Who takes the blame? The deduction is made in terms of a collective agreement, law (e.g. In the event the employer and employee do not reach consensus on the variation of contract, the employer may initiate retrenchment procedures if needed. UI19 and UI2.7 (completed by employer – choose option 17 on the UI19 document); UI19 and UI53 (completed by the employer); ID document of the deceased and the applicant. Read more about Employers not paying full salary must present balance sheet in court: Govt on Business Standard. This can be done by restructuring your salary so that a portion of your salary is paid to you as exempt income i.e. If the company needs to close as a direct result of COVID-19 and the employer cannot pay his employees for this period, the employer can apply for the ‘National Disaster Benefit’ from the UIF. This provision will only apply if that employee was not present in South Africa for a period exceeding 90 days during the tax year immediately preceding the date of arrival in South Africa. When can a deduction be made from my salary? When can a deduction be made from my salary? Legally, an employer cannot impose a pay cut upon its employees if they have an employment contract that sets out details of their salary entitlement. yes they can reduce your salary to anything down to minimum wage if they wish. Which platform businesses can be selected for this research? Good afaternoon. A contract can be varied relating to salary reduction, bonus waiver or reduction, compulsory use of annual leave during the lockdown period and so forth. Powered by the WageIndicator Foundation - Share and compare wages, understand Labour Laws and spot career opportunities. Access the latest information on: Are you looking for an old article in De Rebus? One of the measures that is designed to provide relief to employers and employees in South Africa is the COVID-19 TERS benefit. South African workers will still be entitled to payment, should their employer ask them to remain at home during this crisis. Salary & Benefits; Employee Benefit Schemes; Can my company take away my bonuses or benefits? Bates also advised that if an employer was considering reducing an employee’s salary or non-discretionary bonus, for example to cut costs, they would need to consult with the employee first and seek their agreement to the proposed changes. The MHA had passed an order on March 29 asking all employers to make payment of wages to their workers without any deduction for the period their establishments were under closure during the lockdown. Pursuant to your query, it may be noted that an employer affected by the precautionary measures taken to contain Covid-19 may choose to temporarily reduce the salary of … But, what they can't do is lower your salary without telling you in advance and you (the employee) must agree to it. This decision is therefore one the employees in questions will have to consent to. But if your company put you on unpaid leave during this time, or if you have been laid off temporarily - or if a company can only afford to pay a part of your salary - you may get a special payout from the UIF, as part of the Covid-19 Temporary Relief scheme, also known as the special Temporary Employee/Employer Relief Scheme (TERS). The law The law stipulates that employers … Money can only be taken off an employee’s salary if he agrees to it, or if the employer is legally obliged to do so. Employers may not deduct money from a worker’s pay unless: The worker agrees in writing to the deduction of a debt. R 6 730.56). If the employer does not have work for you they can retrench you but must follow the correct procedure. The Labor Contract Law does not provide for pay cuts due to an employee’s misconduct. Before the Covid-19 pandemic, South Africa’s economy and workforce were characterised by high levels of unemployment and income inequality. Use Caution When Cutting Exempt Employees’ Salary Complete our Salary Survey and Win a Wage! If there is no agreement, annual leave must be taken at a time determined by the employer in accordance with s 20. Employers must pay the employee’s deductions to benefit funds (pension, provident, retirement, medical aid, etc.). The forms can be submitted by e-mailing the application to the nearest UIF processing centre. Not have work for you they can reduce your salary to anything down minimum. Ters benefit for this research on: Are you looking for an old article in De Rebus workforce! 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