Legal updates and opinions
News / News
Increase to BCEA earnings threshold
by Jacques van Wyk, Director; Andre van Heerden, Senior Associate; and Thabisa Yantolo, Candidate Attorney
On 8 February 2021 the Minister of Employment and Labour, Thembelani Waltermade Nxesi, published a Government Gazette[1] providing for the increase of the earnings threshold, as provided for in the Basic Conditions of Employment Act 75 of 1997 (“BCEA”). The new earnings threshold will be R211,596.30 per annum with effect of 1 March 2021.
‘Earnings’ is defined as “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 allowances received, achievement awards and payments for overtime worked shall not be regarded as remuneration for the purpose of this notice.”
Employees who earn in excess of the threshold are excluded from certain provisions of the BCEA such as those relating to ordinary hours of work (section 9), overtime (section 10), compressed working weeks (section 11), averaging hours of work (section 12), meal intervals (section 14), daily and weekly rest periods (section 15), pay for work on Sundays (section 16), pay for night work (section 17(2)) and pay for public holidays where the employee works on a day he/she would not ordinarily work (section 18(3)).
[1] Gazette Number: 44137. Notice No: 77.
Latest News
Impact of Covid-19 on merger conditions
Merger conditions There is no doubt that the Covid-19 pandemic has had, and is continuing to have, a severe impact [...]
Competition Commission’s Report on the effects of the Covid-19 Block Exemption for the Retail Property Sector, 2020
by Dominique Arteiro, Director Background On 23 April 2021, the Competition Commission ("Commission") published a notice in the Government Gazette in [...]
JSE efforts to reduce red tape in Section 9 of the Johannesburg Stock Exchange Listing Requirements
The Johannesburg Stock Exchange Consultation Paper From the outside, it is worth acknowledging that the JSE Limited (the "JSE") or [...]
Well-known trade marks recognised in Tanzania
By Donvay Wegierski, Director On 4 February 2021 judgement was handed down by the High Court of Tanzania, Dar Es [...]
Resignation or dismissal?
The employment relationship involves two parties - the employer and the employee - and accordingly there are three possible ways [...]
A bank’s right to set-off and their duties towards third parties
by Tracy-Lee Janse van Rensburg, Director and Malachizodok Mpolokeng, Candidate Attorney It is well known that banks play a critical [...]
