Earnings threshold 2023: Newly increased
Earnings threshold 2023: What is earnings?
- Basic Conditions of Employment Act (BCEA): Employees earning in excess of the earnings threshold are excluded from certain sections in the BCEA. These exclusions refer to the provisions that regulate ordinary hours of work, overtime, compressed working weeks, averaging of hours of work, meal intervals, daily and weekly rest periods, pay for work done on Sundays, pay for night work and pay for work done on public holidays.
- Labour Relations Act (LRA): In terms of the LRA, employees employed by a temporary employment service/labour broker who are not performing a temporary service are deemed to be employees of the client. The LRA furthermore states that employees on a fixed term are employed indefinitely and deemed to be permanent employees after three months in the absence of justifiable reasons for fixing the term of the contract.
Employees earning in excess of the earnings threshold are not subject to either of these provisions and can be employed on a fixed term basis exceeding three months without a justifiable reason.
- Employment Equity Act (EEA): If an employee earns above the threshold and has a dispute under Chapter II of the EEA relating to unfair discrimination, the matter may not be referred to the Commission for Conciliation, Mediation and Arbitration (CCMA) for arbitration and must be referred directly to the Labour Court for adjudication, unless:
- the dispute relates to alleged unfair discrimination on the grounds of sexual harassment; or
- the parties all agree for arbitration to be held at the CCMA.
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