The Basic Conditions of Employment
The Basic Conditions of Employment
The Basic Conditions of Employment
OF EMPLOYMENT ACT
Part A Unit 5
Introducttion
The purpose of the BCEA
is to advance economic
BCEA was introduced as
development and social
Act 75 of 1997 and it was
justice by giving efect to
amended in 2002.
and regulating the right to
fair labour practices.
“collective agreement”
means a written
agreement concerning
terms and conditions of
“basic condition of employment or any
employment” means a other matter of mutual
provision of this Act or interest concluded by
sectoral determination that one or more registered
stipulates a minimum term or trade unions, on the
condition of employment; one hand and, on the
other hand—
• one or more employers;
• one or more registered
employers’ organisations; or
• one or more employers and one
or more registered employers’
organisation
Basic terms cont…
01 02 03 04
“remuneration” means “sector” means an “sectoral determination” “senior managerial
any payment in money or industry or a service or a means a sectoral employee” means an
in kind, or both in money part of an industry or a determination made under employee who has the
and in kind, made or service; Chapter Eight; authority to hire, discipline
owing to any person in and dismiss employees
return for that person and to represent the
working for any other employer internally and
person, including the externally;
State, and “remunerate”
has a corresponding
meaning;
1. APPLICATION
• The Basic Conditions of Employment Act of 1997 (BCEA) states that “[a]n employer may not require or permit
an employee to work more than –
(a) 45 hours in any week? and
(b) nine hours in any day if the employee works for fve days or fewer in a week? or
(c) eight hours in any day if the employee works more than fve days in a week.”
• Overtime may be worked only by agreement.
• The agreement between parties may not require or permit an employee to work more than 12 hours on a day.
The agreement lapses after one year (s10(5) of BCEA)
• A collective agreement may increase the maximum permitted overtime to 15 hours a week, but this type of
collective agreement may not apply more than 2 months in any 12-month period.
• Overtime is remunerated at one-and-half times the employee’s normal remuneration. It is 1,5 times the regular
hourly wage for each hour worked beyond 45 hours per week.
• In terms of section 11, a written agreement between the employer and employee may provide for the
employee working for up to 12 hours is a day, without receiving overtime pay.
• Salary is R6 500.50 per month
• Divide by 6.5 gives pay per week
• Divide by number of hours worked
• Daily rate divide by the number of days ordinarily worked
Overtime cont…
• ‘night work’ means work done after 18:00 and before 06:00 the next day.
• An employer may only require or permit an employee to work at night if
there is an agreement to this efect and if the employee is compensated
by the payment of an allowance or a reduction of working hours.
• An employee may only work at night if a transport is available. If public
transport is available this is sufcient.
• The employer in terms of s17 will only be obliged to provide a transport if
there is no transport at the beginning and end of employee's shift.
• Note the code of good practice for arranging working time
• specifc protections built in for these employees, such as consultation
where possible
• Provide transport to and from work
• Concern for health and safety of employees and family responsibilities
2.5 Public holidays (s18)
• Aluma, works at a manufacturing plant, and a public holiday falls
on a Wednesday. If a public holiday falls on a normal working day,
the employee is entitled to their normal daily wage.
• Public holidays falling on working day – 2 x normal daily wage or
normal daily wage Paid double his daily rate or his normal daily rate
plus the amount for actual time worked
• Public holiday falling on days on which are not ordinarily worked –
normal daily wage which would be a working day must be paid one
days pay plus an amount calculated as wage rate x whole time
worked
• Employee not working public holiday falling on ordinary working
day – receive a normal daily for that day
2.6 Meals and rest breaks (s14-15)
• One week, if the employee has been employed for six months or less;
two weeks, if the employee has been employed for more than six months but not more
than one year;
• four weeks, if the employee has been employed for one year or more or, in the case of
a farmworker or domestic worker , employed for more than six months.
• Instead of employer giving the employee notice he may pay the employee an amount
equivalent to the notice period.
• That these notice periods are the minimum and may not be shortened by any
agreement.
• However, section 37 (2) (b) does provides that a collective agreements May permit the
notice period of four weeks to be reduced to not less than two weeks.
• Automatic termination of employment contract- public servants may
automatically have their contract of employment terminated when they
absent themselves without permission for a stipulated number of days
(1 months for public servants generally and 14 days for teachers), no
remedy in LRA.
• Public Service Act 103 of 1994 grants right to challenge on review the
decision not to reinstate them.
• Impossibility of performance- if either of the parties becomes incapable
of performing their obligations due to fault of the other party the
contract will terminate. Eg if employee is imprisoned for life.
• See NUM V CCMA 2009, SA post ofce Ltd v Mampeule 2009
Termination cont…
• Section 41 provides to the payment of severance pay
• If an employer dismisses an employee for operational reasons, the employer must pay an
employee severance pay equal to at least one week’s remuneration for each completed year of
continuous service with that employer.
• Section 41 regulates the payment of severance pay. When an employee is dismissed on account of
the employer operational requirements the employer myst pay employee severance package.
