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Employees excluded from some labour legislation provisions
05 March 2023,
Roy Monk
319
The annual earnings threshold (“the threshold”) determined from time to time by the Minister of Employment and Labour (“the Minister”) has been increased from R224 080.48 to R241 110.59 as from 1 March 2023. The effect is that some of the provisions of our labour laws do not apply to employees who earn more than the threshold (“excluded employees).
“Annual earnings threshold” means an employee’s annual remuneration before the deduction of income tax, medical aid and pension fund contributions, but excludes any contribution to such items by the employer.
As provisions of the Basic Conditions of Employment Act, 1997 (“BCEA”) which regulate ordinary hours of work, overtime, compressed working weeks, averaging of hours of work, meal intervals, daily and weekly rest periods, Sunday pay, pay for night work and pay for work on public holidays do not apply to excluded employees.
Likewise, the provisions of the Labour Relations Act, 1995 (“LRA”) which deem employees engaged by a temporary employment service or labour broker, who are not performing a temporary service, to be employees of the person/entity where the services are rendered, do not apply to excluded employees. Moreover, the provisions of the LRA service which provide that fixed-term contract employees are regarded as permanent employees after three months in the absence of justifiable reasons for fixing the term of the contract), do not apply to excluded employees.
The Employment Equity Act, 1998 (“EEA”) provisions which allow an employee who has a dispute concerning unfair discrimination to refer the dispute to the CCMA for arbitration. However, where the complaint is based on the grounds of sexual harassment, the parties must all agree to CCMA arbitration, failing which the dispute must be referred to the Labour Court for adjudication. These provisions are not available to excluded employees
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