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
Fortnite, Wimbeldon And Tour De France
By Donvay Wegierski, Director Fanatic or not we will all be familiar with the above, each comprising sport in its [...]
Workplace Bullying: Remedies And Recourse In South African Law
By Bradley Workman-Davies, Director South African labour law has developed a rich body of case law since the Labour Relations [...]
Retrenchment Remedies – Getting The Process Back On Track
By Bradley Workman-Davies, Director and Mishkah Abdool Sattar, Candidate Attorney Retrenchments in South African law are regulated in terms of [...]
When Can Taxpayers Rely On Prescription Of Assessments?
By Ernest Mazansky, Director, Head of Tax Practice, Werksmans Tax (Pty) Ltd INTRODUCTION As is widely known, the general principle [...]
Does Validity Of A Contract Trump All Considerations In Review Of Agreements With Organs Of State?
By Jennifer Smit, Director Recently, Theron J handed down a judgment in the Buffalo City Metropolitan Municipality / Asla Construction [...]
The Legal Position Concerning Strict Compliance With The Stipulations In A Demand Guarantee
By Boitumelo Rammala, Associate and Dimakatso Mogafe, Candidate Attorney Reviewed By Jennifer Smit, Director Sasol Oil (Pty) Ltd ("Sasol") and [...]
