From 1 April 2024, the threshold will increase to R254,371.67, up by R13,261.08 from its current level. This effectively means an employee earning more than R21,197.64 monthly will earn over the threshold. What does this mean for you and your workforce?
Firstly, what is this earnings threshold all about? It’s a crucial determinant outlined in section 6(3) of the Basic Conditions of Employment Act (BCEA). This figure dictates which provisions of the BCEA, the Labour Relations Act (LRA), and the Employment Equity Act (EEA) apply to your employees. Essentially, it’s a dividing line—those above it misses out on certain protections enjoyed by their counterparts below the threshold.
Sections of the BCEA regulating ordinary hours of work, overtime, meal intervals, daily and weekly rest periods, Sunday pay, pay for night work and pay for work on public holidays only apply to employees earning below the threshold.
Employees earning above the threshold are not subject to the deeming provisions that apply to temporary employment services (labour brokers) and fixed-term employment provisions under the LRA.
In the EEA, employees earning above the threshold cannot refer disputes relating to unfair discrimination to the CCMA for arbitration unless it is related to sexual harassment or all parties agree to arbitration.
However, the correct definition of “earnings” in this context is very important. It’s not just about what’s in the pay cheque; it’s about understanding what counts toward that threshold. This is crucial for ensuring compliance and avoiding headaches down the line.
With this threshold increase, more employees might fall under the stricter protections of labour laws—think overtime payments and the like. This could mean some adjustments for you as an employer. It’s time to assess your situation, make any necessary changes to contracts or pay structures, and ensure you’re on the right side of the law.
In summary, the BCEA protection band is widening, and it is up to you to navigate these changes smoothly.
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