Archive for the Wages and salaries Category

Question: Leave and overtime pay

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


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?

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.

Question: Wage Payments

Posted in Questions and Answers, Wages and salaries with tags , , on October 24, 2009 by Maggie


If the minimum wage according to the Sectoral determination is R1700-00 per month, are we correct if we pay the person as follows:

Your total direct cost to the company will be R1700-00 per month made up as follows:

Cash:            R1545-45
Provident fund:  R154-55
(10%) company contribution

Are we still conforming to the minimum wage law although we are paying the person only R1545-45 cash and the rest as a provident contribution?


The industry in which you operate, namely the retail and wholesale distribution sector does not make provision for provident fund membership or contributions to be paid by employers on behalf of its employees.  It follows that in terms of the applicable sectoral / wage determination your employee is entitled to be paid his / her full wage of R1 700.00.  Nothing, however stops you from agreeing with your employee that his / her remuneration is structured in the way as proposed.  It is, however, only after agreeing to such a remuneration structure, that such particular pay practice will be lawful and compliant.