Advertise Here
Icon

Directory

IconActuaries
IconAdministration Outsourcing
IconAsset Managers
IconAssociations & Institutes
IconAuditors
IconBanking
IconBBBEE Consulting and Verification Agencies
IconBusiness Chambers
IconBusiness Process Management
IconCompliance
IconConsumer Protection
IconCorporate Governance
IconCredit Bureaus
IconCurrencies
IconDebit Order Collection Facilities
IconEducation and Training
IconFAIS
IconInformation Technology and Software Partners
IconInvestment Consulting
IconInvestment Fund Managers
IconLegal
IconLISPs
IconListed Equities
IconOmbud
IconParticipation Bond Managers
IconPolicy Trading
IconProperty Unit Trusts (PUTS)
IconPublications
IconRegulatory Authorities
IconStock Exchange
IconSurveys and Research
IconTraining Courses & Workshops
IconUnit Trust Fund Managers
IconVoice Logging
IconWellness Programs
Image
  Subscribe To »

Employers urged to review employment terms in light of changes to BCEA

Published

2012

Wed

06

Jun

Following the announcement on 1 June 2012 by the Minister of Labour raising, with effect from 1 July 2012, the earnings threshold in the Basic Conditions of Employment Act (BCEA), employers employing workers whose earnings will, as a result, fall below the new threshold may need to review their working time arrangements with these employees and their payrolls to make sure they are still compliant.

 

This is the advice of Stuart Harrison, Director at ENS who explains that the earnings threshold in the BCEA, which operates to exclude employees earning above the threshold from certain BCEA entitlements and protections, will increase from the current R172,000 per annum to R183,008 per annum, an increase of 6.4%. This will be effective as of 1 July 2012.


“Employees earning above this threshold are excluded from working time protections such as maximum ordinary working hours, meal intervals, limits on how much overtime they are permitted to work, enhanced rates of pay for overtime work and work on Sundays, minimum rest intervals, shift allowances and access to transport for night work, etc.


The increase in the threshold will therefore operate to extend these BCEA working time protections to those employees who are currently earning between R172,000 and R183,008.  Employers therefore need to review their affairs to ensure that they are still compliant,” says Harrison.


Harrison also warns that employers should also generally take care to avoid unintentionally granting their employees contractual rights (over and above the statutory rights) to these BCEA working time protections.

 

“Otherwise employees whose earnings increase beyond the threshold, which would ordinarily result in them no longer being entitled to the statutory working time protections, may end up still being entitled to the protections because their contracts (entered into at a time when they earned less than the threshold) inadvertently give them contractual rights thereto,” he says.

 

According to Harrison, what constitutes "earnings" for purposes of the threshold remains unchanged.  “It is ‘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: Provided that subsistence and transport allowances received, achievement awards and payments for overtime worked shall not be regarded as remuneration’,” he says.

 
Source: Epic Communications (Pty) Ltd
 
« Back to previous page Print this page » |
 

Breaking News »

Can you claim against a surety if the debtor is in business rescue?

By Riza Moosa, Director Norton Rose Fulbright South Africa Every suretyship securing a company’s debts should specifically preserve the creditor’s rights to recover from the surety despite discharge ...
Read More »

  

Becoming a mom – how will your business cope?

Cape Town: After spending time, energy and money building up a successful business, taking the decision to start a family can be a scary one for prospective ‘momtrepreneurs’. What will happen to the ...
Read More »

  

Actis substantially exits Alexander Forbes through a successful Listing

London: Actis, the global pan-emerging market private equity investor, has substantially exited from Alexander Forbes Group Holdings Ltd, one of South Africa’s leading diversified financial services companies ...
Read More »

  

Downgraded to A4[1], Brazilian economy gears towards a year of adjustments in 2015

International credit insurer Coface says Brazil has not taken advantage of its buoyant economy of the past to undertake the reforms needed to modernise its infrastructure and improve the country’s business ...
Read More »

 

More News »

Image

Healthcare »

Image

Life »

Image

Retirement »

Image

Short-term »

Advertise Here
Image
Image
Image
Image
Advertise Here

From The Glossary »

Icon

Lloyd’s of London:

An association of persons grouped together in syndicates providing insurance which is incorporated by the Lloyd’s Act of 1x7 1(34 Vict. C21).
More Definitions »

 
 
By using this website you agree to the Terms of Use.
Copyright © Stoker Risk & ICT (Pty) Ltd 2004 - 2014.
All Rights Reserved.
Icon

Advertise

  Icon

eZine

  Icon

Contact IG

Icon

Media Pack

  Icon

RSS Feeds