Government Legislation - 29 April 2003

Determination of the Earnings Threshold in Terms of the Basic Conditions of Employment Act

Government Gazette Notice 356 published on 14 March 2003 provides that the
earnings threshold in terms of section 6(3) of the Basic Conditions of Employment Act has increased from R89 455 to R115 572 per annum. This amendment came into effect on Monday, 24 March 2003.

The amendment means that all employees earning in excess of R115 572 per annum are excluded from the provisions of sections 9, 10, 11, 12, 13, 14,15, 16, 17 and 18(3) of the Act. These sections deal mostly with matters such as working time, overtime, meal intervals, daily and weekly rest periods, as well as Sunday work and certain public holiday provisions.

For purposes of the notice "earnings" means gross pay before deductions, ie. Income Tax, Pension, Medical and similar payments but excluding similar payments (contributions) made by the employer in respect of the employee.

GUIDE TO CLAIM COMPENSATION FOR OCCUPATIONAL DISEASES AND INJURIES (FORMERLY WORKMENS COMPENSATION)

SACOB, with the assistance of the Compensation Commissioner's office, has compiled a guide to assist small business to claim compensation in the case of injuries sustained by workers.

This two page guide, in MS Word format, is available free of charge to all members of the WesVaal Chamber of Business on request.

REGISTRATION OF DOMESTIC WORKERS/GARDENERS FOR U.I.F.

As of 30 April 2003, all domestic workers and gardeners who work more than 24 hours per month will have to be registered with the Unemployment Insurance Fund. Failure to do so will result in the employer facing a fine of R5 000,00. The employer is expected to contribute 1% of the domestic workers salary and the domestic worker will contribute an additional 1%.

Employers who haven't already registered their staff can visit www.uif.gov.za and click on UIF Forms. 3 Forms are available on the website which can be downloaded:

• UI-7 Monthly Return form (contains the relevant banking details into which money must be deposited)
• UI-8 Application for registration as an employer (all first time employers must complete)
• UI-9 Information about the employee

A fact that is often overlooked in terms of unemployment insurance is that employees who resign are not legible to claim unemployment insurance benefits.

Please ensure that your domestic workers are fully aware of this ruling so as not to create any expectations.