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
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 [...]
IP & LEGACY
By Donvay Wegierski, Director NELSON MANDELA INTERNATIONAL DAY 18 July is Nelson Mandela International Day in remembrance and in [...]
BBBEE Commission Makes Findings Against Eskom
By Pieter Steyn, Director On 11 June 2019, the Broad‑Based Black Economic Empowerment (BBBEE) Commission published its findings and recommendations following [...]
Significant Changes Made To The Codes Of Good Practice On Broad-based Black Economic Empowerment
By Pieter Steyn, Director On 31 May 2019, the Minister of Trade and Industry replaced the existing Codes of Good Practice [...]
An employer’s prerogative to employ the candidate it deems best
By Jacques van Wyk, Director and Michiel Heyns, Senior Associate In the arbitration between the National Union of Mineworkers obo [...]
FALSE ALLEGATIONS OF RACISM MAY BE GROUNDS FOR DISMISSAL
By Jacques van Wyk, Director; Andre van Heerden, Senior Associate and Chelsea Roux, Candidate Attorney ISSUE Whether an employee [...]
