Holiday Fund in line with Clause 15 in Part 1 of this Agreement shall be calculated as follows.
| (1) | 12.5% of the employees' remuneration : Provided that— |
| (a) | the first and last working week of each calendar year shall be calculated at the actual number of ordinary hours worked in the establishment; and |
| (i) | during the first week of commencement of employment, Holiday Fund shall be calculated in the same manner as in (i) above; |
| (ii) | in the event that an employee has worked 44 hours and more in any one week, Holiday Fund shall be calculated on the actual ordinary as well as overtime hours worked; and |
| (iii) | where an employee is working in an establishment that works as ordinary hours, less than 44 hours a week, Holiday Fund shall be calculated as if such employee had worked 44 hours in any one week; |
| (iv) | if an employee has worked up to half an hour less than the aforesaid hours, Holiday Fund shall be calculated at 44 hours; and |
| (v) | in the case of a casual employee, the employer shall pay him upon termination of employment, leave pay calculated at 12,5 per cent of the wages earned by him; and |
| (vi) | in the case of a working partner, director or member, Holiday Fund shall be calculated at 12,5 per cent of the highest prescribed rate in Part 2 Annexure A to this Agreement. |
| (b) | 10% of the employees' remuneration if he has worked less than 43,5 hours in any one week. |
| (c) | 7.5% of the employees' remuneration if he has worked less than 40 hours in any one week. |
| (2) | In the event that an employee is off due to illness, Holiday Fund shall be calculated as prescribed in Part 2, Annexure A of this Agreement; Provided that— |
| (a) | a valid sick certificate is produced; and |
| (b) | days off sick have not exceeded 30 days in any one year commencing in January and ending in December of each year. |
| (3) | In the event that a paid public holiday falls within a normal working week, Holiday Fund shall be calculated in accordance with sub-clause (1)(a) above. |
| (4) | All amounts payable in terms of Holiday Fund, shall be paid by the employer. |
| (5) | Payments shall be made month by month and not later than the 10th day of each month following. |
| (6) | All payments in respect of Holiday Fund, shall be made to the Secretary of the Council for deposit into the Furniture Manufacturing Industry, KwaZulu-Natal Holiday Fund. |
| (7) | Any payment in terms of Sub-Clause 6 above, shall be in the prescribed form as specified by the Council from time to time. |
| (8) | Arrear payments : An employer that is in arrears with his Holiday Fund payments and who, after being warned in writing by the Council, fails to forward such outstanding amounts within seven days of the date such notice was issued, shall by further notification submit the amounts payable in terms of this clause weekly, subject to the following: |
| (a) | The weekly amounts to reach the Secretary of the Council no later than the Friday following the pay day of the week in terms of which the amounts are due. |
| (b) | The payment submitted in respect of the last pay day of each calendar month, shall be accompanied by the statement as referred to under sub-clause (7) above. |
| (c) | An employer to whom the provisions of this sub-clause has been applied, may only revert to monthly payments after being duly notified by the Council in writing. |
| (d) | Interest : Should any amount due in terms of this Clause not be received by the Secretary of the Council by the 15th day of the month following in which the monies are payable, the employer shall pay interest on such amount or on the lesser amount as remains unpaid, calculated at: |
| (ii) | at the prevailing prime overdraft rate of First National Bank, whichever rate is the higher, per month or part thereof from the 15th day until the day upon which payment is actually received. |
| (9) | The Council shall be entitled in its absolute discretion to waive payment of such interest or part thereof. |
| (10) | Holiday Fund payable in terms of this Clause shall be paid by the employer in addition to any remuneration payable to an employee in terms of this Agreement and shall not be deducted from the remuneration of such employee. |
| (11) | The Council shall retain a record of each employee of whom payments are made to the Holiday Fund in terms of this Clause, as well as the amount paid on his behalf. |
| (12) | Holiday Fund shall be distributed to employees as follows: |
| (a) | Distribution shall not commence earlier than the first Monday in December; and |
| (b) | shall be completed by the 15th day of December, the amount shall be; |
| (i) | the amount contributed by the employer in respect of such employee during the year ending on the last pay day in September of each year. |
| (ii) | the validation slip issued to employees, shall reflect the leave pay and bonus portion separately. |
| (iii) | Employees who are absent on the first day after the payment of leave pay or bonuses in the month of December, prior to the annual shut-down, without a valid sick certificate. shall be paid his leave pay and / or bonus on the last day before going on annual leave from the following year onwards, provided that the employer forward a list of names and benefit numbers to the Secretary of the Council by no later than the month of August of each year. |
| (13) | Learners : If a learner receives holiday pay in terms of this Clause, less than the remuneration he would have received had the establishment not closed and he had worked the ordinary hours of work during the leave period, the employer shall pay him in addition an amount equal to the difference between holiday pay received and the amount he would have earned had he worked. |
| (14) | Unclaimed Holiday Fund: in the event that Holiday Fund monies remain unclaimed, the following shall apply: |
| (a) | if unclaimed for a period of 2 years from date it became payable, such unclaimed monies shall; |
| (i) | accrue to the general fund of the Council : Provided that the Council shall be liable for payment from the general fund of any Holiday Fund monies claimed during a further period of 3 years after accrual to the General Fund; |
| (15) | The Holiday Fund shall be administered by the Council; and |
| (a) | All expenses incurred in connection with such administration shall form a charge against the Council. |
| (b) | All monies paid to the Holiday Fund shall be deposited in a bank account to be opened in the name of the Fund. |
| (c) | Payments from the Holiday Fund be either by; |
| (i) | cheque drawn on the Funds' account and duly signed by two persons as authorised by the Council's Constitution; or |
| (ii) | by electronic transfer. |
| (d) | Monies contributed to the Holiday Fund may be invested in; |
| (ii) | on call with a registered commercial bank. |
| (e) | Interest accruing from such investment shall be credited to the general fund of the Council. |
| (16) | Audit : The Council shall appoint a public accountant for the purpose of; |
| (1) | auditing the accounts of the Holiday Fund: Such audit shall— |
| (a) | commence as soon as possible after 30 June of each year; the Secretary of the Council shall— |
| (b) | prepare an account of income and expenses of the Fund for the preceding 12 months as well as a statement reflecting the Funds' assets and liabilities; which |
| (c) | shall be audited by the public accountant; and |
| (d) | signed by the Secretary and Chairperson of the Council. |
| (e) | copies of the signed accounts and any management reports shall thereafter lie for inspection at the offices of the Council. |
| (f) | copies of the said accounts together with any management report shall be forwarded to the Registrar of Labour Relations as contemplated by Section 54 of the Act. |
[Part 2 Annexure A(5) substituted by section 3 of Notice No. R. 3666 of GG48959, dated 14 July 2023]
