Issue in dispute
For purposes of the threshold, “earnings” means the regular annual remuneration before deductions, i.e. income tax, pension, medical and similar payments but excluding similar payments (contributions) made by the employer in respect of the employee, provided that subsistence and transport allowances received, achievement awards and payments for overtime worked shall not be regarded as remuneration.
Employees earning above the threshold will not (unless by agreement between the parties) be entitled to the full protections and benefits under the BCEA in respect of ordinary hours of work, overtime, compressed working week, averaging of hours of work, meal intervals, daily and weekly rest periods, pay for work on Sundays, night work and work on public holidays. An employee earning below the threshold will, for example, be entitled to payment for overtime worked; and for work performed on Sundays and on a public holiday on which the employee would ordinarily not be required to work.
If the threshold it raised it will most likely mean that more employees will be entitled to these benefits which in turn will have an impact of the costs of employment faced by employers. Employers seeking to submit representation to the DOL are required to do so by no later than 7 May 2013. Representations must be directed to the Director, Employment Conditions Commission, Department of Labour, Private Bag X117, Pretoria, 0001.