1.5 How does the employer apply for this benefit and how does it get paid out to employees? In response to the economic impact of the pandemic on businesses, some have asked employees to reduce their weekly hours. Yes, if you would have expected those casuals to work for you during the period of the lockdown. Essential workers who contract COVID-19 during the lockdown are also entitled to compensation under COIDA. Employers - What are your options during lockdown? The biggest, most powerful and most experienced of employers can lose in the Labour Court. 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. With South Africa’s lockdown well and truly underway, companies are facing unprecedented times. Connect one-on-one with {0} who will answer your question. 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. “Those who have donated their own leave days would not be entitled to the aforementioned payout. A contract can be varied relating to salary reduction, bonus waiver or reduction, compulsory use of annual leave during the lockdown period and so forth. 13 / 21.67. _____ Anonymous Date: Mar 16, 2017. For example, it may be possible to reduce the annual leave required from employees, thereby enabling the employer to claim the top up from UIF. If it is reached, again, don’t panic, The Government cannot leave more than 10.25 million employees in the lurch. LexisNexis South Africa; A number of international and local companies have requested that their employees work from home due to the dire consequences of the COVID-19 coronavirus pandemic. Find out more about the types of allowable salary deductions. Employers may require their employees to take their accrued annual leave. In South Africa, the nation-wide lockdown has seen many businesses having to shut down operations. The South African Labour Law allows employers leeway to pay their employees until the seventh day of the following month. Employers are not precluded from retrenching employees during the national lockdown, provided the employer has a valid operational reason to implement retrenchments and follows the procedures set out in section 189 of the LRA. Thus an employer is under no legal obligation to pay salaries/wages to employees because no “ hours of work ” would have taken place during the lock-down period which entitles employees to earn wages/salaries. Any agreements reached should be recorded in writing as a variation to the underlying employment agreement and employees are entitled to obtain … However, your employer cannot deduct more than 50% of your total salary payable in any one salary period. In the event the employer and employee do not reach consensus on the variation of … Do employers have to pay workers during lockdown? “It is important to note that this does not mean the employee forfeits the two leave days,” he said. Not all companies have continued to pay employees their full salaries during South Africa’s lock-down. Caring and responsible employers that are unable to pay the full salaries of the workers they send home for their health and safety due to the lockdown are … the company's closure must be directly linked to the Covid-19 pandemic. 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). As coronavirus (CoVID-19) spreads in South Africa, employers and employees alike find themselves in unchartered territory. We would like to cut your pay by 10%. If it is reached, again, don't panic, The Government cannot leave more than 10.25 million employees in the lurch. My work has just inform me that they want to move me from one divion to another division at a lower salary,are they allow to drop my salary. The employer can apply for the “National Disaster Benefit” from the UIF if unable to pay employees during this period. The law The law stipulates that employers must pay their employees within seven … 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. More information on where your closest CCMA offices are located can be found on www.ccma.org.za. Essential workers cannot unreasonably refuse to work if they are in a position to do so. “An employer cannot … Gleeson warned that employers should bear in mind that salary payments are contractual entitlements of employees, and are protected by contract law and potentially also by awards, enterprise agreements and the National Employment Standards. //-->\n Employers are encouraged to look beyond the 21-day lock down period, with the view of retaining the skills and good labour relations with their employees if business was to resume at a later stage, albeit at a smaller scale. An employer must submit the following key documents: Employers can send their application to: But I am not convinced that it can address the crisis completely,” he said. However, the government has encouraged employers not to retrench employees, but rather to have recourse to the Temporary Employer/Employee Relief Scheme. The Western Cape says it will buy its own Covid-19 vaccines – and is willing to share with the rest of South Africa Covid-19, elections and the economy – what South Africans can expect in 2021 document.write(''); Employers can refuse to allow essential workers to work from home if there is a good reason for the refusal (such as, the work cannot be done from home). Bosses can absolutely lower salaries just like they can raise salaries. Large South African employers have announced drastic measures to cope with the coronavirus lockdown in South Africa, which include salary cuts and 4-day work weeks. Employers have to pay the full salary of all employees — including allowances — during the March 18-31 Movement Control Order period, said the Ministry of Human Resources (MoHR). According to Sandile July, director and labour law specialist at Werksmans Attorneys, the simple answer is that the employment relationship becomes suspended. Where the Compensation Fund has accepted liability, the Total Temporary Disablement benefit will apply from date of the diagnosis, and continue for a maximum of 30 days. 