Labour Relations Act, 1995 (Act No. 66 of 1995)NoticesBargaining Council for the Furniture Manufacturing IndustryExtension to Non-Parties of the Main Collective AgreementChapter 112. Leave Pay Fund |
| 12.1 | Every employer shall pay over monthly to the Council, on the specified form, by not later than the tenth day of the following month concerned in respect of every employee Leave Pay Fund contributions as prescribed in ADDENDUM 1. |
| 12.2 | Guarantees submitted in respect of Leave Pay Fund contributions: |
| 12.2.1 | Every employer who supplies the Council with an acceptable guarantee for the total of his assessed maximum annual commitments under this clause shall, without in any way limiting his liability towards his employees, be granted an exemption from making payment to the Council in the manner specified: provided that the exemption shall be subject to such terms and conditions made applicable thereto by the Council from time to time. |
| 12.2.2 | Every employer shall submit a monthly statement as specified in clause 12.1 above in respect of all his employees. Should the services of any employee be terminated during the month, a statement as prescribed together with the amount due in respect of Leave pay Fund contributions for the period employed between October of the current year and September the following year shall be submitted to the Council. Should the services of no employees be terminated during the month, the Council shall be notified on the specified form. |
| 12.2.3 | The employer shall submit to the Council not later than 10 November of each year a statement in the form prescribed reflecting all particulars of all employees who are in the employ of the employer as at 30 September who are to be paid by him in terms of this clause. |
| 12.2.4 | By not later than 23 December of each year, the employer shall submit to the Council a statement as prescribed reflecting the actual monies paid out in respect of the Leave Pay Fund monies to all his employees together with payment of monies not paid out. |
| 12.3 | Leave Pay Fund monies shall be paid by the employer to his employees between 7 December and 13 December of each year, failing which the employer shall pay a penalty equal to 1 month's interest of 15% per annum to the Council on the amount paid late to his employees. |
| 12.4 | Leave Pay monies received by the Council shall be paid by the Council to employees whose contracts of employment have been terminated during the course of a contribution year, within 2 months after such termination date. |
| 12.5 | If an employee receives his Leave Pay Fund monies between the 7th and the 13th of December and the employee is absent from his workplace immediately after payment has been received with no valid medical certificate, the specific employee will only be entitled to be paid his Leave Pay Fund monies on the last working day of the establishment's next annual closure date. |
| 12.6 | Leave Pay Fund monies shall be paid to the employee by means of electronic transfer to the employee's bank account or by Council cheque drawn in favour of the employee. |
| 12.7 | Administration of the Fund |
| 12.7.1 | The Leave Pay Fund shall be administered by the Council and all expenses incurred in connection with the administration of the Leave Pay Fund shall form a charge against the Council. |
| 12.7.2 | All monies paid to the Leave Pay Fund shall be invested as provided for in terms of section 53 (5) of the Act and any interest accruing from such investment shall accrue to the general funds of the Council in consideration of the Council's administration of the Fund. The Council shall keep a record of each employee in respect of whom payments are made in terms of this clause and the amount paid to the employee. |
| 12.7.3 | The Leave Pay Fund shall be paid to employees concerned to serve as Leave Pay. Each employee shall be paid Leave Pay monies equal to the amount deposited into the Leave Pay Fund in respect of him during the year ending on the last pay week of September each year. |
| 12.7.4 | Any employee employed continuously during the year from the first pay week in October of the previous year to the last pay week in September of the current year shall receive Leave Pay monies during December of that year of not less than two weeks' normal wages. Any shortfall shall be paid to the employees by the employer. |
| 12.7.5 | Leave Pay monies which remains unclaimed for a period of two years from the date on which they become payable shall accrue to the general funds of the Council: Provided that the Council shall be liable for payment from the Council's general funds of any Leave Pay monies due and claimed during a further period of three years after such accrual to the Council's general funds. Should the Council be dissolved within any or either of the periods mentioned herein, such monies shall finally accrue to the general funds of the Council three months after the date of such dissolution. However, if any claim for Leave Pay monies is proved successfully by an applicant while the Council is still in existence, it shall remain obliged to pay that Leave Pay monies. |