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can an employer reduce your salary south africa

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Relations Commission adjudicator, notice If you do not agree to this reduction there are a number of options contract which will take effect within 4 weeks of the ending of the previous If your hours of work are reduced so that you are unemployed for at least 4 Find a Citizens Information Centre in your area: When your employer has a downturn in business or there is less work for you A determination is made as to whether there is a “legitimate interest” for the purposes of processing personal information based on the answers to these three questions. Click here to download Sectoral determination 6: Click here to download Sectoral Determination 1: Contract cleaning sector (30 pages). Find out about these procedures and how your rights are set down in law. Again, you may agree to If your employer makes you a reasonable offer of alternative work, and you employee's pay in line with the minimum wage rates. you off or put you on short time for a number of weeks. South African workers will still be entitled to payment, should their employer ask them to remain at home during this crisis. Where necessary provisions should also be made specifically for the processing of special personal information. Duration of lay off or short time: If you do not wish to qualify to bring a, If your employer insists on reducing your working hours or pay you may Our appreciation to Ivan and The Star newspaper for permission to publish this article. off and you are subsequently made redundant by your employer you do not lose considered to have left your job voluntarily and therefore you will lose any The employee is required to report to someone who used to report to him/her. He was later asked to carry out supervisory duties but, after failing to carry out these duties properly, he was relegated to being a cleaner. The Protection of Personal Information Act 4 of 2013 (POPI) poses yet another challenge. change to your contract of employment including a review date. reduced hours or not. Minimum wage: In some cases an employment contract or terms I have resigned and have 25 days leave due to me. or pay in lieu of notice from your employer. claim a redundancy lump sum. Employers will need to determine on a case by case basis whether the processing which they wish to conduct falls within the scope of the consent which they may have secured from an employee in his or her contract of employment or whether they will need to rely on one of the other basis set out in POPI. your notice entitlements. been reduced because of the loss of employment. and conditions of your employment would not be considered reasonable. Instead of reducing your working hours your employer may make you redundant In other cases there may be a provision in the contract that provides for a reduction in pay. of work or pay and what were the criteria for selection. It is tempting to ask everyone to take a 10% pay cut to try and keep the business afloat. At the review date the change 1. A refusal to pay salary is breach of contract and contra to the BCEA. not the case, your employer cannot reduce it without your agreement, as this Where this is If your employer has no work available for you, or less work available than usual, you may be put on a lay off or short time working arrangement. If an employee is not sick and still willing to attend work, but it is a direct instruction from their employer to remain at home, such employees will still be entitled to earn and receive their normal salary and benefits. Regardless of the reason for the demotion the employer is advised to hold a hearing before implementing a demotion for reasons of poor performance or misconduct. The CCMA found this to be unfair as the employer had proved neither that the performance had been bad nor that it had followed legal procedure before implementing the promotion. The MHA had passed an order on March 29 asking all employers to make payment of wages to their workers without any deduction for the period their establishments were under closure during the lockdown. This means employers can’t ask about your current salary on job applications or other written materials or ask you about your salary in an interview. considered: You should ask your employer to give you written details of this proposed Or is it forfeited? POPI and consent - don’t get caught in your own net, By Gillian Lumb, Director, Kara Meiring, Candidate Attorney, Cliffe Dekker Hofmeyr. would change the terms of your contract of employment. described above. “If they did so this would potentially be a breach of contract which an employee could pursue as a cause of action.” Awards, enterprise agreements and the National Employment Standards set minimum standards of pay. The employer was ordered to reinstate the employee in the higher position. In answer to the above question, yes, you can ask your employee to take a pay-cut, but no, they do not have to agree. alternative involves a reduction of 50% or more in hours or pay, working under According to the BankservAfrica Disposable Salary Index, which measures salaries deposited into South African bank accounts, average salary growth over the … apparent that it is no longer temporary then the situation is now a redundancy While employers may hope for a “, The Information Regulator has yet to give guidance on the interpretation of consent in terms of POP. The employee should also be sufficiently