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

Notices

Motor Industry Bargaining Council  (MIBCO)

Extension to Non-Parties of the Main Collective Agreement

Division A

Clause 5: Leave

5.1 Annual Leave and Accrued Leave Pay

(9) Accrued Leave Pay
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(a)An employee who is discharged from or leaves his employment before he has qualified for annual leave in terms of sub-clause (2) of this clause shall be entitled to accrued leave pay equivalent to three fifty-seconds of one week's remuneration for each completed span of employment from the date of beginning work with the employer or from the date on which his last leave became due, whichever is the later. For the purposes of this sub-clause, "span" means the number of shifts normally worked by the employee in a week.

 

Note: Accrued leave pay is calculated by multiplying three weeks’ wages by the fraction of a year worked, thus—

 

for six months' employment, leave pay is ½ x times three weeks' pay;

for 13 weeks' employment, leave pay is ¼ x times three weeks' pay;

for five weeks' employment, leave pay is 5/52 x three weeks' pay.

 

To arrive at three weeks' pay for a monthly-paid employee, multiply the monthly pay by 9/13. Thus for a monthly-paid employee the leave accrued in—

 

six months is ½ x 9/13 x one month’s pay;

13 weeks is ¼ x 9/13 x one month's pay;

five weeks is 5/52 x 9/13 x one month’s pay.

 

(b)In the case of a motor vehicle sales person and supply sales person accrued leave pay shall be calculated on the basic wage plus average commission on sales earned over the preceding 52 weeks, or accrued in respect of the number of complete weeks actually worked should the latter period be less than 52 weeks.

 

(c)Accrued leave pay held by an employer on behalf of an employee who for health reasons or any other incapacity has become unable to continue with his occupation shall become payable immediately to the employee, and accrued leave moneys due to an employee who dies in the course of his employment shall become payable immediately to his estate.