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

Notices

Bargaining Council for the Metal and Engineering Industries

Extension of the Consolidated Main Collective Agreement to Non-parties (for the period 1 July 2021 to 30 June 2024)

Part 2

5. Annexures

Annexure K - National Exemptions Policy

Criteria for Exemption

8. Labour Broker Fund Exemptions
Purchase cart Previous page Return to chapter overview Next page

 

8.1 Definition

Construction site is defined as:

 

(a) an area, excluding a manufacturing environment, where a structure (which may be, but is not limited to, a building, ship, plant, pipe line, or tower) is being erected or built; and/or

 

(b) an area where refurbishment of, or alterations to, an existing structure, plant etc. (as defined in 7.1(a) above) is being carried out; and/or

 

(c) an area where a plant is temporarily shut down for the purpose of overhaul, maintenance, alteration, upgrading etc.

 

8.2 All labour brokers employees engaged on “construction site” (as defined above) must receive death and disability insurance cover throughout the period of employment.

 

8.3 All labour brokers employees engaged on construction sites, whose contract/s with labour brokers together extend for a continuous period of twelve months or longer, must join, and contribute to, the Industry provident fund.

 

8.4 Irrespective of the length of their contract/s, all labour broker employees, engaged on construction sites, must be given the option of joining the Industry provident fund:
(a) the said employee must be given the option in writing, setting out the consequence, in respect of their wage, of joining or of not joining the Industry provident fund;
(b) the said employee must exercise his/her option and clearly indicate this in writing;
(c) should the said employee elect not to join the Industry provident fund, his/her wage must be increased by the employer contribution of 3%, which would have been paid to the fund less applicable administrative and death or disability insurance costs.

 

8.5 All labour broker employees, engaged on construction sites, and who are members of the Industry provident fund, must be given the option of withdrawing from the fund once his/her contract expires:

 

Such a labour broker employee should be entitled to the value of their own contributions plus those of the employer, less applicable administrative and death or disability insurance costs.

 

8.6 Exemptions

All labour brokers wishing to follow the procedure set out in Clauses 7.1 to 7.5 above, will be required to request exemption from the existing MEIBC retirement funding requirements:

 

(a) such exemption shall be granted for an indefinite period, until withdrawn by the MEIBC.

 

(b) in order to retain their exemption, individual labour brokers must have:
(i) a review of the degree of their adherence to the requirements of this proposal, completed by an independent auditor on a six monthly basis (January to June and July to December);
(ii) a satisfactory report (as detailed in Annexure 3) on the results of this review submitted by the auditor directly to the MEIBC, within two months of the above period ending.