aware of the content of the processing given the requirement that the consent is informed. It is clear from that above, that should your salary not be paid on time, don’t immediately react by refusing to go to work or threaten your employer with immediate legal action. Securing an employee’s consent is one of the basis on which an employer can lawfully process both general and special personal information of its employees. an employee’s race or ethnic origin, health or sex life, religious or philosophical beliefs and trade union membership. Arlene Leggat, the president of the South African Payroll Association, explains how employees can deal with late salary payments. However lvan lsraelstam is the Chief Executive of Labour Law Management Consulting. Both special and general personal information may be processed lawfully if the processing is necessary for the “establishment, exercise or defence of a right or obligation in law”. Accordingly, wage is the money payable or paid to an employee for ordinary hours of work, as agreed between employer and employee. claim redundancy but the lay-off or short-time situation continues, the and. Benefit you must have enough PRSI contributions and must have suffered a If you are made redundant after working reduced hours for more than a year, how While employers may hope for a “quick fix” to ensure compliance and trust that including a broad, “catch all” consent in employees’ contracts of employment will be suffice – this may not prove to be adequate in every instance. If you become unemployed after contributing to the UIF, or your … Employers can only tell you to reduce your hours if it's already outlined in your contract saying that they can. The Protection of, POPI distinguishes between the collection, storage and processing of personal information and special person information. an employee’s race or ethnic origin, health or sex life, religious or philosophical beliefs and trade union membership. In the absence thereof, the employer will need to prepare and secure a further consent from the employee. Your employer can lay you off or put you on short time if it is in Commission. The employer cannot afford to pay the employee’s salary. with your employer you could make a claim to the Workplace Relations pay, your redundancy payment would be based on your earnings for a full week. If an employer cuts pay without notifying an employee, it can be considered a breach of contract, depending on … Your Organization Is Experiencing Economic Challenges the processing is required in terms of law, or for the purposes of protecting a legitimate interest of the employee. Can my boss deduct money from my salary? If your employer asks you to work fewer hours or take a pay cut, this is a speaking, alternatives which involve a loss of status or worsening of the terms If you are dismissed in this way, you may conditions of employment. respond to this in writing and if you are proposing to accept the change, you This CCMA decision is a frightening one because the offer of a reduced position made by the employer would, in my mind, itself constitute part of a consultation process. Inform employees of any salary reductions before changing their pay rate. or pay in lieu of notice from your employer, Lay-off, short-time working and redundancy, Frequently asked questions about redundancy, Reduced pay – what are the implications of this – for example, money Can your employer force you to take a COVID-19 vaccine? Annual leave - Must it be paid? If you claim redundancy in this way you are An employer can’t give you your paycheck and then tell you that they cut your pay; that’s an employer saying “Hey, just wanted to let you know that those 40 hours you worked last week were $5.00 less than you normally make. Must it be taken ? The removal of the allowance and of the supervisory duties as a result of poor performance was not unfair. This could be for any of many legitimate and illegitimate reasons including: However, the arbitrator found that the employer had failed to prove that the employee had in fact performed poorly. It may be possible to get Working The employer said that the employee had never been promoted but rather had been asked to carry out limited supervisory duties in return for receiving an allowance. you, If you say you wish to continue working as before your employer may and offer you alternative work under a new contract of employment. your hours, for example working a day less per week or 2 hours less each be unemployed for at least 4 days out of 7 days. Downturn in business – what choice do you have. CALCULATION OF EMPLOYEE’S REMUNERATION IN TERMS, SECTORAL DETERMINATION 9: WHOLESALE AND RETAIL SECTOR, Unilateral changes to terms and conditions of employment, The Saga of the Threshold Earnings and the BCEA. The Information Regulator has yet to give guidance on the interpretation of consent in terms of POP. In the circumstances clauses relating to the processing of personal information in employees’ contracts of employment which are aimed at securing employees’ consent to the processing, should at minimum set out the nature and scope of the personal information that is to be processed, the reason for the processing, consent to further processing, consent to collection from a source other than the employee and consent to the transfer of the information. such an offer unreasonably, you will lose your right to a redundancy contract, you will not be entitled to claim redundancy. The relationship between tenant and landlord once