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

Notices

Bargaining Council for the Building Industry, Bloemfontein

Extension of Collective Agreement to Non-Parties

11. Holiday Fund
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(1) The purpose of the Holiday Fund is to provide eligible employees with leave pay for the period of annual leave as set out in terms of clause 7(5)(a).

 

(2) The Building Industry Holiday Fund (hereinafter referred to as the "Holiday Fund", established in terms of the Agreement published under Government Notice 1926 of 20 November 1959, is continued by this Agreement.

 

(3) An employer shall contribute and pay to the Council an amount of 15 working days' wages. An additional three weeks bonus will be added. It will all form part of the employer's weekly contributions to the Holiday Fund. One (1) week incentive bonus will be paid to an employee who has worked six (6) months and longer without being absent any day except in case where the employee can produce a sick certificate for every consecutive week. This amount must be paid directly by the employer to the employee.

 

All public holidays inclusive of those to fall within the builder's annual holiday period shall be paid directly by the employers to the employees.

 

(4) The amounts paid to the Council in terms of subclause (3) shall be paid by the Council into a special Holiday Fund account and the Council shall invest the amounts to the credit of the Holiday Fund from time to time with a bank or recognised financial institution. Any interest accruing from such investments shall be the sole property of the Council as compensation for the administration of the Holiday Fund.

 

(5) Notwithstanding the provisions of subclause (4) the employers' organisation(s) concerned shall be entitled to all interest earned on payments made by the members of their organisation(s), which interest shall after the completion of a proper audit, and after the deduction of a 5% collection and administration fee by the Council, be paid annually by the Council to the employers' organisation(s).

 

(6) Claims submitted for payment of an employee's holiday benefits later than six months after the date as set out in subclause (8) hereof, shall be accompanied by written reasons for such late claim.

 

(7) After payment of all claims against the Holiday Fund, including administration expenses, all the monies remaining to the credit of the Fund, including unclaimed Holiday Fund benefits, shall be paid into the general funds of the council after a period of six months. Claims received after six months shall, however, still be considered.

 

(8) The Council shall pay such holiday fund benefits to which the employee becomes entitled by means of a cheque or direct into their bank accounts on a date to be decided by the Council, but not later than the day prior to the commencement of the holiday period. No. order or authority for payment to a third party shall be recognised, unless authorised by the employee in writing.

 

(9) An employee shall not be entitled to claim for any holiday benefits prior to the day prescribed in subclause (8) hereof. The Council shall, however, have the right to authorise such payment if in its discretion it is considered advisable to do so. In the case of the death of an employee, the amount due to him from the Holiday Fund shall be paid to his beneficiary or estate by cheque drawn in favour of such beneficiary or estate, upon the employee's registration card being lodged with the Council.

 

(10) In the event of the expiration of this Agreement by effluxion of time or cessation or for any other reason, the Holiday Fund shall continue to be administered by the Council until it is either liquidated or transferred by the Council to any other fund constituted for the same purpose as that for which the original Holiday Fund was created.

 

(11) In the event of the dissolution of the Council or in the event of its ceasing to function during any period in which this Agreement is binding in terms of the Act, the Registrar of Labour Relations may appoint a committee from employers and employees in the industry on the basis of equal representation on both sides, and the Holiday fund shall continue to be administered by such committee. Any vacancy occurring on the committee may be filled by the Registrar from employers or employees, as the case may be, so as to ensure an equality of employer and employee representatives on the committee. In the event of the committee being unable or unwilling to discharge its duties or in the event of a deadlock that renders the administration of the Holiday Fund impracticable or undesirable in the opinion of the Registrar, he may appoint a trustee to carry on the duties of the committee. Such trustee shall possess all the powers of the committee for such purpose. If there is no Council in existence upon the expiration of this Agreement, the Holiday Fund shall be liquidated by the committee or the trustee, as the case may be, in a manner set forth in the Act, and if upon the expiration of the Agreement the affairs of the Council have already been wound up and its assets distributed, the balance of this Holiday Fund shall be distributed as provided for in the Act as if it formed part of the general funds of the Council.