GARDEN ROUTE NEWS - As from 1 March, the earnings threshold will increase from R211 596,30 to R224 080,48 per annum. 

This means that the following sections of the Basic Conditions of Employment Act as contained in Chapter 2 (Regulation of working time) of the act will not apply to all employees earning more than R224 080,48 per year (R18 673,37 per month).

Section 9 (Ordinary hours of work): Employees earning in excess of the above-mentioned amount can work more than the prescribed 45 hours per week.

Section 10 (Payment of overtime): They can work without being paid for overtime hours worked, and the overtime hours may exceed the prescribed maximum of 10 hours per week.

Section 11 (Compressed working week): The limitations regarding a compressed working week does not apply to them.

Section 12 (Averaging of working hours): The limitations regarding averaging of working hours do not apply to them.

Section 14 (Meal intervals): They are not entitled to a daily meal interval.

Section 15 (Daily and weekly rest period): They are not entitled to a daily rest period of at least twelve consecutive hours or a weekly rest period of at least 36 consecutive hours.

Section 16 (Pay for work on Sundays): They are not entitled to the prescribed premium rate if they work on a Sunday.

Section 17(2) (Night work): Employees in this category are entitled to the protection prescribed by the act in terms of night work, but not to a night work allowance.

Section 18 (3) (Public holidays): According to this determination only employees who do not regularly work on a public holiday are not entitled to double pay for a public holiday, but those who regularly work on a public holiday are entitled to double pay (Section 18 (2)).

Negotiations

The sections as mentioned are a statutory right of all employees earning not more than earnings threshold, therefore employees earning more, will have to negotiate and enter into individual agreements with their employers as far as these sections are concerned.

For the purposes of this notice 'earnings' means the regular annual remuneration before deductions, i.e. income tax, pension, medical and similar payments, but excluding similar payments (contributions) made by the employer in respect of the employee: Provided that subsistence and transport allowance received or achievement awards, intermittent payments for occasional overtime shall not be regarded as remuneration for the purpose of this notice.

Important to note is the fact that the Basic Conditions of Employment Act differentiates between an employee earning more than the threshold and a "senior managerial employee". 

According to the act a senior managerial employee means "an employee who has the authority to hire, discipline and dismiss employees and to represent the employer internally and externally". 

Therefore, if an employee has these powers, even though he/she earns less than the threshold, the whole of Chapter 2, except Section 7 which states that working hours must be regulated with due regard to the health and safety and family responsibilities of employees, does not apply to him/her.

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