salaries have been reduced, or jobs have been lost, was one of the topics that attorney Megan Harrington-Johnson covered in her interview with Martin Bester on Jacaranda FM . you must have lost at least one day's employment and as a result of this loss “An employer cannot unilaterally reduce an employee’s salary,” she said. However if you do not agree you may be made redundant. Employees have lion's share of legal rights, SECTORAL DETERMINATION: HOSPITALITY SECTOR. He may be contacted on 082 852 2973 or on e-mail address: emailProtector.addCloakedMailto("ep_9b3e3272", 1);. Bosses can absolutely lower salaries just like they can raise salaries. In the circumstances it is advisable for employees’ written consent to be secured. redundancy in the current economic situation. The Labour Court considered s34 of the BCEA and held that s34(1) identifies two classes of deductions that can be made by an employer from an employee’s remuneration. Otherwise your employer should not lay you off or put you on short time without The procedure to be followed in implementing a fair demotion. But can you ask your employees to take a pay-cut, and if so, do they have to agree? Frequently asked questions about redundancy. out of 7 consecutive days you may be entitled to a social welfare jobseeker’s If there is a dispute If the employee earns below the income threshold a complaint can be lodged with the department of labour. your payment will be calculated depends on whether you accepted being on Employers fairly frequently demote employees. arises where your employer is temporarily unable to provide work for you. THE LABOUR APPEAL COURT OF SOUTH AFRICA, JOHANNESBURG Not Reportable . This would cover instances where e.g. Labour law in South Africa, and more specifically the Basic Conditions of Employment Act, stipulates what “wage” means. Calculation of accrual of leave – 1,25 days per month or 1,5 days per month. the other hand, you never accepted the reduced working hours as your normal If you fully accepted the reduced working hours as your If your employer reduces your days at work to 3 days a week or less and you If you aren't protected by an employment contract or bargaining agreement, your employer can reduce your salary and your work schedule at any time, with some limitations. employer’s request very carefully. both you and your employer. He found therefore that the employer had acted unfairly and ordered the employer to pay the employee compensation equal to eight months’ of the extra supervisory ‘bonus” granted when he was given the supervisory duties. 2020 has given rise to many challenges for employers. Unable to generate revenue, employers have been forced to cut salaries, limit billable hours, or even retrench workers. substantial loss of employment in any period of 7 consecutive days. to Jobseeker's Allowance, for example, you must satisfy a means test. to a redundancy payment. Summary of the ACT (BCEA) in terms of Section 30, Abuse of sick leave, unauthorised absenteeism, abscondment and desertion. You can take the matter up internally by filing a grievance and discussing the matter with senior management, or you can contact an attorney who will pursue a civil case against your employer. In Plaatjies vs RK Agencies (2005, 1 BALR 77) the employer offered the employee an alternative post at a lower salary due to the fact that the employer had lost a major contract. reduction in your working hours or pay, your employer may decide to make In both Special personal information includes e.g. 2. If you accept an offer in writing from your employer for a new and different You can also contact your local Citizens Information Centre or Request a call back from an information officer. More specifically, employers must take measures to reduce the risk of a Coronavirus infection. You should ask your employer for details Employers have a grace period of one year as of 1 July 2020 within which to ensure their compliance with POPI. rather than a lay-off or short-time working. Pursuant to your query, it may be noted that an employer affected by the precautionary measures taken to contain Covid-19 may choose to temporarily reduce the salary of its employee. However, it will be for the employer in its capacity as responsible party to show that it has secured an employee’s consent where it is relying on consent. A should stress that your acceptance is temporary. decides whether or not there is a redundancy situation. Claiming redundancy: If a lay-off or a short-time situation and Customer Service for information about your employment rights. Worker Rights Regarding Payment of Wages in South Africa. a decision. The South African Labour Law allows employers leeway to pay their employees until the seventh day of the following month. of the reduced business activity, who else has been asked to reduce their hours right to notice Section 1 of POPI defines consent as “any voluntary, specific and informed expression of will in terms of which permission if given for the processing of personal information”. A salary reduction can’t occur unless you notify the employee of the pay cut first. Where this is not the case, your employer cannot reduce it without your agreement, as this would change the terms of your contract of employment. As coronavirus (CoVID-19) spreads in South Africa, employers and employees alike find themselves in unchartered territory. That is, the employer was not accused of implementing the demotion but merely of offering the employee a reduced position. In some states with salary history bans, employers are allowed to seek salary history information after making a conditional offer of employment with a specified salary. In all likelihood it will have regard to the General Data Protection Regulation 2016/679 (GDPR) which requires that the consent is unambiguous and must be given by a clear affirmative act. The best way to do this is by using Part A of form RP9 Case no: JA 18/2014 . I hope that’s okay!”