Bosses can absolutely lower salaries just like they can raise salaries. The first option is that they can reach an agreement with the employees that they take paid leave for whole or part of the period from 26 March to 16 April. The aftermath of … By now, Day 4 of lockdown, South Africa has started settling into this strange new reality, and with that, comes a lot of practical questions. … The lockdown drastically impacts all businesses across every sector. 13 / 21.67. You can google section 189 of the Labour Relations act for the requirements and also … _____ Anonymous Date: Mar 16, 2017. Essential goods include food and non-alcoholic beverages; cleaning and hygiene products; medical supplies, personal protective equipment, chemicals and packaging of medical supplies; fuel and basic goods such as airtime, electricity and withdrawal of cash. var addy46329 = 'Covid19ters' + '@'; Is it possible for the employer to change your contract in your probation stadium from only a salary to a salary and Commission? 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. “If the employees have exhausted all of their leave, the employer may have to resort to allowing the employees to take negative leave. “The establishment of the Temporary Employee / Employer Relief Scheme (TERS) is in no doubt capable of having immense potential with regards to reducing the adverse consequences of Covid-19. Temporary Employer / Employee Relief Scheme (TERS). During the lockdown, the employer may be required to temporarily close their business and send employees home, which constitutes a temporary lay-off. South Africa Law. If it is reached, again, don't panic, The Government cannot leave more than 10.25 million employees in the lurch. The employee must have agreed to the deduction. For example, contracts may state “40 hours weekly” or “9:30am to 5:30pm, Monday to Friday”. What happens after the lock-down? The point to remember is that there must be consultation with employees and not a unilateral implementation of a change to terms and conditions imposed by the employer. Therefore, there is no entitlement to payment while employees are on lockdown. 2 The federal minimum is $7.25 per hour. as is defined in the current lockdown where 5-day workers lose 13 working days) the benefit would be calculated on a pro rata basis, i.e. Yes, if you would have expected those casuals to work for you during the period of the lockdown. However, employers cannot reduce wages to a level which is lower than the minimum wage in their state. However, the majority of companies in South Africa have set a precedent by paying their employees by the 25th of the month, says Arlene Leggat, President of the South African Payroll Association (SAPA). 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 … For an employer to qualify for the temporary relief, it must satisfy a number of requirements, including the following: The DoL published an Easy-Aid Guide for Employers which outlines the process which an employer must follow in order to access the UIF benefits. Employers unable to continue with business, as usual, may need to reduce their workforces and implement pay reductions or reduced working time. The Department of Labour has published new regulations which outline South Africa’s new Covid-19 Temporary Employee/Employer Relief Scheme (TERS). Working from home entitles employees to remuneration for the period. If you are covered by the Employment Act, your employer can deduct your salary only for specific reasons or if required by authorities. With South Africa’s lockdown well and truly underway, companies are facing unprecedented times. He added that should the lockdown period be extended – as the president announced on Friday evening – by and additional two weeks – and cause for the employees to exhaust their leave days, those employees should be allowed to further invoke their other leave days (eg compassionate leave, sick leave, annual leave). It almost certainly won’t be business as usual. July said that South Africa’s laws were not designed for the current situation. The R 17 712 per month remuneration is therefore based on the previous month’s full remuneration and not the “nett” remuneration received during Lockdown. But, what they can't do is lower your salary without telling you in advance and you (the employee) must agree to it. “Simply put, there is an intervening impossibility of performance which leaves both the employer and employee unable to meet their obligations. This includes an already struggling South Africa, where citizens are preparing for Friday’s 21-day lockdown. var prefix = 'ma' + 'il' + 'to'; Where an employer fails to comply with these duties, a tribunal can order the employer to pay to an employee up to 90 days’ pay as a protective award [19]. document.write(''); As coronavirus (CoVID-19) spreads in South Africa, employers and employees alike find themselves in unchartered territory. As a next step, explore whether you can reach agreement with employees to either reduce pay or reduce hours of work. However, your employer cannot deduct more than 50% of your total salary payable in any one salary period. Employers have had to make drastic changes. //--> Employers may require their employees to take their accrued annual leave. Letter of Authority, on an official company letterhead granting permission to an individual specified to lodge a claim on behalf of the company; MOA (completion of the agreement between UIF, Bargaining Council and Employer); Prescribed template that will require critical information from the employer (this template has not been provided); Evidence/payroll as proof of last three months employee(s) salary(ies); and. Employment and Labour Minister Thulas Nxesi explains that if employers have been forced to close during the lockdown, they can apply to the relief scheme to pay their employees. The ETI claims are available for a period of 24 months per eligible employee. If the employer does not have work for you they can retrench you but must follow the correct procedure. How do I reduced my employee’s hours of work and salary due to our economic climate. It is important to begin with contractual rights: an employer is contractually obliged to pay the employee for their full contracted hours. If the hours are not worked, there would be no legal claim for a wage or a salary. document.write('span>'); In terms of the normal ETI rules, an employer can claim ETI relief only in respect of eligible employees, such as employees between the ages of 18 and 29. This benefit is only available where an employee and employer have contributed to the Fund and is subject to the employee having accumulated enough credits to be paid during this time. 15 January 2020 Reply . An employer may legally implement the no-work-no-pay principle during the lockdown. The employee will be entitled to be paid the difference between what the employee is being paid and the normal UIF benefits payable, should an employee lose employment (subject to a capped threshold of 178k/annum). Where an employer implements short time/reduced working hours (in agreement with the employee), the employee may be able to claim relief from our statutory insurance fund, the Unemployment Insurance Fund (UIF). Response to the Covid-19 benefits the correct procedure '' can be found on www.ccma.org.za position to render contractual. Continue with business, as usual, may need to reduce your hours if it is to! The Compensation for Occupational Illnesses and Diseases Act ( COIDA ) a dedicated hotline for any enquiries about the of... Virologist, South African workers will still be … “ an employer can change terms and conditions employment... Discuss a revised payment structure with them for that reduced workload point not! 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