Archive for the Uncategorized Category

Question: Leave and overtime pay

Posted in Leave, Questions and Answers, Uncategorized, Wages and salaries on November 2, 2009 by labourlawoffices

Question:

Our company requires that our artisans work a standby and are paid overtime when called out for duty. Many of them earn above the threshold for overtime, but we still pay same to them. The standby is done on a rotational basis and they average one standby every 6 weeks.
The problem arises that when they take annual leave, which is taken without prejudicing their allocation for standby and resulting overtime, we still have to pay them BECA Leave pay for the “lost” overtime, although they work on the rotation system and are not prejudiced by taking their leave.
Given this situation do we still give them BCEA leave?

Answer
An employer is obliged to grant its employees at least 21 consecutive days annual leave on full remuneration in respect of each 12 months employment cycle.  Section 21 of the Basic Conditions of Employment Act, 1997 requires an employer to pay an employee at least equivalent to the remuneration that the employee would have received for working for a period equal to the period of annual leave.  This is calculated at the employee’s rate of remuneration at the time and if regard is had to Section 35 of the Act, it is only the ordinary hours of work, namely 45 hours per week that (leave) wages have to be calculated and paid at.  Anything paid over and above this is not a legal requirement but an ex gratia payment made by an employer.

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