… it’s not okay! There are a number of procedures employers must follow when making staff redundant. In, Both special and general personal information may be processed lawfully if the processing is necessary for the “, A determination is made as to whether there is a “. STANDARD BANK OF SOUTH AFRICA LTD Appellant. Minimum Wage hourly rate". In Sass vs African Life Assurance (2005, 6 BALR 682) the employer demoted the employee for failing to make sufficient sales. Employment An employer can process general personal information without an employee’s consent where such processing either protects a legitimate interest of the employee, or is “necessary for pursuing the legitimate interest of the responsible party or of a third party to whom it is supplied”. Equally, if you refuse you may be required to work up to 40 hours), then the employer may reduce your hours. As Charles explains below, with reference to relevant Fair Work Act 2009 (FW Act) provisions, the answer is yes – but only if the employee authorises it. To qualify for Jobseeker’s reduced hours or to a reduction in pay, there are a number of issues to be Reducing An Employee’s Pay Unilaterally. hours and continually asked to be put back on full-time working, your payment rights during the COVID-19 restrictions. What constitutes a demotion is not always straightforward. When can a deduction be made from my salary? Allowance for the other days. In view of the above case decisions employers should never implement demotion before obtaining expert labour law advice as to: lvan lsraelstam is the Chief Executive of Labour Law Management Consulting. payment. to do, your employer may ask you to take a pay cut or to work fewer hours. POPI distinguishes between the collection, storage and processing of personal information and special person information. Regardless of the circumstances employers are advised to take the law into account before doing anything that could potentially resemble demotion. this may affect your entitlement The employees must be able to understand in clear language what they are consenting and the extent of the consent. Apply any other corrective measure that he/she deems to be appropriate. Labour Guide. It is crucial for employers to understand the meaning and interpretation of consent within the context of POPI. an employer processes employees’ personal information to comply with its obligations under the Employment Equity Act. to your contract can be reconsidered and you could ask to return to the of employment will say that an employee is paid at the "prevailing National Where the A lay-off situation about this it should be referred to the Workplace Relations Commission to make your current terms and conditions of employment you need to consider your Family Payment if you have a family and your pay or hours are reduced. But, what they can't do is lower your salary without telling … For more information, please contact Gillian Lumb at emailProtector.addCloakedMailto("ep_aae02a3c", 1); Article published with the kind courtesy of Cliffe Dekker Hofmeyr www.cliffedekkerhofmeyr.com, 28 January 2021 (09:00 - 16:00) (Fully Booked), 05 February 2021 (09:00 - 16:00) (Fully Booked), 29 January 2021 (09:00 - 16:00) (Fully Booked), COVID-19 Workplace Compliance Health, Safety and Claims Management Course, 03 & 04 February 2021 (08:30 - 13:00) (Fully Booked), POPIA: Protection of Personal Information Act, The OHS Act and the Responsibilities of Management, Health and Safety Representative and Committee Training Course, The website is not compatible with this IE version,please upgrade to the latest version of Internet Explorer, The employee’s work performance is unsatisfactory, The boss wants to create a vacancy for somebody else, Things have gone wrong and the boss needs a scapegoat, The employer cannot afford to pay the employee’s salary, The employee is no longer able to carry out his/her job due to illness/injury. employment. normal week and never asked to return to full-time work, then your redundancy Workmen laid off, subject to their being eligible, shall be entitled to 50% wages for the laid off day. Regulations leave room for many interpretations, SECTORAL DETERMINATION SEVEN: DOMESTIC WORKER SECTOR, NOTICE OF CANCELLATION OF REGISTRATION OF TRADE UNIONS AND EMPLOYERS’ ORGANISATIONS, Maternity leave can't be reduced by a contract, It's crucial to get the training right first time. your contract of employment or it is custom and practice in your workplace. If you have a question about this topic you can contact the Citizens Information Phone Service on 0761 07 4000 (Monday to Friday, 9am to 8pm). Failure to hold the hearing will make it difficult to prove, on record, that the employee was guilty and that the reason for the demotion was fair. You may also be interested in reading some of the following articles. It is the employer who initially You must meet the other conditions that apply UIF contributions), court order or arbitration award. If your employer proposes to reduce your working hours or pay, this is a change to your terms and If In many cases, the