South Africa July 8 2015

The annual earnings threshold in terms of the Basic Conditions of Employment Act (“BCEA”) is presently R205 433.30 per annum (or R17 119.44 per month).

Employees earning above this threshold are excluded from certain sections of the BCEA, which address: ordinary hours of work; overtime; compressed working week; averaging of hours of work; meal intervals; daily and weekly rest periods and compensation for work performed on Sundays, at night or on public holidays.

The amendments to the Labour Relations Act (“LRA”) also extend additional protection to employees who earn below the earnings threshold and are engaged in atypical forms of employment (fixed term, part time and labour broker employees).

The earnings threshold is typically increased annually on 1 July. However,

the Department of Labour has advised that the earnings threshold will not be increased this year. The earnings threshold thus remains R205 433.30 per annum.

Employers should conduct a due diligence to ensure that their employment contracts, benefit polices and remuneration practices of employees who earn below the threshold accord with the rights afforded to employees in the BCEA and the amendments to the LRA.

Fasken Martineau DuMoulin LLP-Melanie Kirsten Hart