Labour Relations Act, 1995 (Act No. 66 of 1995)NoticesNational Bargaining Council of the Leather Industry of South Africa:Footwear SectionCollective Agreement12. General Employer Obligations |
| 12.1 | Insurance of Wages |
| (1) | An employer shall be insured with a registered insurance company against the loss of wages by employees due to fire and/or flood to the amount of one week’s wages for all his employees. |
| (2) | An employer must be able to provide proof to the Council of such insurance in the form of a certificate from the insurance company within 14 days of being requested to do so by the Council. |
| (3) | An employer may, in place of an insurance policy, choose to lodge an amount equal to one week’s wages for all his employees with the Council. |
| (4) | The Council shall invest such money and all interest shall accrue to the general funds of the Council. |
| (5) | In case of an event foreseen in (1) occurring, the Council shall pay the money over to the employees concerned. If the money is not paid over it shall remain the property of the employer. |
| (6) | Where employees are deprived of an income due to fire and flood, they shall be paid for the time lost as a result or one week’s wages, whichever is the least. |
| 12.2 | Guarantee: Leave Pay and Contributions |
| (1) | An employer shall provide the Council with a bank guarantee in the form of Annexure C or a certificate from an insurance company that security exists for payment of the following: |
| (a) | The leave allowance and holiday bonus for all his employees as provided for in this Agreement; |
| (b) | Four weeks’ levies and contributions in respect of: |
| (i) | Levies to the Council in terms of the Administration Expenses Agreement; |
| (ii) | Sick Fund contributions in terms of the Sick Benefit Fund Agreement. |
| (iii) | Provident Fund contributions in terms of the Provident Fund Agreement; |
| (iv) | Supplementary Sick Fund contributions in terms of the Supplementary Sick Fund Agreement; |
| (v) | Technological Fund contributions in terms of the Technological Fund Agreement; |
| (vi) | Trade Union subscriptions in terms of Clause 11.1 of this Agreement. |
| (2) | An employer shall provide such guarantee within fourteen (14) days of the Council’s request to do so. |
| (3) | Where the guarantee is in excess of or insufficient to cover the above payments the employer may reduce the amount of the guarantee or shall be required to increase it on demand by the Council. Such variation shall not be permitted more often than every six months. |
| (4) | Where an employer does not pay any amounts in the instances mentioned in (1) where such amounts have become due, the Council may, in its sole discretion, utilise the guarantee lodged with the Council to pay the employees or trade union, as applicable or pay the money into the particular fund. |
| (5) | The parties shall be entitled to amend the provisions of this clause by agreement in terms of clause 17. |
| (6) | Employers who are not in arrear with any of the levies, contributions and trade unions subscriptions as mentioned in subclause (1)(b) for a period of less than sixty (60) days, and provide a written undertaking by no later than 31 October of the calendar year that they will honour their leave pay and bonus obligations, will not be required to submit a leave pay guarantee in terms of subclauses (1) and (2). |
| 12.3 | Monthly Statistical Returns |
| (1) | Every employer shall forward monthly statistics on production and employment to the Council. |
| (2) | This shall be done by the 7th of every month on the prescribed form and sent to The General Secretary, PO Box 3959, North end, Port Elizabeth, 6056. |
| 12.4 | Interest on Arrear Wages |
| (1) | Where an employer does not pay the wages as prescribed in this Agreement, such arrear amounts shall draw interest at a rate determined by the Council, but subject to the Usury Act. |
| (2) | Interest shall be calculated from the date that payment became due until the date that payment is received by the Council. |
| (3) | The Council, in its sole discretion, may waive the right to charge interest. |