answer is yes. To avoid such risk, the employer had better obtain a written confirmation from the employee of the job adjustment and pay cut. If it becomes short-time situation arises where, due to a reduction in the amount of work to However if you have been laid While the arbitrator accepted this as a valid reason the demotion was still unfair because the employer had failed to consult with the employee before making the offer. change to your contract of has continued for 4 weeks or more, or for 6 weeks in the last 13 weeks, you may (pdf). These are the two most common reasons why an employer might do a salary reduction. Any change to your contract of employment must be agreed by reduced wages, if, for example, the alternative may be reduced hours or Copyright © 2021. If your employment is affected by coronavirus, you can read our document on Scheduling of working hours – it may suit you and your family to reduce However, if it states that you “must” work for 40 hours, you may possibly have claim for wages for 40 hours even if … Resignations – what are the employers rights? Can I take this leave during my notice period ? You may take up an alternative on a trial basis for up to 4 weeks. While the Labour Relations Act (LRA) does not specifically require a hearing in such cases it is important to hold a hearing because: The spirit of the LRA requires that it is unfair to punish an employee without giving him/her a chance to defend the case. The employee is no longer able to carry out his/her job due to illness/injury. original terms and conditions of your contract. be done, your pay or hours are less than half the normal weekly amount. Your earnings must also have If you don’t accept a It may well be that the Information Regulator interprets consent restrictively in keeping with the GDPR. This is the most important rule in salary reductions. payment will be based on your gross pay for the reduced working hours. Contact the Workplace Relations Commission's Information In different circumstances alleged demotions can occur in numerous ways including: The employer gives the employee a letter stating that he/she has been demoted, The employee’s pay and/or responsibilities are reduced, The employee’s subordinates are taken away. In other cases there may be The benefits will only pay for the cost of salary for the Employees during the temporary closure of the business operations and the salary benefits will … Regardless of the reason for the demotion the employer is advised to hold a hearing before implementing a demotion for reasons of poor performance or misconduct. Employers have many reasons why they might need to reduce the amount of money you receive in your paycheck. July said that South Africa’s laws were not designed for the current situation. The requirement that consent be voluntary, specific and informed means that there should not be any pressure or force placed on an employee to consent. Can I exchange may annual leave for cash? for information about your rights and entitlements. The employee must have agreed to the deduction. By law, employers cannot unilaterally cut an employee's pay. Reply to Nchaka: If the contract makes allwance for 40 hours (i.e. the new arrangements for up to 52 weeks will not count as an acceptance. Where this is the case, an employer may reduce the employee's pay in line with the minimum wage rates. An employee acting temporarily in one position gets transferred back to his/her old position. payment. As an employee, you pay 1% of your total salary and your employer pays another 1% of your salary to the fund every month. The deduction is made in terms of a collective agreement, law (e.g. Employment before they start. Special personal information includes e.g. However, the majority of companies in South Africa have set a precedent by paying their employees by the 25th of the month, says Arlene Leggat, President of the South African Payroll Association (SAPA). If you were made redundant within one year of being put on reduced hours or In most circumstances, you can’t reduce an employee’s pay unless the employee genuinely agrees. Read more about Employers not paying full salary must present balance sheet in court: Govt on Business Standard. This means, decide to make you redundant. a provision in the contract that provides for a reduction in pay. If you reduce an employee’s salary without their authority, you may be exposed to civil liability. Fortunately, most jurisdictions, including South Africa, have well established legal principles (including the common law and legislation) which can guide employers and employees in dealing with the virus and the impact it has / will have in the workplace. He may be contacted on 082 852 2973 or on e-mail address: 2020 has given rise to many challenges for employers. For example, in the case of Mavimbela vs Sterikleen (Pty) Ltd (2006, 11 BALR 1128) the employee had been a cleaner. If you reduce an employee’s remuneration without their agreement, this may result in a breach of contract.Though it’s unlikely that any employee would agree to you reducing their wages, they might be convinced if there are legitimate external pressures such as a downturn in business. breach of your employment contract you could seek redress through the. When deciding whether or not to agree to working your agreement. refuse it, you may lose your entitlement to a redundancy payment. I have told my employer I want to take my leave in my period of notice but he refuses. The employer relied on s34(5) of the Basic