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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

16. Annual Shutdown

 

(1) Except as provided for in subclauses (2) and (3), every employer who wishes to observe an annual shutdown of the establishment or department thereof in terms of the provisions of this clause shall apply to the Regional Council concerned at least nine months in advance of the intended shut-down of the establishment or department thereof, as the case may be, and shall have first obtained the consent of the Regional Council Committee before implementing these provisions of the Agreement.

 

(2) Employers who were observing an annual shutdown arrangement for the purpose of the paid leave prior to the coming into operation of this Agreement shall be deemed to be observing an annual shutdown and are not required to advise the Regional Council concerned of the observance of that arrangement.

 

(3) Every employer entering the Industry after the commencing date of this Agreement shall, within one month of commencing operations, advise the Regional Council concerned whether the leave provisions of the Agreement or, alternatively, an annual shutdown, will be observed.

 

(4) Where an annual shutdown is to be observed, the establishment (or department, as the case may be) shall be closed for such unbroken period as will enable employees who have qualified for paid leave in terms of clause 12(3) of this Part of the Agreement to take their full paid leave extended by any days that must be added in terms of clause 12(3)(c), and the period of the closure shall, as near as practicable, fall between the same dates in each 12-month period.

 

(5)
(a) Any employee who at the date of the closing of an establishment in terms of subclause (4), is not entitled to the full period of the paid leave prescribed in clause 12(3) of this Part of the Agreement shall be paid leave pay and the leave enhancement pay referred to in clause 14 of this Part of the Agreement proportionate to the qualification for the paid leave completed at the date of the closing of the establishment. The employment of any employee thus affected shall be deemed to commence from date of re-opening of the establishment (or department, as the case may be) for the purpose of his qualification for his next paid leave.
(b) Notwithstanding anything to the contrary contained in this Agreement, any employee who actually worked all available shifts during the period from the first day after the previous year’s annual shutdown up to and including the last shift preceding the current shutdown shall be entitled to full pay and leave enhancement pay as provided for in this Agreement: Provided that for the purposes of this subclause, all shifts not actually worked but for which an employee is entitled to credit towards his/her leave qualification in terms of this Agreement shall be counted as shifts actually worked.

 

(6) Nothing herein contained shall operate to preclude an employer from employing the services of employees required for essential work during the period of the shutdown: Provided that the names of the employees whose services are required for essential work (other than maintenance work as herein defined) and the reasons therefore shall be notified to the Council at least one month in advance of the employees’ services being required: Provided further that any such employees whose services are retained during the period of the shut-down shall be given their paid leave in conformity with the remaining provisions of the Agreement.

‘Maintenance Work’ referred to herein means and shall be limited to urgent maintenance or repair work in connection with an employer’s own plant and/or machinery.

 

(7) Where an employer observes an annual shutdown, he shall display in the establishment nine months before the date of the shutdown a notice setting out the date of the next annual shutdown.

 

(8) Every employer who elects to observe the annual shutdown shall be bound to carry on with that arrangement and shall not depart therefrom except by giving at least 12 months’ notice to his employees of his intention to depart from the arrangement and by obtaining the consent of the Regional Council Committee to the proposed change.

 

(9) Where an employer who observes an annual shutdown in terms of this clause terminates the employment of an employee and the proportionate period of paid leave accrued to the employee at the date of termination would extend from that date into the annual shutdown and the employer re-engages the same employee within one month after the re-opening of the establishment, the employee shall be entitled to payment as provided for in clause 11 (1) of this Part of the Agreement in respect of the public holidays referred to in that subclause which fell within that period of the paid leave accrued to the employee at date of termination that would have extended into the period of the annual shutdown, and the employer shall, upon his re-engaging the employee after the re-opening of the establishment, make such payment to the employee if it has not already been made.