As 2013 draws to a close, many employees will be eyeing the prospect of receiving their bonus or thirteenth cheque – but are they guaranteed?<\/p>\n
According to Benjy Porter, the CEO of Legal and Tax, while many employees use the terms “13th cheque” and “bonus” interchangeably, they are not exactly the same.<\/p>\n
“A 13th cheque is a bonus that the employee can expect with certainty if this is part of his or her employment contract,” Porter said.<\/p>\n
“A bonus is a reward based on the employee\u2019s performance and the performance of the business.<\/p>\n
With many South African companies battling to be profitable in a tight economy, employees can no longer take their bonuses for granted unless they are specifically entitled to a 13th cheque, Porter said.<\/p>\n
According to Porter, one’s individual contract of employment will specify what an employee is entitled to – either a 13th cheque, or a bonus that depends on performance or the performance of the company.<\/p>\n
However, no employee has a right to a bonus under South African labour law, unless it is stated in their employment contract, he said.<\/p>\n
\u201cJust because you received a bonus last year, doesn\u2019t necessarily mean you will get one this year – or that it will be as large as it was in earlier years.”<\/p>\n
\u201cStudy your employment contract and company policy to understand what you can expect before you spend money you may not be getting.\u201d<\/p>\n
“If you are taking a new job and you are promised a bonus or 13th cheque as part of your package, be sure that this condition is in your employment contract before you sign,” Porter noted.<\/p>\n
If a company has followed the company policy or the terms of an employment contract, employees will not be able to contest a company decision not to give a bonus.<\/p>\n
However, in the event that employers breach employment contracts – when a company pays no bonus or a low bonus when it is contractually obligated to – employees may be able to take legal action.<\/p>\n
“If bonuses are paid because they have become ‘custom and practice’, the non-payment of the bonus may fall under the definition of Unfair Labour Practice. The reason for this is that it might be seen as a change to terms and conditions of employment,” Porter said.<\/p>\n
Money fights the fear of death<\/a><\/strong><\/p>\n Rand hits R10 to the dollar<\/strong><\/a><\/p>\n