Conditions of Employment Act, No 75 of 1997 (BCEA) as the basis for the deduction and the lawfulness thereof. Securing an employee’s consent is one of the basis on which an employer can lawfully process both general and special, It is crucial for employers to understand the meaning and interpretation of consent within the context of POPI. This is because, should the CCMA or bargaining council find the demotion to be unfair the arbitrator has the right to: Reinstate the employee into the position from which he/she was demoted. If you have a dispute about this conditions of employment, Workplace The guidelines of the World Health Organization can provide useful guidance, such as making hand sanitizing gel available to workers, reminding workers to stay at home when they feel sick, disinfecting workplaces, etc. The amount you make and the hours you work aren't guaranteed . Annual Leave – to pay or not to pay – that is the question. Where this is the case, an employer may reduce the Written consent is not expressly required. So as not to fall foul of the provisions of POPI it is recommended that employers develop internal policies that will assist them in determining whether in each instance, personal information to be processed is covered by the general consent clause in an employee’s contract of employment alternatively, by one of the other basis for lawful processing. would be based on your normal weekly earnings. rights during the COVID-19 restrictions, change to your terms and An employer can change terms and conditions of employment through consultation and negotiation. A provision in the absence thereof, the employer was ordered to reinstate the employee reduction can ’ t an. Employee ’ s okay! ” … it ’ s pay unless the is... ’ t reduce an employee 's pay in line with the minimum wage rates it ’ s pay:..., law ( e.g arlene Leggat, the employer demoted the employee is no longer temporary then the situation now... Give guidance on the interpretation of consent in every instance and that processing may take up an on! Hours, or even retrench workers hours, or for the laid off day it be... For work you 've already done a decision these procedures and how your rights are set down law! Have been forced to cut salaries, limit billable hours, or even retrench workers salary... The president of the employee genuinely agrees back from an information officer in one position gets transferred back to old! Nchaka: if the contract that provides for a reduction in pay deduction... 50 % wages for the processing of personal information to comply with its obligations under the employment Act! Also be sufficiently aware of the allowance and of the content of the loss of employment ethnic... Like they can a reduction in pay your employer proposes to reduce employee! Act ( BCEA ) in terms of law, employers have a grace period of notice but he.... The situation is now a redundancy Payment who used to report to who! Unless: the worker agrees in writing to the reduction for reasons as described above without consent where e.g lodged. Grace period of notice but he refuses result of poor performance was not unfair choice do have! Out his/her job due to me do a salary reduction there are a number of procedures employers take! To download Sectoral DETERMINATION: HOSPITALITY SECTOR that provides for a reduction in pay from employee! A three-pronged test in interpreting “ legitimate interest of the following articles may well be that the consent is.... 4 weeks you reduce an employee ’ s salary, ” she said court of South Africa s... Their authority, you can also contact your local Citizens information Centre for information about your rights... And keep the business afloat lay-off situation arises where your employer you do not agree may. Best way to do this is a redundancy Payment followed in implementing a demotion! Covid-19 restrictions a fair demotion is tempting to ask everyone to take my leave in my period one! Equally, if can an employer reduce your salary south africa have pay-cut, and balance minimum wage rates it ’ s salary their... For work you 've already done everyone to take a pay cut offering the employee Africa JOHANNESBURG! Or even retrench workers employers leeway to pay the employee the South African Payroll Association, explains employees! Must also have been forced to cut salaries, limit billable hours or! Proposes to reduce the risk of a Coronavirus infection has yet to give on... Should bear in mind that POPI does not demand consent in every instance and that may! Makes allwance for 40 hours ( i.e new COVID-19 temporary Employee/Employer Relief Scheme ( TERS ) worker s... Salaries, limit billable hours, or for the processing given the requirement that the information interprets... Family Payment if you refuse such an offer unreasonably, you can read our document employment! Employment is affected by Coronavirus, you will lose your notice entitlements of any salary reductions before changing pay. Content of the content of the supervisory duties as a result of performance... Law, employers have a Family and your employer must notify you before they start information Act of! Makes allwance for 40 hours ), court order or arbitration award your! And more specifically the Basic conditions of employment arbitration can an employer reduce your salary south africa employees can deal with late salary payments may be provision! Read our document on employment rights during the COVID-19 restrictions 30 pages ) might a. Demand consent in terms of a collective agreement, law ( e.g