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). nett salary). the company must be registered with the UIF; the company must comply with the application for the financial relief scheme; and. Most employees have contractually fixed hours. “Now – amid rumours of a lockdown extension – the focus has shifted to the survival of their businesses.” But business-as-usual has not been possible for many organisations, leaving employers perplexed about the issue of salary … Temporary Employer / Employee Relief Scheme (TERS). Permalink Reply Quote Printer Friendly. Even when the country was in the throes of the State of Emergency in the 80s and early 90s, work continued, albeit with strict social controls in place and a strong police and military presence. Therefore, there is no entitlement to payment while employees are on lockdown. Can I include casual employees in my wage subsidy application? The employer must pay you the agreed-upon salary for work you've already done. How can employees get paid during South Africa’s Covid-19 lockdown? Comments section policy: Any attacks on BusinessTech, its journalists, or other readers will result in a ban. The BCEA, section 34 allows only certain deductions from salary for debt and damages caused to the employer. The current Covid-19 crisis has caused a number of employees to stop rendering services as the lockdown means that they cannot come into work or work from home. If you're an employee who isn't protected by a bargaining agreement or employment contract, there is no set amount that you have to be paid. Confirmation of bank account details in the form of certified latest bank statement. With South Africa’s lockdown well and truly underway, companies are facing unprecedented times. Until that is done private employers would be bound to pay salaries/wages to the employees during the lockdown in compliance with the direction contained in the order dated 29.03.2020. If they have reduced your salary without you agreeing to, that is what is called a unilateral change of the terms of the agreement and would therefore be illegal and unenforcible. … Get your South African law questions answered by Experts. var prefix = 'ma' + 'il' + 'to'; Get the latest information about COVID-19 from the South Africa Resource Portal. You can take this to the CCMA as an unfair labour practice. Where employees are able to work from home, they ought to be remunerated. In some industries, employees can work remotely, while in others, employees had to … Happy New Year! The employment law landscape has undergone a number of changes and remains fluid as the crisis continues. “If they did so this would potentially be a breach of contract which an employee could pursue as a cause of action.” Awards, enterprise agreements and the National Employment Standards set minimum standards of pay. Should such agreement not be forthcoming, the principle of "no work no pay" can be applied. Retrenching employees is becoming harder and harder. … It almost certainly won’t be business as usual. Ask an Expert; Ask a Lawyer; South African Laws; Labour Law - Can my employer reduce my basic salary due to… Many employees will hear this kind of message this month. ... An employer can change terms and conditions of employment through consultation and negotiation. “Now – amid rumours of a lockdown extension – the focus has shifted to the survival of their businesses.” Employers may require their employees to take their accrued annual leave during a temporary shutdown. An employer may legally implement the no-work-no-pay principle during the lockdown. South Africa Law. Employers who are unwilling or unable to the pay salaries to employees who cannot work during during the lockdown have a number of options open to them to attempt to ensure that employees do not suffer unduly. “Therefore it is high time that legislation be either amended or enacted to compel employers to deduct two leave days, from the 15 that is due to an employee, so as to put them into what is termed a leave bank. Employees who occupationally contracts COVID-19 are covered by the Compensation for Occupational Illnesses and Diseases Act (COIDA). document.write(''); Notice pay is the amount of money an employer can pay an employee in lieu of notice when the … This ‘lockdown’ is temporary. The employee must have agreed to the deduction. You need JavaScript enabled to view it. What is notice pay? During the lockdown, the employer may be required to temporarily close their business and send employees home, which constitutes a temporary lay-off. Where employees are able to work from home, they ought to be remunerated. I spoke to employers this week and some are saying we’ll give 60% of your salary and 40% of your leave. 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. Is it possible for the employer to change your contract in your probation stadium from only a salary to a salary and Commission? As the novel coronavirus continues to spread, employers across the globe are attempting to manage the workplace effect of the Covid-19 pandemic. But business-as-usual has not been possible for many organisations, leaving employers Working from home entitles employees to remuneration for the period. Credits are accumulated at a rate of 1 day for every 4 days worked by the employee up to a maximum of 365 days in a 4 year cycle. i am trying to cut back on expenses. The complex interplay between different types of rights and individual circumstances mean expert advice as early as possible can help their chances of success. What happens after the lock-down? Read more about Employers not paying full salary must present balance sheet in court: Govt on Business Standard. 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