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 importance of a complete record of the arbitration proceedings
Lessons from Minister of Police v Police and Prisons Civil Rights Union (POPCRU) Obo Senti and Others (PA15/2021) [2023] ZALAC [...]
The Electricity Regulation Amendment Bill: A New Era for the Energy Sector?
The Electricity Regulation Amendment Bill [B 23 - 2023] (the Bill), has been published for comment and aims to introduce [...]
The in duplum rule: some insights
and Lwazi-Lwandile Simelane, Candidate Attorney Interest stops running when the unpaid interest equals the amount of the outstanding capital claim. [...]
The importance of a legal due diligence when acquiring a commercial farm in South Africa
A common transaction structure that is utilised by a purchaser to acquire a commercial farm in South Africa is to [...]
Ground-breaking European Union legislation limits dominance of major tech corporations
and Chiara Ferri, Candidate Attorney The Digital Markets Act ("DMA") is a piece of EU legislation aimed at targeting enormous [...]
AI in farming
and Chiara Ferri, Candidate Attorney Adding value one industry at a time, artificial intelligence ("AI") is proving to be a [...]