Basic Conditions of Employment
Learning Unit 4Pg 127
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BCEAPage 127
• Exploited labour• Unfair labour practices• Purpose of the act:
– Enhance economic development & social justice in South Africa by creating and regulating an environment conducive to fair labour practices.
ICB Junior Bookkeeper: Payroll & Monthly SARS Returns
BCEApg 127
• SA is a member state of the International Labour Organisation– Every member to put in place an Act that regulates
basic conditions of employment– Act applies to all workers & employers except for:
• Members of the National Defence Force• National Intelligence Agency• SA Secret Service• Unpaid volunteers working for charities
ICB Junior Bookkeeper: Payroll & Monthly SARS Returns
BCEApg 127
• Act regulating working hours does not apply to:– Workers in senior management– Sales staff who travel and regulate their own working
hours– Workers who work less than 24 hours in a month– Workers who earn more than R183,008 per year
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Duties of the employer• All employers
– Exceptions
• Employers with 5 or more workers– Two documents:
• Written particulars of employment• Pay slip
– Employee record– Display BCEA
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Normal Time & Overtimepgs 128 - 129
Ordinary hours of work
Overtime
Sunday work
Night work
Public holidays
Compressed workweek
Averaging out working hours
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Practice Exercise 4A Pg 131
Role of the Ministerpg 132
• Prescribe by regulation maximum permitted hours of work (including overtime)
• Regulation MAY NOT prescribe maximum hours in excess permitted by the Act
• Regulation may be made only on advice and consultation
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Meal Intervalspg 132
• 5 hours work = a meal interval of 1 hour• Employee may be required to perform duties• Remuneration for meal intervals• Continuous work• Agreement to change meal interval
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Daily and weekly rest periodspg 132
• Daily rest period = 12 consecutive hours– Can be reduced to 10 by agreement
• If employee lives on premises• Has a meal interval of at least three hours
• Weekly rest period = 36 consecutive hours• Can be over-ridden by an agreement
– Rest period of 60 consecutive hours every two weeks– Rest period reduced in one week if extended in the next week.
ICB Junior Bookkeeper: Payroll & Monthly SARS Returns
Leave types and accumulationpg 133 - 135
• Annual leave• Sick leave• Maternity leave• Family responsibility leave• Unpaid leave
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Practice Exercise 4B Pg 134
Remuneration includes the following:pg 135
• Housing/accommodation• Company car• Travel allowance• Cash payments• Fringe benefits• Employers’ contributions• Allowances
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Remuneration excludes the following:pg 136
• Allowances or payments in kind• Relocation• Gratuities• Share incentive schemes• Discretionary payments• Education• Reimbursable travel• Medical aid fringe benefits• Company contribution to social club or private group insurance scheme• Payments by employer to OID, RSC, SDL or UIF
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Payment for leavepg 136 - 137
• Remuneration must not be less when employee on leave than when employee at work
• Cash payment must be included in remuneration for leave purposes
• fluctuating payments calculated over 13 week period or any other period that is fair and equitable
• Excess annual leave• Leave accumulation
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Leave Accumulationpg 137
• Law states minimum number of days leave• Some companies insist leave must be taken at
one time• Leave can be broken down into annual and/or
accumulated
Recording & Validating employee recordspg 140
• Personnel files/information• Kept in a fire proof safe• Agreement of confidentiality• Security measures• Documents should be hand-delivered in sealed
folder
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Accurate recordspg 140 - 142
• Statutory records– BACE– IRP5– Remuneration register– UI-19
• Non statutory requirements• How and why records kept• Verification of data
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Statutory requirementspg 140
• BCEA– Employee’s name & job– Amount of time worked– Amount paid– Date of birth of workers under the age of 18
ICB Junior Bookkeeper: Payroll & Monthly SARS Returns
Statutory requirementspg 140 - 141
• Income Tax Act (IRP5)– First two names– Surname– Identification/passport number– DOB– Income tax number– Residential address– Employee number– Period employed– Income sources– deductions
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Unemployment Insurance Fundpg 141
• UI-19– Employee’s name– Surname– Personnel number– Identification number– Gross remuneration– Frequency of payment– Contribution amount– Commencement date– Termination date– Reason for termination
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Non-statutory requirementspg 141
• Employee’s:– Contract of employment– Curriculum vitae– Marital status– Number of dependants– Bank details
ICB Junior Bookkeeper: Payroll & Monthly SARS Returns
How & why records are keptpg 141 - 142
• Confidentially in safe, fireproof storage• Alphabetical order• File contains:
– CV– Certified copies of qualifications & degrees– Certified copy of identification– Bank details– Letter of appointment– Leave forms– Letters of increment– Medical aid membership– Pension fund– UIF
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Verification of datapg 142
• Verify information for accuracy• Check copies against originals• Checker must be checked• Discrepancies reported to line manager
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