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 validity of automatic termination clauses in contracts of employment
ISSUE(S) Whether the employee was unfairly dismissed after his appointment letter was automatically terminated because of a provision stating [...]
Holding onto land: the regulation of Agricultural Land Holdings Bill
INTRODUCTION During the 2016 State of the Nation Address, the president of the Republic of South Africa first announced [...]
And now for something completely different (or not?)
INTRODUCTION With effect from 1 June 2017 the Medicines and Related Substances Amendment Act No. 72 of 2008 ("the [...]
Director, Nastascha Harduth, becomes the first female fellow of INSOL international in SA
The on-going global financial crisis, recent confirmation by STATSSA that South Africa is in a technical recession and the globalization [...]
Minister issues new Code of Good Practice on the preparations and implementation of the Employment Equity plan
On 12 May 2017 notice was given, by way of Government Gazette, in accordance with section 54 of the Employment [...]
It’s not me, it’s you: incompatibility as a ground for dismissal
"An employer has the prerogative to set reasonable standards pertaining to the harmonious interpersonal relationships in the workplace" – words [...]
