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

Notices

National Bargaining Council for the Hairdressing, Cosmetology, Beauty and Skincare Industry

Extension to Non-parties of the Consolidated Main Collective Agreement

Terms and Conditions that will apply nationally

22. Personal Services Commission ("PSC")

 

22.1 For purposes of this clause 22 and elsewhere in this Agreement where it is necessary to calculate PSC (leave pay or notice pay or severance pay), PSC will be calculated on the basis of:
22.1.1 the average monthly Target Based Commission, calculated over the preceding 12 (twelve) month period as at the date when the calculation is applicable (or pro-rata part thereof should the Employee be employed for less than a 12 (twelve) month period); multiplied by
22.1.2 the percentage PSC as agreed upon between the Parties to this Agreement i.e Employers' Organisation and Trade Union; divided by
22.1.3 21.67 (twenty-one point six seven) in the event of a 5 (five) day working week or, 26 (twenty-six) in the event of a 6 (six) day working week; multiplied by
22.1.4 the number of days annual leave, or notice days in lieu of notice pay or severance pay, payable.

 

22.2 The sum total of the PSC calculated in clause 22.1 above will not be payable in respect of leave taken should:
22.2.1 the leave constitute occasional leave and the normal payment to be made by the Employer to the Employee for the pay month in respect of which the occasional leave is taken, is more than the payment to be made should the aforesaid calculation be applied. For purposes of this clause "pay month" shall be interpreted as the monthly cycle in respect of which an Employee is entitled to receive payment from an Employer, irrespective whether this monthly cycle corresponds with calendar months;
22.2.2 the period of leave taken exceeds the statutory leave to which an Employee is entitled to in any 12 (twelve) month cycle of continued employment;

 

22.3 In the absence of any agreement between the Employer and Employee that neither party have to pay notice pay to the other, notice pay in terms of this clause 22 will be payable:
22.3.1 by an Employer to an Employee, if the Employee's employment is terminated and the Employer elects that the Employee should not work any notice period; or
22.3.2 by an Employee to an Employer, if the Employee's employment is terminated and the Employee elects not to work any notice period. The Employer in such event may deduct the notice pay from any monies payable to the Employee.

 

22.4 The number of days for purposes of calculating:
22.4.1 notice pay, will be limited to those set forth in clause 23 below. For purpose of this calculation week shall be 5 (five) days for Employees working a 5 (five) day week and 6 (six) days for Employees working a 6 (six) day week;
22.4.2 severance pay, will be limited to those set forth in clause 37 of each Area.

 

22.5 Should Target Base commission earned by the Employee during a pay month when annual leave is taken, be more or equal to the average commission earned by the Employee during the preceding 12 pay months, no PSC shall be payable by the Employer to the Employee. For purposes of this clause "pay month" shall be defined as the normal interval as from the date upon which the last Commission is received until date when the next Commission is payable.

 

22.6 Examples of the calculation set forth in clause 22.1 above, are reflected in annexure "E" hereto.