{"id":699599,"date":"2023-06-28T10:32:51","date_gmt":"2023-06-28T08:32:51","guid":{"rendered":"https:\/\/businesstech.co.za\/news\/?p=699599"},"modified":"2023-06-29T07:25:37","modified_gmt":"2023-06-29T05:25:37","slug":"warning-to-businesses-in-south-africa-trying-to-dodge-the-national-minimum-wage","status":"publish","type":"post","link":"https:\/\/businesstech.co.za\/news\/business\/699599\/warning-to-businesses-in-south-africa-trying-to-dodge-the-national-minimum-wage\/","title":{"rendered":"Warning to businesses in South Africa trying to dodge the national minimum wage"},"content":{"rendered":"\n<p>The Department of Employment and Labour&#8217;s Director Pravine Naidoo said it is an unfair labour practice for an employer to unilaterally alter hours of work or other conditions of employment in implementing the National Minimum Wage (NMW).<\/p>\n\n\n\n<p>Speaking at an advocacy seminar in the Eastern Cape on Tuesday (27 June), Naidoo said that in the context of the implementation of the NMW, the employers reduce hours of work which would be regarded as unfair labour practice.<\/p>\n\n\n\n<p>As a result of this, the inspector shall advise the employee to refer the unfair labour practice to the Commission for Conciliation, Mediation and Arbitration (CCMA) in terms of the Labour Relations Act 66 of 1995 as amended.<\/p>\n\n\n\n<p>Naidoo said the NMW does not include payment of allowances such as transport, tools, food or accommodation, payments in kind -board or lodging, tips, bonuses or gifts; unless it is otherwise specified in sectoral determinations.<\/p>\n\n\n\n<p>Sectoral determinations are government-established regulations that set minimum employment standards for specific sectors or industries, ensuring fair treatment and decent working conditions for workers within those sectors &#8211; covering aspects such as leave, benefits and work hours.<\/p>\n\n\n\n<p>According to the department, Naidoo also warned employers to refrain from making deductions in pay without the employees agreeing in writing, or there is a debt specified in the agreement, or the deduction is required or permitted by law, collective agreement, court order or an arbitration award or where a deduction is as a result of loss or damage to reimburse the employer.<\/p>\n\n\n\n<p>Unathi Ramabulana, the deputy director of employment and labour, added that sectoral determinations established under the Basic Conditions of Employment Act (BCEA) remain effective while the National Minimum Wage Act (NMWA) regulates the national minimum wage that employers should pay workers.<\/p>\n\n\n\n<p>She said that the CCMA has the jurisdiction to arbitrate disputes brought directly to it by an employee earning below the<strong> threshold of R241,110 per year <\/strong>for any amount owing in terms of the NMWA, a contract of employment or a sectoral determination.<\/p>\n\n\n\n<p>The earnings threshold determines the application of certain provisions in labour law. Employees earning below the threshold are fully protected by the BCEA, enjoying benefits such as overtime pay and limited working hours. <\/p>\n\n\n\n<p>However, employees above the threshold must negotiate these provisions with their employers during contract negotiations.<\/p>\n\n\n\n<p>&#8220;An employer who is found to have failed to comply with the NMWA <strong>will be fined by a labour inspector an amount equal to twice the value of the underpayment or twice the monthly wage<\/strong>, whichever is greater for first-time offenders and an amount equal to thrice the value of the underpayment or thrice the monthly wage, whichever is the greater, for repeat offenders,&#8221; Ramabulana, said.<\/p>\n\n\n\n<p>Christopher Blayi, the acting regional commissioner of the CCMA, stated that the BCEA and NMWA-related dispute referral processes to the Commission. He said that the Commission offers administrative support to those earning below the threshold.<\/p>\n\n\n\n<p>&#8220;BCEA and NMWA disputes must be heard within 30 days via conciliation or arbitration, and there is no objection to the process being entertained. On the other hand, compliance orders and undertakings can be referred to the CCMA to be made an Arbitration Award, which can be executed via the Sheriff of the court,&#8221; Blayi said.<\/p>\n\n\n\n<p>He told the seminar that in the 2022\/23 financial year, the Commission in Mthatha received 16 referrals for failure to pay an amount owing in terms of the NMWA, and so far, there is no referral for such claims.<\/p>\n\n\n\n<hr class=\"wp-block-separator has-alpha-channel-opacity\"\/>\n\n\n\n<p><strong>Read: <a rel=\"noreferrer noopener\" href=\"https:\/\/businesstech.co.za\/news\/finance\/699519\/the-sticky-issue-the-reserve-bank-just-cant-shake\/\" target=\"_blank\">The &#8216;sticky&#8217; issue the Reserve Bank just can&#8217;t shake<\/a><\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"<p>The Department of Employment and Labour has held a summit discussing labour law regulations and possible fines for businesses that do not comply.<\/p>\n","protected":false},"author":10,"featured_media":645931,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[9872],"tags":[26],"class_list":["post-699599","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-business","tag-headline"],"_links":{"self":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/699599","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/users\/10"}],"replies":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/comments?post=699599"}],"version-history":[{"count":4,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/699599\/revisions"}],"predecessor-version":[{"id":699885,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/699599\/revisions\/699885"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/media\/645931"}],"wp:attachment":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/media?parent=699599"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/categories?post=699599"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/tags?post=699599"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}