Labour Relations Act, 1995 (Act No. 66 of 1995)

Notices

Motor Industry Bargaining Council  (MIBCO)

Main Collective Agreement

Division A : Provisions Applicable to all Establishments in the Industry

Clause 3 : Particulars of Employment and Remuneration

3.8 Payment of Earnings

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(1)All earnings due shall be paid either hourly, daily, weekly, fortnightly or monthly, depending on the contract of employment, as the case may be, in cash, cheque or by means of electronic transfer; Provided that if payment is made by cheque, it shall be made at a time which permits the cheque to be cashed on the day of payment.

 

(2)

(a)Earnings shall be paid on the day and at the time and place stipulated in the notice referred to in clause 9(d)(i) of the Administrative Agreement.
(b)The day referred to in paragraph (a) of this subclause shall be any day on which the employee concerned ordinarily works:

Provided that at the request of the employee and with the consent of the employer the employee may be paid on another week-day, ie excluding Sunday.

(c)The time referred to in paragraph (a) of this subclause shall permit all employees who are being paid in cash, being paid by not later than their normal stopping time.

 

(3)On the weekly or monthly pay-day referred to in subclause (2)(a) of this clause, all employees to whom the special circumstances referred to in subclauses (4) and (6) of this clause do not apply, shall be paid all the wages and all the allowances and/or commission other than leave pay accrued to them in respect of the week or month of employment just completed.

 

(4)Where an employee assumes or returns to duty and has worked less than three shifts immediately preceding the ordinary pay-day the employer may carry over the earnings for such shift(s) to not later than the following pay-day.

 

(5)The monthly earnings due to monthly paid employees shall be paid to them not later than the last working day of each calendar month: Provided that the commission on sales due to a motor vehicle salesperson shall not be calculated earlier than the 20th day of the month to which it relates and shall be paid by not later than the 7th day of the following month.

 

[NOTE: For the provisions applicable to Sector 6 (Dealers Sales and Distribution establishments) and Sector 7 (Automotive Parts, Accessories, Equipment and Tools establishments) in respect of this subclause refer to Clause 4 of Division D of this Agreement]

 

(6)Upon termination of employment, the employer shall pay an employee his earnings calculated up to the time and date of termination of services, on the date of such termination.

 

(7)An employer who wishes to change the day on which earnings are paid to his employees, shall notify his employees of his intention to change this day by displaying at least 14 days before the change takes place, a suitable notice in a prominent place on his premises.

 

(8)All earnings shall be handed to employees in sealed containers on which shall be reflected, or which shall be accompanied by a statement showing—
(a)the name of the employer;
(b)the full names of the employee;
(c)the date of payment;
(d)the period in respect of which payment is made;
(e)the number of ordinary and overtime hours worked and the earnings due;
(f)the number of hours worked on a Sunday and the earnings due therefore;
(g)details of any other earnings;
(h)details of any deductions which have been made;
(i)the amount enclosed; and
(j)any amount due as leave pay in terms of the Main Agreement unless such leave pay has to be sent in terms of that Agreement to the secretary of a Regional Council.

 

(9)No employee shall be required as part of his contract of employment to board and/or lodge with his employer or at any place nominated by the employer or to purchase any goods from the employer.

 

(10)Unless otherwise provided for in this Agreement, no deductions or set-off of any description, other than the following shall be made from the earnings which an employee would normally be entitled to receive:
(a)Where an employee is absent from work, other than on paid leave, a deduction proportionate to such absence calculated on the basis of the wage which such employee was receiving in respect of his ordinary hours of work at the time thereof: Provided that—
(i)where such absence is owing to a disablement or an illness falling within the scope of the Compensation for Occupational Injuries and Diseases Act, 1993, the deduction shall, in respect of the first week of absence, not exceed 70 per cent of the employee"s wage;
(ii)an employer may as a condition precedent to the payment of any amount in terms of proviso (i) require the employee to produce a medical certificate stating the nature and duration of the employee"s incapacity;
(b)holiday, insurance, provident and/or pension funds or medial aid schemes where these are not administered by a Regional Council or the Council, and where an employee through negotiations between himself and his employer agrees on the amount to be paid by the employee to accept board and/or lodging from his employer;
(c)tea, sports or similar clubs;
(d)purchases by employees from their employers;

Provided that in the case of Division B employees who are in receipt of remuneration, excluding commission on sales, in excess of—

in Area A –

from 7 February 2011 to 31 August 2011 – R126 912 per annum

for the period 1 September 2011 to 31 August 2012 – R138 324 per annum

for the period 1 September 2012 to 31 August 2013 – R149 736 per annum

in Other Areas

from 7 February 2011 to 31 August 2011 – R108 884 per annum

for the period 1 September 2011 to 31 August 2012 – R119 568 per annum

for the period 1 September 2012 to 31 August 2013 – R130 252 per annum

the deduction enumerated in subclauses (a) and (b), together with other similar deductions, may be made subject to the written consent of the employee only: Provided further that such deductions are not in conflict with any contract on commission work that exist between the employer and employee.

(e)traffic fines in cases where the guilty person has been identified beyond doubt; Provided that in the event of an employee being required to drive an unroadworthy or unlicensed vehicle, such fines shall be excluded;
(f)Deductions in terms of damage to vehicles or property in terms of Clause 9(3) of Division A of this Agreement: Provided that the maximum deduction may not exceed 30% of an employee’s weekly/monthly earnings;
(g)Deductions or set-off upon termination of employment from all moneys owing to an employee except pension and/or provident funds in respect of loans in terms of a signed acknowledgment of debt;

Provided further that it would not be necessary to obtain the Regional Council or the Council’s consent for deductions other than those enumerated above, if:

(i)deductions otherwise comply with this clause;
(ii)the employee signs a standard Council acknowledgment of debt;
(iii)the amount of the deduction is limited to 30% of the earnings, excluding statutory deductions; and
(v)a copy of the acknowledgment of debt is given to the employee.

 

(11)Every employee shall, if so required by his employer, upon receiving payment of his earnings, acknowledge receipt thereof in writing.

 

(12)If an employer, owing to clerical or accounting or administrative error, or miscalculation, pays an employee any remuneration or leave pay in excess of the amount legally payable, the employer shall be entitled to recover the amount of the overpayment by deduction from subsequent wages or earnings or leave pay, subject to the following conditions:
(a)The deductions may be made from one or more payments of earnings or leave pay, but no one deduction may exceed 20 per cent of the payment from which it is deducted;
(b)no such deduction shall be made unless the employer, in writing, notifies the employee at the time of the first deduction, and the Council within seven days of the first deduction, of the circumstances under which the overpayment was made, the amount thereof, and the amount of the proposed deduction or deductions.