Short time: what is it and how does it work?

Short time is a useful tool for both employer and employee to deal with a temporary sharp downturn in trade. But it has to have the workforce’s buy-in and be applied correctly.

The coronavirus disease (COVID-19) pandemic has had serious implications, either directly or indirectly, for many South Africans, as well as a negative effect on the economy as a whole. Many employers are concerned about whether they can stay viable during the disaster, especially considering a possible loss of income and their obligation towards employees.

When staff cannot be employed for a full working week due to a slowdown in trade, a shortage of raw materials, or a general breakdown of plant or machinery caused by an accident or any other unforeseen emergency, the employer may implement short time, subject to following the correct procedure.

The COVID-19 pandemic is clearly an unforeseen emergency, and the employer can therefore implement short time if the normal work volume has decreased drastically, but certain operational activities still need to take place. Employees will therefore work fewer hours and be compensated accordingly, subject to a payment of a minimum of four hours in terms of Section 9A of the Basic Conditions of Employment Act.

MUTUAL AGREEMENT

Working hours form a key part of the employment contract and the employer cannot make any changes unilaterally. In order for short time to be implemented, there must be an agreement in place between employer and employee, where the latter has given consent for the implementation of short time.

Employers are advised to be proactive in this regard, and include a short time clause in the employment contract, as conditions that lead to the implementation of short time are often unforeseen. Including a clause can save an employer a great deal of time and money.

If no prior agreement is in place between employer and employee with regard to implementing short time, the parties must consult about the change within working hours.

The employer is legally required to consult with all parties involved in the implementation of short time.

This means that if a trade union is represented in the workplace, it must be included in the consultation process.

When discussing the implementation of short time, the following items must be on the agenda:

• The date when short time will be implemented;

• The duration of its implementation;

• The number of employees who will have to work short time, and which divisions of the business will be affected.T

• The form of short time that will be implemented (for example, will there be a reduction in the number of working hours or the number of days that an employee works per week?).

Employees are entitled to claim benefits from the Unemployment Insurance Fund (UIF) for the difference in remuneration normally received and the remuneration received for the new working hours.

The UIF benefit will be determined on a sliding scale.

AN EMPLOYER IS LEGALLY REQUIRED TO CONSULT WITH ALL PARTIES INVOLVED

BY CHRISTOFF DAMES Christoff Dames, who has an LLB and a certificate in Advanced Labour Law, is an admitted advocate of the High Court. For all labour-related issues, phone the LWO Employers’ Organisation on 0861 101 828. Email the LWO at farmersweekly@caxton.co.za. Subject line: Labour.