its economic consequences. 1.5.1 Bargaining Councils and employers can become Agents for the disbursement of this benefit, by application. If you're an employee who isn't protected by a bargaining agreement or employment contract, there is no set amount that you have to be paid. “In the first week of lockdown, our members were talking about how to fund staff salaries,” says Gerhard Papenfus, CEO of the National Employers Association of South Africa (NEASA), which represents more than 10,000 businesses. nett salary). Notice pay is the amount of money an employer can pay an employee in lieu of notice when the … Can I include casual employees in my wage subsidy application? The UIF has also set up a dedicated hotline for any enquiries about the Covid-19 benefits. “This benefit will be de-linked from the UIF’s normal benefit structure. Even businesses that are back up and running faced losses during the first phase of the lockdown, which they are struggling to recover. This article outlines these changes thus far. For example, it may be possible to reduce the annual leave required from employees, thereby enabling the employer to claim the top up from UIF. Employees who occupationally contracts COVID-19 are covered by the Compensation for Occupational Illnesses and Diseases Act (COIDA). Some have reduced staff wages to cut cost … Most employees have contractually fixed hours. “It is important to note that this does not mean the employee forfeits the two leave days,” he said. It almost certainly won’t be business as usual. “Now – amid rumours of a lockdown extension – the focus has shifted to the survival of their businesses.” … To reduce your hours. Employers - What are your options during lockdown? Comments section policy: Any attacks on BusinessTech, its journalists, or other readers will result in a ban. Employers can only tell you to reduce your hours if it's already outlined in your contract saying that they can. Employers are faced with a unique situation that require a sharp and tactful approach to balance the payment of employee salaries, looking after the individual employee needs and keeping the business afloat. Employers have to pay the full salary of all employees — including allowances — during the March 18-31 Movement Control Order period, said the Ministry of Human Resources (MoHR). This 'lockdown' is temporary. However, the government has encouraged employers not to retrench employees, but rather to have recourse to the Temporary Employer/Employee Relief Scheme. The employer must pay you the agreed-upon salary for work you've already done. Employees cannot refuse this request, as the employer may unilaterally require employees to take their annual leave (section 20(10) of the Basic Conditions of Employment Act). In South Africa, the nation-wide lockdown has seen many businesses having to shut down operations. In other words, donated leave days cannot be claimed back.”. Between a rock and a hard place. document.write(''); document.write(addy46329); … 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. //-->\n These include - 1. Unfortunately, employers can, in most cases, cut your pay or reduce your hours since most employees are "hired at will." The aftermath of the lockdown will have lasting consequences. document.write(''); addy46329 = addy46329 + 'labour' + '.' + 'gov' + '.' + 'za'; With some employees also opting to self-quarantine, there are a number of labour law considerations that South African businesses will have to consider. Do employers have to pay workers during lockdown? Employers can only tell you to reduce your hours if it's already outlined in your contract saying that they can. The government has announced that employees may be entitled to claim existing UIF benefits due to reduced working time, in light of the Covid-19 pandemic. The Centre has justified in the Supreme Court its March 29 direction asking private establishments to pay full wages to workers during the Covid-19 lockdown and said that employers claiming incapacity in paying salaries must be directed to furnish their audited balance sheets and accounts in the court.. “An employer cannot … Good afaternoon. The national lockdown has had profound effects on working life in South Africa.. Employees in essential services are continuing to work, but under strict health and safety requirements; and employees who can work remotely, now work from home.The lockdown has therefore inevitably changed the circumstances and certain of the terms and conditions of many employees’ employment.. Then there is the category … The issue is further clarified in Section 35(1) of the BCEA, which states: “an employee’s wage is calculated by reference to the number of hours the employer ordinarily works”. Until that is done private employers would be bound to pay salaries/wages to the employees during the lockdown in compliance with the direction contained in the order dated 29.03.2020. “Apart from approaching financial institutions, it is my view that if there ever was a critical time for employers to approach their own pension funds for financial assistance this is the time,” he said. Employers may require their employees to take their accrued annual leave during a temporary shutdown. You need JavaScript enabled to view it. In a lock-down, it is clear that many employees are not in a position to render the contractual services or at all. What can an employer deduct from my salary? In such a circumstance, the employer is not obliged to continue remunerating its employees due to such forced lockdown by the government. Unpaid Leave In light of the Covid-19 pandemic and the government lockdown that has been implemented in South Africa, employers may implement the principle of "no work, no pay". More information on where your closest CCMA offices are located can be found on www.ccma.org.za. Caring and responsible employers that are unable to pay the full salaries of the workers they send home for their health and safety due to the lockdown are … The benefits will only pay for the cost of salary for the Employees during the temporary closure of the business operations and the salary benefits will be capped to a maximum amount of R17 712, 00 per month, per Employee and an Employee will be paid in terms of the income … Employers can refuse to allow essential workers to work from home if there is a good reason for the refusal (such as, the work cannot be done from home). If you are employed by a company or a division of a company that provides essential goods or essential services, you are obliged to continue working during the lockdown. We would like to cut your pay by 10%. Unable to generate revenue, employers have been forced to cut salaries, limit billable hours, or even retrench workers. South Africa Law. LexisNexis South Africa; A number of international and local companies have requested that their employees work from home due to the dire consequences of the COVID-19 coronavirus pandemic. Any agreements reached should be recorded in writing as a variation to the underlying employment agreement and employees are entitled to obtain … Many employees will hear this kind of message this month. Bosses can absolutely lower salaries just like they can raise salaries. The biggest, most powerful and most experienced of employers can lose in the Labour Court. Traditionally matters of national well-being have been viewed as government’s problem which they must address. “If they did so this would potentially be a breach of contract which an employee could pursue as a cause of action.” Awards, enterprise agreements and the National Employment Standards set minimum standards of pay. Essential workers who contract COVID-19 during the lockdown are also entitled to compensation under COIDA. As a next step, explore whether you can reach agreement with employees to either reduce pay or reduce hours of work. South African workers will still be … It really is as simple an answer as that. It is a lockdown, I don’t know what employers and owners of businesses don’t understand. The Western Cape says it will buy its own Covid-19 vaccines – and is willing to share with the rest of South Africa Covid-19, elections and the economy – what South Africans can expect in 2021 This ‘lockdown’ is temporary. In the event the employer and employee do not reach consensus on the variation of … where the ordinary wages or salary of an employee named in your application was lawfully below the amount of the subsidy before the impact of COVID-19, pay the employee that amount. The employee must have agreed to the deduction. According to Sandile July, director and labour law specialist at Werksmans Attorneys, the simple answer is that the employment relationship becomes suspended. To claim for this benefit, employees should submit the following documents: Employers are entitled to commence with a redundancy process due to operational requirements. On March 20, the Labour Ministry issued advisories to the employers’ associations not to terminate their employees (especially precarious workers) and reduce wages for their absences, among others. An employer may legally implement the no-work-no-pay principle during the lockdown. This benefit will be at a flat rate equal to the minimum wage (R3,500) per employee for the duration of the shutdown or a maximum period of three months, whichever period is the shortest. In that case, the legal obligation to pay ends: but do not panic, that point has not been reached. Permalink Reply Quote Printer Friendly. In other cases there may be a provision in the contract that provides for a reduction in pay. 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