The Department of Employment and Labour (DEL) has published a new earnings threshold under the Basic Conditions of Employment Act 75 of 1997 (BCEA). The new earnings threshold will take effect from 1 March 2021. The earnings threshold was last amended 7 years ago on 1 July 2014.
The table below summarises the new change to the earnings threshold –
Section 6 of the BCEA empowers the Minister of Employment & Labour to publish an earnings threshold that will exclude employees who earn above that amount from certain sections of the BCEA as follows –
The following sections of the Labour Relations Act 66 of 1995 apply to employees earning below the earnings threshold –
It is important for employers to assess whether employees previously excluded from the application of the applicable sections of the LRA and/or BCEA as set out above now fall under these sections. This may have significant financial consequences for an employer.
Written by Kirsten Eiser, Nivaani Moodley, Shane Johnson from Webber Wentzel