The UIF will compensate affected workers through a new "National Disaster Benefit". It is important to begin with contractual rights: an employer is contractually obliged to pay the employee for their full contracted hours. This 'lockdown' is temporary. The lockdown announced by President Ramaphosa on Monday night has drastic and far-reaching consequences for employment relations in South Africa. But I am not convinced that it can address the crisis completely,” he said. Most employees have contractually fixed hours. This e-mail address is being protected from spambots. Even when the country was in the throes of the State of Emergency in the 80s and early 90s, work continued, albeit with strict social controls in place and a strong police and military presence. With some employees also opting to self-quarantine, there are a number of labour law considerations that South African businesses will have to consider. The Act further provides that an employer is obliged to pay the employee for those leave days, he said. The UIF has also set up a dedicated hotline for any enquiries about the Covid-19 benefits. In South Africa, the nation-wide lockdown has seen many businesses having to shut down operations. Employers will usually explain … Notice pay is the amount of money an employer can pay an employee in lieu of notice when the … gross salary) remuneration of the employee and not the decreased remuneration for the period of the Lockdown (i.e. How do I reduced my employee’s hours of work and salary due to our economic climate. If staff can only perform a part of their duties during lockdown then discuss a revised payment structure with them for that reduced workload. The employer's obligation to pay continues - unless the 'lockdown' lasts for a long time. The employer can apply for the “National Disaster Benefit” from the UIF if unable to pay employees during this period. Employers can only tell you to reduce your hours if it's already outlined in your contract saying that they can. “An employer cannot unilaterally reduce an employee’s salary,” she said. var addy46329 = 'Covid19ters' + '@'; Where employees are able to work from home, they ought to be remunerated. In that case, the legal obligation to pay ends: but do not panic, that point has not been reached. _____ Anonymous Date: Mar 16, 2017. The R 17 712 per month remuneration is therefore based on the previous month’s full remuneration and not the “nett” remuneration received during Lockdown. In terms of this scheme, employees are entitled to a salary benefit, capped at R17,712 per month. Employers may apply the principle of "no work no pay" during the forced lockdown period. \n “In the first week of lockdown, our members were talking about how to fund staff salaries,” says Gerhard Papenfus, CEO of the National Employers Association of South Africa (NEASA), which represents more than 10,000 businesses. The ETI claims are available for a period of 24 months per eligible employee. In response to the economic impact of the pandemic on businesses, some have asked employees to reduce their weekly hours. var prefix = 'ma' + 'il' + 'to'; The first option is that they can reach an agreement with the employees that they take paid leave for whole or part of the period from 26 March to 16 April. Employees cannot refuse this request, as the employer may unilaterally require employees to take their annual leave (section 20(10) of the Basic Conditions of Employment Act). Employers who are unwilling or unable to the pay salaries to employees who cannot work during during the lockdown have a number of options open to them to attempt to ensure that employees do not suffer unduly. The labour-intensive nature of the South African economy further reduces the economy’s ability to continue as normal during a time of lockdown. where the ordinary wages or salary of an employee named in your application was lawfully below the amount of the subsidy before the impact of COVID-19, pay the employee that amount. The biggest, most powerful and most experienced of employers can lose in the Labour Court. //--> 1.5 How does the employer apply for this benefit and how does it get paid out to employees? What can an employer deduct from my salary? Any agreements reached should be recorded in writing as a variation to the underlying employment agreement and employees are entitled to obtain … document.write(''); To claim for this benefit, employees should submit the following documents: Employers are entitled to commence with a redundancy process due to operational requirements. The Centre has justified in the Supreme Court its March 29 direction asking private establishments to pay full wages to workers during the Covid-19 lockdown and said that employers claiming incapacity in paying salaries must be directed to furnish their audited balance sheets and accounts in the court.. Letter of Authority, on an official company letterhead granting permission to an individual specified to lodge a claim on behalf of the company; MOA (completion of the agreement between UIF, Bargaining Council and Employer); Prescribed template that will require critical information from the employer (this template has not been provided); Evidence/payroll as proof of last three months employee(s) salary(ies); and. How can employees get paid during South Africa’s Covid-19 lockdown? This includes an already struggling South Africa, where citizens are preparing for Friday’s 21-day lockdown. By continuing to use this site you consent to the use of cookies on your device as described in our cookie policy unless you have disabled them.