EMPLOYER'S OBLIGATIONS IN RELATION TO REMUNERATION

An employer is obliged to pay remuneration within 7 days after the completion of the period for which the remuneration is payable. If there is a particular pay date stipulated in any contract of employment or other agreement, then the employer is obliged to adhere to the conditions stipulated.

Deductions from remuneration

Generally, an employer may not make any deductions from an employee’s remuneration without the written consent of the employee, except for statutory deductions such as PAYE, UIF, any deduction required by Court Order, or deductions for retirement fund contributions or medical aid contributions.

What is the remuneration for labour?

Any cash payment or payment in kind that is provided in order to enable the employee to work (for example, equipment, tools, or a similar allowance or the provision of transport or the payment of a transport allowance to enable the employee to travel to and from work only.)

What is Section 27 of the Labour Relations Act?

Section 27, which is in the Chapter on Fundamental Rights in the Constitution entrenches the following rights: Every person shall have the right to fair labour practices. Workers shall have the right to form and join trade unions, and employers shall have the right to form and join employers' organisations.

According to the Labour Relations Act payment of remuneration and information about remuneration are explained in section 32 and section 33.

   Payment of remuneration

1. An employer must pay to an employee any remuneration that is paid in money-

   1. in South African currency;

   2. daily, weekly, fortnightly, or monthly; and

   3. in cash, by cheque, or by direct deposit into an account designated by the employee.

1. Any remuneration paid in cash or by cheque must be given to each employee-

   1. at the workplace or at a place agreed to by the employee;

   2. during the employee's working hours or within 15 minutes of the commencement or conclusion of those hours; and

   3. in a sealed envelope which becomes the property of the employee.

1. An employer must pay remuneration not later than seven days after-

   1. the completion of the period for which the remuneration is payable; or

   2. the termination of the contract of employment.

1. Subsection (3) (b) does not apply to any pension or provident fund payment to an employee that is made in terms of the rules of the fund.

   Information about remuneration

1. An employer must give an employee the following information in writing on each day the employee is paid:

   1. The employer's name and address;

   2. the employee's name and occupation;

   3. the period for which the payment is made;

   4. the employee's remuneration in money;

   5. the amount and purpose of any deduction made from the remuneration;

   6. the actual amount paid to the employee; and

   7. if relevant to the calculation of that employee's remuneration-

      1. the employee's rate of remuneration and overtime rate;

      2. the number of ordinary and overtime hours worked by the employee during the period for which the payment is made;

      3. the number of hours worked by the employee on a Sunday or public holiday during that period; and

      4. if an agreement to average working time has been concluded in terms of section 12, the total number of ordinary and overtime hours worked by the employee in the period of averaging.

1. The written information required in terms of subsection (1) must be given to each employee-

   1. at the workplace or at a place agreed to by the employee; and

   2. during the employee's ordinary working hours or within 15 minutes of the commencement or conclusion of those hours.