As of the 1st of January 2019, the national minimum wage act has become effective and brings various compliance and penalty issue into play for all employers. The national minimum wage is R20 per hour and R15 for Domestic Workers. You can not unilaterally alter employees working conditions such as hours of work to reduce the impact of this act as this will constitute an unfair labour practice.
The minimum wage is exclusive of other benefits, allowance and gratuities such as waiter’s tips. More importantly the act in effect is an “extension” of the Basic Conditions of Employment Act which in itself has a multitude of minimum requirements placed on the employer. Following are just some of the basic minimums that apply to an employment contract.
- Maximum working hours per week is 45
- Maximum overtime hours per week is 10
- Overtime paid at 1.5 times or time off
- 1 hour meal time for every 5 hours of work unless working less than 6 hours per day
- Sunday work paid at double time or 1.5 times if ordinarily works on a Sunday
- Public holidays are paid leave days and if worked is paid at double rates
- For each 17 days work an employee is entitled to 1 days paid leave
- An employee may not return to work within the first six weeks of giving birth
- All employees must have a written employment contract
- All employees are entitled to a proper payslip
- On termination and employee is entitled to a “certificate of service”
Unless the employee works less than 24 hours a month these and more minimums apply. Visit www.labour.gov.za for a multitude of guides and templates such as the Sample – Employment Contract we have attached here.