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
No enquiry before being dismissed – no problem
By Bradley Workman-Davies, DirectorLabour relations and the fairness standards for dismissal of an employee in South Africa have long been [...]
Exchange control relaxation: removal of loop
By Ernest Mazansky, Head of Tax Practice, Werksmans Attorneys On 4 January 2021 the Financial Surveillance Department of the South [...]
Reduced work time and illness benefit
by Jacques van Wyk, Director; Andre van Heerden, Senior Associate; and Thabisa Yantolo, Candidate Attorney The Department of Employment and [...]
Fixed term faux pas – how not to employ someone for a limited period of time
By Bradley Workman-Davies, Director Fixed term contracts of employment are allowable and acceptable in South African employment law, and are [...]
Crypto assets – a new financial product?
By Natalie Scott, Director; and Kyra South, Associate On 20 November 2020, the Financial Sector Conduct Authority ("FSCA") published a draft Declaration [...]
Covid-19 Beach Closures
by Shayne Krige, Director and Co-Head of Investment Funds & Private Equity Practice We have been inundated with queries from [...]
