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
Breaking set stone – exceptional circumstances and the variation of Competition orders
by Ahmore Burger-Smidt, Director and Head of Data Privacy and Cybercrime Practice and member of the Competition Law Practice, and [...]
The Constitutional Court has tightened the noose on the doctrine of common purpose.
by Sandile July, Director, Sandile Tom, Director and, Benedict Ngobeni, Candidate Attorney Doctrine of common purpose The principles underpinning the [...]
Contractors, copyright and computer programs – what should business owners know?
by Danelle Plaatjies, and, Monique le Roux, Candidate Attorneys. Reviewed by, Jacques van Wyk, Director and Janine Hollesen, Head of [...]
Keep Calm – We are Coming to the Rescue !!
Business rescue was introduced into our law with the enactment of Chapter 6 of the Companies Act 71 of 2008 [...]
Changes to facilitate joint audits by SARS in the pipeline
by Nicholas Fairbairn, Associate and, Kelly Sease, Candidate Attorney (Reviewed by Doelie Lessing) Cross-border transactions As a result of globalisation [...]
To 2030 and beyond: Can embracing AI technologies help South Africa reach the National Development Plan’s visions for the ICT sector?
Once upon a time, the National Planning Commission published the National Development Plan and set the following long term goals [...]
