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
IconHuman Resources
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
IconWellness Programs
Advertise Here
  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 »

CEO confidence rises despite new risks and uncertainty

Confidence in company growth rises SA CEOs plan to increase their headcount over the next 12 months SA concerns about exchange rate volatility and economic uncertainty at record levels Worldwide, CEOs’ ...
Read More »

  

President Xi Jinping: Don’t Blame Economic Globalization for the World’s Problems

Davos-Klosters, Switzerland: Chinese President Xi Jinping delivered a robust defence of globalization to business, government and civil society leaders in the opening plenary session of the 47th World Economic ...
Read More »

  

Weak Economic Conditions Weigh on South Africa's Housing Market, says Report

PARIS (S&P Global Ratings): A weak macroeconomic environment, still-high household indebtedness, and rising interest rates burden the South African housing market, said S&P Global Ratings in a report published ...
Read More »

  

SA to participate in World Economic Forum

Pretoria: Deputy President Cyril Ramaphosa is in Davos-Klosters, Switzerland, where he is leading a South African delegation to the World Economic Forum annual meeting. The meeting, scheduled from Tuesday ...
Read More »

 

More News »

Image

Healthcare »

Image

Life »

Image

Retirement »

Image

Short-term »

Advertise Here

Quick Survey »

  Sponsored by
Image
Does your company plan on hiring additional employees in 2017?


|Results »
Image
Image
Image
Image
Advertise Here

From The Glossary »

Icon

Policy Proceeds:

The proceeds of a policy refers to the combination of your investment, either by way of recurring premiums or a single premium investment, plus the investment growth that is paid out to you after the policy term, usually five or ten years with new generation policies, but may be longer, as in the case of certain endowment policies or retirement annuities.
More Definitions »

 
 
By using this website you agree to the Terms of Use.
Copyright © Stoker Risk & ICT (Pty) Ltd 2004 - 2017.
All Rights Reserved.
Icon

Advertise

  Icon

eZine

  Icon

Contact IG

Icon

Media Pack

  Icon

RSS Feeds