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
Does a gross failure in procedure expose an employer to the risk of maximum permissible compensation even if there is a justification for the dismissal?
By Jacques van Wyk, Director and Yusha Davidson, Candidate Attorney ISSUE If a retrenchment was unavoidable, can the employer skimp [...]
#metooza – sexual harassment in the workplace in south africa
By Bradley Workman-Davies, Director and Megan Livingstone, Candidate Attorne Recently, and on an ongoing basis, revelations of sexual harassment in [...]
Do restraint of trade agreements survive a transfer of a business as a going concern?
By Jacques van Wyk, Director and Yusha Davidson, Candidate Attorney ISSUE Are restraint of trade agreements transferred in terms of [...]
Reviewing an arbitrator’s misconception of the nature of an enquiry
By Jacques van Wyk, Director and Yusha Davidson, Candidate Attorney ISSUE Whether, by finding that the employer should have followed [...]
Is an unfair dismissal claim subject to prescription? If so, does the referral of a dispute to the ccma for conciliation interrupt the running of prescription?
By Jacques van Wyk, Director and Yusha Davidson, Candidate Attorney ISSUE Are claims for unfair dismissal subject to the Prescription [...]
The definition of “worker” in the national minimum wage bill
By: Jacques van Wyk, Director and Andre Van Heerden, Senior Associate and Yusha Davidson, Candidate Attorney The Department of Labour has [...]
