The Latest Minimum Wage Increases for - …

1 INVICTUS GROUP NEWSLETTER JANUARY 2018 2016 HEAD OFFICE - JHB 2ND Floor, Pin Oak House, Ballyoaks Office Park, 35 Ballyclare Drive, Bryanston, Johannesburg, 2191 T: 0861 737 263 F: 0861 737 239 CAPE TOWN BRANCH 68 Centurion, 13 Kasteelberg Road, The Crest, Durbanville, 7550 T: 082 569-0803 PRETORIA BRANCH 45 Giraffe Crescent Centurion, Pretoria T: 071 604 9112 DURBAN BRANCH 135 BribleRoad,Forrest Hill, Kloof Durban, 3610 T: 079 504 129 RUSTENBURG BRANCH 82A Cuckoo Avenue, Ext 8 T: 082 467 5739 us on facebook (search for Invictus Johannesburg) NEWSLETTER or visit us at POSTAL ADDRESS PO Box 1127, Cresta, 2118 Reg. No: 2001/006142/07 VAT No: 434019860 The Latest Minimum wage Increases for 2018 Domestic Workers Effective 01 January 2018 The Department of Labour implemented a 5% annual wage increase for Domestic Workers. Domestic Workers in Area A who work 27 ordinary hours a week or more will now earn per hour.

2 Domestic Workers in Area A who work less than 27 ordinary hours a week will now earn per hour. This Determination came into operation on the 01st of January 2018 and is effective until the 30th of November 2018. Employers are urged to revise the hourly rate to be compliant with the new Determination. Follow this link to the Government Gazette No. 41326 for the full Domestic wage Schedule specifying the wage for Areas A and B Click on Domestic Workers and Contract Cleaning: 01 January 2018 to 30 November 2018 - Contract Cleaning Workers Effective 01 January 2018 - The Sectoral Determination 1: Contract Cleaning Sector has been amended and Employers will now have to pay a Contract Cleaning Worker at least the Minimum hourly wage as set out below: Area A (01/01/2018 to 30/11/2018); Area B (01/01/2018 to 28/02/2018); (01/03/2018 to 30/11/2018); and Area C (01/01/2018 to 30/11/2018).

3 Follow this link for the full Contract Cleaning Sector Wages Table specifying Areas A, B and C- - Wholesale & Retail Sector Effective 01 February 2018 - There is a set increase for wages of 5% and in respect of the Metropolitan and Local Municipality as per the Wholesale & Retail Sectoral Determination. Employers need to take note that this increase will be applicable from the 01st of February 2018 until the 31st of January 2019. The new Minimum wages will be applicable to various categories of workers such as various categories of workers such as merchandisers, forklift operators, cashiers, general assistants, drivers, clerks, security guards, supervisors, displayers, trainee managers, assistant managers and managers. To view the Minimum wage table in respect of the various categories, please follow the link below: - Farm & Forestry Workers Effective 01 March 2018 - All employers in the Farm and Forestry Sector should take note that the wages for employees are set to increase by as from the 01st of March 2018.

4 The Minimum hourly rate will increase from to per hour; from to daily, from to weekly and from to monthly. Employers in this section is also cautioned to be on the lookout as to whether the National Minimum wage Bill will be passed as the Minimum wage for Farm Workers will then be increased to per hour effective from the 01st of May 2018. For more information regarding the National Minimum wage Bill and how it will affect you if passed, please follow the following link: Are Employers able to Recover Overpaid Remunerations? - Has it ever happened that you accidently overpaid some or all of your employees as a result of a calculation error and did not know what to do? - Employees react stating that it was not an error on their side and argue why they must pay for a mistake made by the company. When addressing this problem, Section 34 of the Basic Conditions of Employment must be taken into account Deductions and other acts concerning remuneration.

5 Section 34 (1)(a) and (b) clearly states that a deduction can only be made if the employee agrees to the deduction in writing or the deduction is permitted by law, collective agreement court order or arbitration award. Luckily for the employer, the legislature also included Section 34 (5) (a) and (b). Section 34 (5) allows the employer to make a deduction from an employee s remuneration as a result of overpayment resulting from an error in calculating the employee s remuneration. The next question that now arises is, if section 34 (5) permits an employer to make a deduction, is written consent still required from the employee to make the deduction? This question was answered in the matter of Sekhute and Others v Ekurhuleni Housing Company SOC (J1862/17) [2017] ZALCJHB 318. In this matter, the employer erroneously added the increased contributions to the pension and medical aid scheme to the employees remuneration and paid this over to the employees.

6 The employer requested a deduction from the employees, however, the employees alleged that the deductions were unlawful as it was contrary to the employer s HR policy. The court found that the employer made a genuine mistake when calculating the remuneration and thus the employer could proceed with the deductions. To answer the question, should you as the employer accidently overpay your employees, you can make a deduction without the employee s consent. Can External Expert s Chair Disciplinary Inquiries - Will employers be able to make use of external experts to chair their disciplinary inquiries if their disciplinary code only makes provision for internal chairpersons?? - The answer is YES! If the employer s disciplinary code only makes provision for an internal chairperson, such as a manager which would be acceptable to both parties, it is not obligatory and the employer is not bound by it.

7 The code is merely a guideline and by appointing an external expert to chair a disciplinary inquiry would not be prejudicial to either the employer or the employee but it would rather serve the interests of both sides. An external expert chairing an inquiry is not representing the employer or the employee. The external expert chairing the inquiry is there to gather the facts provided by both parties and to make a fair and objective decision. An employer is entitled to appoint someone outside their organization, notwithstanding what their disciplinary code states, with the appropriate expertise to chair an inquiry. Having an external expert chair a disciplinary inquiry is more beneficial for an employer than making use of an internal employee or manager as the chairperson. The reason for this is that an external expert: Is skilled and has experience in labour law; Less prone to influenced by the parties; Is unbiased as he/she has no relationship with either party; Is in the position to make a fair decision, following a fair procedure.

8 How can Invictus assist in this regard? We have our own team of Industrial Relations Specialists who will come out to your offices to chair yours disciplinary inquiries. For more information, simply contact us on 0861 737 263 and ask to speak to one of the consultants.