• Calculate severance pay [where termination for operational requirements or ito S38 Insolvency Act
] - on same basis as annual leave pay but note:
• Nufaw v Mgijima (2004) held ’remuneration‘ when calculating severance pay, excludes employers'
contribution to provident and medical aid funds
• If the employee’s contract is terminated in terms of section 38 of the Insolvency Act is entitled to
severance pay of min 1 week for each completed year of service
• No severance pay if reasonable alternative work ofered [see Freshmark (Pty) LTD v CCMA &others
[2003] 6 BLLR 521 (LAC) at 530
• Employee entitled to certifcate of service
• Schatz v Elliott International (Pty) Ltd & another (2008) 29 ILJ 2286
• the employer’s offer of alternative employment was acceptable to the employee in every
way except with regard to the amount of relocation costs. Despite the absence of
agreement on this issue, it was held, the employer’s offer had been reasonable and the
employee’s refusal to accept it meant that she was not entitled to severance pay.
• In Pretorius v Rustenburg Local Municipality & others (2008) 29 ILJ 1113 (LAC)
• the majority of the LAC found the employee’s insistence that he be offered the same
position or a position at the same or higher level was unreasonable in the circumstances.
By rejecting the employer’s offer he accordingly forfeited his right to severance pay.
• Sayles v Tartan Steel CC (2000) 2 BLLR 161 (LAC)
• Labour Appeal Court confrmed the decision of the court a quo that an
employee who had initially agreed to alternative employment instead of
retrenchment, but then changed his mind, was not entitled to severance pay.
• Pama & others v CCMA & others
• as the alternative employment may be with “that employer or any other
employer”, the legislature clearly contemplated that technically the ofer of
employment may emanate from another employer. The dismissing employer
would have complied with subsection (4) if it facilitated the employment with
the new employer”.
• A dispute can be referred to the CCMA for arbitration as to the
entitlement of severance pay
• The LC held that the phrase “in terms of this section” in section 41(6)
restricts a commissioner or the court to making a determination only
in terms of the statutory minimum or of an agreement, if there is one.
Thus, “if the rate, formula or method of calculation is agreed the court
or a commissioner may enforce it, even if it is more than a week per
year of service”
Termination of employment
• Termination by notice
• The Act stipulates further that notice of termination of a
contract of employment must be given in writing except
when it is given to or by any illiterate employee.
• Notice of termination of employment, when given by the
employer, must not be given during any period of leave
to which the employee is entitled in terms of chapter 3
of the Act, and may not to run concurrently with any
period of leave to which the employee is entitled,
except sick leave.
Payment on termination of
employment
• An employer may pay the employee the remuneration the employee would
have received if the employee had worked during the notice period.
• Can only deduct money from an employee if:-
• Agrees in writing to a specifc debt
• Required in terms of any law collective agreement, judgement or
arbitration award
• Can deduct for loss or damage sufered by the employer
Prohibition of the employment of
children an of forced labour (s43-48)
• BCEA give efect to international standards (the minimum Age Convention of
1973).
• Section 43(1) prohibits:
• A child under 15 years to work
• Child under school leaving age,
• A child to perform work that is inappropriate for a person of that age to work, or
• A child’s well-being , physical or mental health or spiritual moral or social
development to be placed at risk by the performance of any work.
• 15-year-olds are no longer subject to compulsory schooling in terms of the law
are allowed to work in advertising, sporting, artistic work etc. but only io terms
of regulations or a sectoral determination issued by the minister of labour.
• It is a criminal ofence to permit a child to work in contravention of BCEA.
• BCEA also prohibits forced labour by providing that no person may demand or
impose such labour on any person. Contravention of this section also
constitutes a criminal ofence.
VARIATION OF BASIC CONDITIONS
OF EMPLOYMENT
The BCEA
contemplates various
ways in which There are some terms Maximum working The protection ofered
statutory terms and that cannot be varied. hours established by to employees
conditions of These are: the Act. performing night work
employment can be
varied.
A minimum of 2 Prohibition of
4 months maternity
weeks per year Sick leave and employment of
leave
annual leave children.
• Section 49 of BCEA permits a collective
agreement concluded in a bargaining council
may alter, replace or exclude any basic
condition of employment if the collective
agreement is consistent with the purpose of this
Act.
• Variation by Ministerial determination: Section
50 empowers the minister to make a
determination that replaces or excludes any
basic condition of employment in respect of –
• Any category or employees or employers;
• Any employer or employee in respect of whom
applications is made by the employer, the
registered employer's organization, the
employer and the registered employers
organization.
• A collective agreement, other than an agreement contemplated in subsection
(1), may replace or exclude a basic condition of employment, to the extent
permitted by this Act or a sectoral determination.
• An employer and an employee may agree to replace or exclude a basic
condition of employment to the extent permitted by this Act or a sectoral
determination
• Minister may make a determination to replace or exclude any basic condition of
employment provided for in this Act
• An example of a variation by the minister relates to hours of work. In terms of
MD employees earning in excess of R 193 805 per annum are excluded from s9
which sets the maximum ordinary hours of work and s 10 which places limits on
overtime.
• Diferent to a sectoral determination – in sectors such as Engineering, taxi, civil
construction, Retail and wholesale, hospitality.
QUESTIONS????????????????