Protecting vulnerabilities of workers
• Additional employees have been integrated into the workforce protection threshold
TRANSPARENT COMMUNICATION WITH EMPLOYEES IS ESSENTIAL TO CLARIFY CHANGES IN EMPLOYMENT CONDITIONS
In the global economic landscape, earnings levels have emerged as a critical issue. As social partners wrestle with escalating Gini coefficient inequalities in numerous jurisdictions, including SA, the spotlight is on income disparities and protections for vulnerable workers.
The introduction of new legislation, such as the Companies Amendment Bill, mandates the disclosure of earnings for the top 5% and the lowest 5% of earners. This transparency is a step towards addressing the vulnerabilities of workers, particularly those earning at or near the minimum wage.
To supplement this, basic employment conditions that govern working hours, premium payments for Sundays, public holidays, and night work are being revised annually.
These work arrangements can have adverse effects on the health and wellbeing of employees. These regulations are regularly reviewed and updated to ensure that as wages rise, the thresholds that govern additional protections are also adjusted accordingly.
In SA, an increased number of workers will come under the umbrella of basic employment protections after a revision to the threshold effective from April 1.
The earnings threshold, set periodically by the employment & labour minister, has been raised to R254,371.67 annually (R21,197.64 monthly). This represents a 5.5% increase and the adjustment will extend the scope of the Basic Conditions of Employment Act as well as other employment statutes. This change has been met with approval from most circles.
New salary guidelines affect worker entitlements
The adjustment in the salary threshold, which delineates who falls under certain protections, will exclude employees who earn above this new limit from specific provisions of the Basic Conditions of Employment Act, as well as certain aspects of the Labour Relations Act and the Employment Equity Act.
Under the Basic Conditions of Employment Act, employees whose earnings exceed the defined threshold are exempt from regulations concerning standard working hours, overtime, compressed working weeks, averaging work hours, meal breaks, daily and weekly rest periods, Sunday wages, night shift pay and holiday pay.
Concerning the Labour Relations Act, individuals earning above this threshold are not covered by the deeming provision, which implies that employees hired through a temporary employment agent, and not engaged in temporary tasks, are considered, after three months, employees of the hiring company for Labour Relations Act purposes. Moreover, those earning above the threshold are not included in additional regulations concerning fixedterm employees, who, after three months are considered as indefinitely employed if there is no justified reason for the fixed term.
In terms of the Employment Equity Act, an employee earning more than the threshold — and facing a dispute under Chapter II regarding unfair discrimination — cannot take the dispute to the Commission for Conciliation, Mediation, and Arbitration for arbitration, except in cases of alleged unfair discrimination based on sexual harassment, or where all parties consent to arbitration. Instead, they must refer their dispute to the Labour Court for resolution.
Understanding the new salary threshold
It’s paramount for employers to grasp the full extent of these changes and their implications to maintain compliance and ensure a seamless transition for all stakeholders involved.
Employers are advised first to conduct a comprehensive review of their current payroll to identify which employees are affected by the updated threshold. This entails a detailed comparison of each employee’s annual earnings against the new limit to ascertain their eligibility for various employment protections. Following this, it’s necessary for employers to adjust their payroll systems, which may involve updating employee classifications to comply with the new regulations regarding overtime, working hours, and other related protections.
To ensure legal compliance, consulting with legal experts, who specialise in employment law, might be a step employers could consider. Such consultations can help in reviewing and updating employment contracts, company policies and HR procedures to align with the updated salary threshold.
Moreover, equipping HR staff and managers with the knowledge on how to navigate the implications of the new threshold through targeted training sessions can aid in a smoother adaptation process. These sessions should encompass guidelines on managing overtime, rest periods, and other affected areas of employment.
Transparent communication with employees is essential to clarify any changes in employment conditions. Employers might find it beneficial to hold information sessions or distribute memos detailing the impact of the new threshold on employment status and rights. Furthermore, providing support through one-onone sessions to address individual questions or concerns can help alleviate employee anxieties, demonstrating the employer’s commitment to a supportive transition.
The adjustment of SA’s earnings threshold marks a pivotal enhancement in labour protections. It calls for a proactive approach from employers to ensure compliance and uphold the wellbeing of their workforce. This move embodies a move towards broader employment rights and a commitment to maintaining a fair and positive workplace.
Remember, collective agreements and custom and practice are also relevant as to which terms and conditions apply. This must be properly investigated.