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Labour Relations Act, 1995 (Act No. 66 of 1995)

Notices

Bargaining Council for the Metal and Engineering Industries

Main Collective Agreement

Part 1 : Conditions of Employment

8. Payment of Earnings

 

(1)
( a) Except as provided for in subclause (2), any amount due to an employee in terms of this Agreement shall be paid weekly, in cash, on Friday.  Payment shall be made by not later than the ordinary stopping time, and shall include all payments due to the employee, calculated up to and including the shift completed on the preceding Tuesday of the same week: Provided that where employment terminates before the ordinary payday, all payments due to the employee in terms of this Agreement shall be paid to him on his employment so terminating.
(b) Every employee shall, on payment, be given a statement showing the name and address of the employer, the name and occupation of the employee, his total earnings, ordinary time and overtime payments, allowances, deductions and the number of shifts accrued towards holiday leave.
(c) An employer and elected shop stewards shall communicate the prevailing method of payment observed in an establishment to a newly employed employee and draw the employee’s attention to subclause (2)(e), if applicable.

 

(2)
(a) Notwithstanding the provisions of subclause (1)(a), an employer may, with the consent of or at the request of an employee, agree that any amount due to the employee in terms of this Agreement shall be paid weekly, fortnightly or monthly in cash or by cheque or to the credit of such employee with a bank, building society or registered deposit-receiving institution as nominated by the employee: Provided that where employment terminates before the ordinary pay day applicable to such an employee, the employer shall pay all payments due to such an employee in terms of this Agreement—

(i)        upon his employment so terminating; or

(ii) where the employer and employee concerned mutually agree to a termination of employment period longer than the period provided for in this Agreement, by not later than the last day of the termination of employment period agreed upon.
(b) An employer may, with the mutual consent of at least 75 per cent of his employees, agree that the provisions of this subclause shall apply to all employees in the establishment.
(c) Where, by mutual agreement, the method of payment of employees changes from weekly to monthly, the Council shall be deemed to have approved such agreement: Provided that—
(i) all payments due to the employee(s) in terms of this Agreement shall be payable to the employee(s) two banking days before the last working day of each calendar month;
(ii) the monthly remuneration of employee(s) shall not be less than the amount the employee(s) would have been entitled to, had such employee(s) been paid weekly;
(iii) employee salaries shall be increased by not less than the equivalent of any statutory increase payable in terms of any Council agreement from time to time;
(iv) all other provisions of the Agreement shall continue to apply unless otherwise exempted;
(v) all contributions payable in terms of any Council agreement applicable to such employee shall be maintained unless the employee(s) or the establishment is legally exempted or excluded from payment of such contributions.
(d) The provisions of subclause (2)(b) may be implemented with immediate effect in respect of those employees in favour of monthly payment procedures, subject to the Regional Council concerned being advised in advance. In respect of those employees not in favour of monthly payment procedures the employer shall, before implementing the provisions of subclause (2)(b), give the employees and the Regional Council at least three months’ notice in advance of the introduction of monthly payment procedures in respect of those employees and specify the manner in which payment of earnings will be made.
(e) Any employee entering into employment in an establishment where the provisions of subclause (2)(b) apply, shall be deemed to have accepted such monthly payment as a condition of employment.
(f) Notwithstanding anything to the contrary contained in this Agreement, payment of leave pay and leave enhancement pay may be made in accordance with the provisions of subclause (2) in the same manner as that by which payment of earnings is made.

 

(3) Except as otherwise provided in this Agreement, no deduction of any description, other than the following, may be made from the amount payable in terms of this Agreement to any employee:
(a) For board or lodging or both in accordance with clause 1(2) of Part II of this Agreement;
(b) for canteen services where the deduction is authorised by stop order terminable by the employee at not more than 28 days’ notice of termination of his agreement to this deduction;
(c) where an employee is absent from work, including absence during any unpaid leave granted in extension of the paid leave provided for in this Agreement, a pro rata amount for the period of such absence;
(d) with the written consent of the employee, deductions for sick benefit, insurance, pension and provident funds or contributions to recreation funds;
(e) contributions to funds levied in terms of Bargaining Council Agreements;
(f) any amount paid by an employer, compelled by law, ordinance or legal process, to make payment on behalf of an employee;
(g) where an employer, due to clerical or accounting or administrative error, or miscalculation, pays an employee any remuneration in excess of the amount legally payable, the employer shall be entitled to recover the amount of overpayment by deduction from subsequent wages or earnings, subject to the following provisions:
(i) The deductions may be made from one or more payments of wages or earnings, but no one deduction may exceed 15 per cent of the wages or earnings from which it is deducted;
(ii) no such deduction shall be made from any leave pay or leave enhancement pay payable under this Agreement either to the employee or to the Council;
(iii) no such deduction or deductions shall be made unless the employer, in writing, notifies the employee prior to the time of the first deduction, and the Council within seven days of the first deduction, of the circumstances under which the overpayment was made, the amount thereof, and the amount of the proposed deduction or deductions;
(h) upon the written request of the employee, deductions required by him for the purpose of reducing his liability on a loan which has been made for the purchase or improvement of immovable property of the employee or the redemption of any loan to the employee against the security of such property, whether such property is held or to be held by the employee freehold or on leasehold, sectional title or otherwise: Provided that—
(i) such property is occupied or will be occupied by the employee or a dependant of the employee;
(ii) no deduction shall be made from any leave enhancement pay or termination leave pay payable under the Agreement either to the employee or to the Council;
(iii) no single deduction shall exceed 25 per cent of the earnings, before all other deductions, but excluding any payment for overtime;
(iv) the loan creditor is the employer, a pension or provident fund acting in terms of its rules, a
(v) building society, any other organisation approved by the Council or any one or more of such persons or bodies acting jointly;

 

(4) With the written consent of the employee, deductions in respect of subscriptions to a trade union party to the Council shall be deducted by the employer from the wages of an employee. Any subscriptions so deducted shall be paid by the employer to the trade union concerned by no later than the 15th day of the month immediately following the month to which the subscriptions relate, and shall be accompanied by a written statement containing the following details in respect of each employee from whose wages subscriptions are being deducted:
(i) Surname and initials;
(ii) Identity number, if available;
(iii) Amount deducted;
(iv) Period in respect of which subscriptions were deducted.

 

(5) No premium for the training of an employee shall be charged or accepted by an employer: Provided that this subclause shall not apply in respect of training schemes to which the employer is legally required to contribute.

 

(6) Where in any establishment or place, work is performed by employees organised in sets or teams, each employee shall be paid his earnings by the employer.

 

(7) The employer shall keep a record of each payment to each employee for a period of not less than 3 years.  The record must reflect the employee’s name, date of birth, job grade, date of engagement, date of termination (where applicable), rate of pay, nature of each payment and, in the case of wages, the total earnings, ordinary time and overtime payments, allowances, deductions and number of shifts accrued towards holiday leave.