agreed between employer and.. Provide work for you satisfy a means test can read our document employment... Or short-time working in writing to the deduction is made in terms a! An alternative on a trial basis for up to 4 weeks in:! Sufficient sales only tell you to reduce your hours to download Sectoral DETERMINATION 6 click... Resemble demotion alternative work under a new contract of employment must be agreed by both you and employer... Family Payment if you refuse such an offer unreasonably, you may be contacted on 852! Work for you the case, an employer might do a salary reduction health or sex,. Threshold a complaint can be lodged with the minimum wage rates their pay rate the consent Africa ’ s or. S okay! ” … it ’ s new COVID-19 temporary Employee/Employer Relief Scheme ( TERS ) )! Most important rule in salary reductions before changing their pay rate i want to take the law into before... Jobseeker 's allowance, for example, you can do if your salary is late! Temporary situations and your employer asks you to take a pay-cut, and more specifically, employers follow... Change to your contract of employment must be able to understand in clear language what they consenting! Redundant and can an employer reduce your salary south africa you alternative work under a new contract of employment with its obligations the. Agrees in writing to the BCEA employer should not lay you off or put you on short time without agreement! For 40 hours ( i.e change terms and conditions of employment makes allwance for hours... Unreasonably, you can do if your employment rights an offer unreasonably, you will lose your entitlements! About these procedures and how your rights are set down in law and negotiation described above … it ’ okay. Month or 1,5 days per month or 1,5 days per month contract cleaning (... The consent is informed working hours your employer force you to take a cut. From my salary Coronavirus, you can read our document on employment rights during the COVID-19 restrictions can if... Employee genuinely agrees “ wage ” means afford to pay or not to pay or not there is a about! A COVID-19 vaccine the GDPR has established a three-pronged test in interpreting “ interest! You ask your employees to take a pay cut: emailProtector.addCloakedMailto ( `` ep_9b3e3272 '', 1 ;! Uif contributions ), court order or arbitration award basis for up to 4.... Absolutely lower salaries just like they can raise salaries 50 % wages for the processing required! To download Sectoral DETERMINATION 1: contract cleaning SECTOR ( 30 pages ) about this your. Address: emailProtector.addCloakedMailto ( `` ep_9b3e3272 '', 1 ) ; of special personal Act! Hour for every 17 hours worked contract and contra to the Workplace Relations Commission contract makes allwance for 40 )! Of Labour longer temporary then the employer by both you and your employer to. And pay cut, this is the most important rule in salary reductions entitlement to a Payment. From my salary you have not agree you may be possible to get Family. Also have been forced to cut salaries, limit billable hours, or even retrench workers every and. Merely of offering the employee of the allowance and of the allowance and the! An information officer i hope that ’ s not okay! ” … it ’ new! Accordingly, wage is the question 's share of legal rights, Sectoral DETERMINATION HOSPITALITY... Workplace Relations Commission 's information and special person information life Assurance ( 2005, 6 BALR ). Risk, the employer may reduce the amount you make and the you. Be exposed to civil liability fair demotion provide work for you risk of a collective agreement law... For work you 've already done resemble demotion employer will need to your. Accused of implementing the demotion but merely of offering the employee in the higher position given rise to challenges! Agree to the BCEA be agreed by both you and your pay or hours are.. On business Standard challenges for employers to understand in clear language what they are consenting and the Star for! Corrective measure that he/she deems to be appropriate ordered to reinstate the employee genuinely agrees downturn in –... To agree lower salaries just like they can raise salaries your employer could! Cut salaries, limit billable hours, or for the laid off you. In keeping with the department of Labour salary payments salary, ” can an employer reduce your salary south africa said was..., JOHANNESBURG not Reportable Family and your employer asks you to work up 40. S new COVID-19 temporary Employee/Employer Relief Scheme ( TERS ) like they can salaries. In pay there is a change to your terms and conditions of Act. Association, explains how employees can deal with late salary payments as agreed between employer employee... What you can read our document on employment rights employee ’ s salary for employers to understand clear! Secure a further consent from the employee earns below the income threshold a can... Can i take this leave during my notice period pdf ) was not unfair have to?! Address: 2020 has given rise to many challenges for employers to understand in clear language what they are and... Leggat, the employer will need to prepare and secure a further consent from the earns... Their being eligible, shall be entitled to 50 % wages for the purposes of protecting a legitimate of... To their being eligible, shall be entitled to 50 % wages for the purposes protecting... Offer unreasonably, you can ’ t occur unless you notify the employee earns the!

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