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

Notices

Motor Industry Bargaining Council  (MIBCO)

Extension to Non-Parties of the Main Collective Agreement

Division A

Clause 6: Additional Holiday Pay & Holiday Bonus

6.2. Additional Holiday Pay: Applicable only to Grade 7 & 8 Employees

 

(1) Rates—
(a) Every employer registered in terms of this Agreement shall in respect of every grade 7 and grade 8 employee employed by him, pay additional holiday pay for each week of employment as follows—

 

Payable in respect of a Grade 7 employee:

(i) For the period from the date of implementation as determined by the Minister of Employment and Labour to 31 August 2023 — R100.77 per week
(ii) For the period 01 September 2023 to 31 August 2024 — R105.81  per week
(iii) For the period 01 September 2024 to 31 August 2025 — R111.10 per week.

 

Payable in respect of a Grade 8 employee:

(i) For the period from the date of implementation as determined by the Minister of Employment and Labour to 31 August 2023 — R115.18 per week
(ii) For the period 01 September 2023 to 31 August 2024 — R120.94  per week
(iii) For the period 01 September 2024 to 31 August 2025 — R126.99 per week.

 

(a) Provided that:—
(i) where a grade 7 or grade 8 employee receives or is entitled to receive wages for less than 23 hours in the aggregate in any week, no additional holiday pay shall be payable on behalf of such employee in respect of that week, unless such lesser wages are attributable to absence from work—
(aa) owing to sickness or accident not exceeding in the aggregate 30 days in any one year;
(bb) because of short-time; or
(ii) where in any leave cycle a grade 7 or 8 employee has been absent from work through illness or accident for 30 days, his employer may reduce the additional holiday pay by one-fifth of the weekly amount payable, in respect of each further day of absence through illness or accident.

 

(2) Payment of additional holiday pay to Council—

Subject to the provisions of sub-clause (3) of this clause, the amounts payable in terms of sub-clause (1) of this clause shall be remitted by the employer monthly, but not later than the 1Oth day of the month immediately following that to which such amounts refer, together with a written statement of the names of the employees concerned and the amount of the additional holiday pay being sent for each such employee to the secretary of the Regional Council in whose area of jurisdiction the establishment is situated.

Note:

(a) Forms prepared specifically for the inclusion of the details required by this sub-clause are obtainable from the secretary of the Regional  Council concerned.
(b) Notwithstanding the provisions of sub-clause (2) of this clause, an employer may apply to the Regional Council concerned for an exemption in terms of which such additional holiday pay may be paid direct to the employee when he proceeds on annual leave.

 

(3) Effect of absence from work on additional holiday pay—
(a) In cases where a grade 7 or grade 8 employee has been absent from work for the reasons specified under proviso (b)(i) and (ii) of sub-clause (1) of this clause, the additional holiday pay in terms of sub-clause (1) of this clause shall be paid by the employer direct to the beneficiary on or before each pay-day falling within his period of absence.
(b) In cases where a grade 7 or grade 8 employee has been absent from work for the reason specified under proviso (b)(i) of sub-clause (1) of this clause, the additional holiday pay payable in terms of sub-clause (1) of this clause shall be paid direct to the beneficiary when he qualifies for or takes his annual leave.

 

(4) Payable before beginning of period of leave—

The additional holiday pay payable in terms of sub-clause (1) of this clause shall be payable to grade 7 and grade 8 employees when they proceed on annual leave, and application for it shall be lodged with the Regional Secretary concerned at least two weeks before the beneficiary's leave is due to begin.

 

(5) Deductions from additional holiday pay—

Except as provided elsewhere in this Agreement, no deduction from additional holiday pay shall be made as a set-off against any money that may be owing to the employer.

 

(6) Payment of additional holiday pay held as a result of incapacity or death—

Additional holiday pay held by a Regional Councilor by an employer on behalf of an employee who for health reasons or any other incapacity has become unable to continue at his occupation shall become payable immediately to the employee, and additional holiday pay due to an employee who dies in the course of his employment shall become payable immediately to his estate.

 

(7) Special account—

All amounts received in respect of additional holiday pay shall be placed in a special account operated by Regional Councils.

 

(8) Payment of additional holiday pay to employee—

Except as otherwise provided in this clause, additional holiday pay held on behalf of an employee shall be paid to him—

(a) if he leaves the Industry, on the expiration of 52 weeks calculated from the date on which the additional holiday pay commenced to accrue;
(b) while he is employed in the Industry, when he proceeds on annual leave, or earlier, at the discretion of the Regional Council concerned.

Note: The  calculation is based on 52 or 53 (weeks), whichever is applicable.

 

(9) Interest on late payment to Council—

Should any amount due in terms of this clause not be received by the Council by 15th day of the month following the month in respect of which it is payable, the employer shall pay interest on such amount or on such lesser amount as remains unpaid, calculated at the rate prescribed in clause 22 of the Administrative Agreement, from such 15th day until the day upon which payment in cash is actually received by the Regional Council concerned

Provided that a Regional Council shall be entitled in its absolute discretion to waive the payment of such interest or part thereof.