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

Notices

Bargaining Council for the Civil Engineering Industry

Extension of Consolidated Exemptions Collective Agreement to Non-parties

5. Exemptions - Remuneration and Benefits
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(a)Further to the provision of clause 4 above the following provisions will also be applicable to remuneration and benefits related exemptions.

 

(b)Remuneration and benefits exemptions may not be granted beyond the expiration of the Collective Agreement.

 

(c)Application for exemption from the clauses in the Collective Agreement relating to the payment of the minimum wages, year-end bonus, or any other remuneration and/or benefit/s will be dealt with after considering the following and providing clear evidence of financial difficulties as follows:
i.In the case of companies whose public interest score for the particular financial year was at least 100 or more, the company must submit, Three Years (3) Audited Financial Statements (Income Statements , Statement of Financial Position, Cashflow Statements, Statements of Changes in Equity and Notes) that must be reviewed by;
(a)a registered auditor, or a member in good standing of a professional body that has been accredited in terms of section 33 of the Auditing Professions Act.
ii.In the case of companies whose public interest score for the particular financial year was less than 100, Three Years (3) Financial Statements that must be independently reviewed by;
(a)A person contemplated in paragraph (a) above or;
(b)a person who qualified to be appointed as an accounting officer of a close corporation in terms of section 60(1), (2) and (4) of the Close Corporations Act.
ii.The independent review must not be carried out by a person who was involved in the preparation of the said financial statements;
iii.Management Accounts (Income Statements, Statement of Financial Position, Cashflow Statements, Statements of Changes in Equity and Notes) must be included covering the period (to one month prior to date of application) not covered by the audited or independently reviewed financial statements;
iv.A detailed explanation of the difficulties being faced by the company and why they should be addressed by means of an exemption as opposed to any other alternative;
v.In case of an application for exemption from payment of minimum wages, a business plan which includes a timetable setting out how and when the applicant expects to 'catch-up' with the minimum wage rate of the industry;
vi.A detailed explanation (breakdown) of the cost/financial value of the intended exemption.
vii.For a detailed calculation of public interest, refer to Regulation 26(2) of the Companies Act.

 

(d)The proposed exemption should be implemented by the applicant until the exemption process has been concluded after which any adjustments must be applied retrospectively from the date of the application of the agreement.