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

Notices

National Bargaining Council for the Hairdressing, Cosmetology, Beauty and Skincare Industry

Extension to Non-parties of the Consolidated Main Collective Agreement

Areas

Area C

36. Sick Benefit Fund
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36.1 The Hairdressing Sick Benefit Fund originally established in terms of the Agreement published under Government notice No. R. 106 of 22 January 1960 (hereinafter referred to as the ("Sick Benefit Fund"), is hereby continued only for the Magisterial District of Durban, Inanda and Pinetown, for the purpose of:—
36.1.1 assisting members in regard to payment for medical services incurred by them or their dependents, as may be provided in the rules of the Sick Benefit Fund;
36.1.2 assisting members for whom salaries are prescribed in terms of this Agreement with sick pay benefits in respect of absences from work owing to illness and/or accident as may be provided in the rules of the Sick Benefit Funds;
36.1.3 taking such measures as the Council may deem necessary for the prevention of sickness and for the improvement and promotion of health amongst members and their dependents.
36.1.4 contracting with any medical practitioner, hospital, nursing home, convalescent home or other similar institution, person or authority in respect of medical services, and
36.1.5 meeting the cost of such arrangements and the medical expenses of members and their dependents as provided in the rules of the Sick Benefit Fund.

 

36.2 Save for registered Learners/Students membership of the Sick Benefit Fund shall be compulsory for all persons who are directly or indirectly engaged or employed in the Hairdressing Industry, unless an exemption is granted by the Council on the grounds of such persons providing adequate proof of membership with an alternative medical scheme which can provide benefits which are equal to or better than those as provided for in the Sick Benefit Fund, and is recognized by law.

 

36.3 The Sick Benefit Fund shall be managed by the Council in accordance with the rules which it may make from time to time and for this purpose the Council shall approve a set of rules which shall provide for the administration of the Sick Benefit Fund.

 

36.4 All moneys of the Sick Benefit Fund shall be administered, invested and paid out in accordance with the rules, a copy of which shall be available for inspection at the offices of the Council.

 

36.5 The Council shall appoint auditors to audit the books of account of the Sick Benefit Fund annually.

 

36.6 The Council shall review the Annual Financial Statements of the Sick Benefit Fund at the Annual General meeting of the Council, and shall then ratify any review of the contribution schedule to the fund.

 

36.7 The Employer shall deduct the appropriate contributions from the salary of the Employee, and shall pay such monies, together with the Employer contribution to the Council by the 7th (seventh) day of the month following the deduction.

 

36.8 If any amount which falls due in terms of this clause 36 or in terms of any other provision of this Agreement is not received in full by the Council by the 7th (seventh) of the month following as provided for, then the Employer shall be liable to pay a penalty calculated in respect for the Prescribed Rate of Interest Act on any contribution which remains unpaid.

 

36.9 Notwithstanding the above, failure on the part of the Employer to make the deductions of Employee's contributions which he is required to make, shall not absolve the Employer from having to submit the total amount of the Employee's contributions and his own contributions to the Council.

 

36.10 In the event of the expiry or cancellation of this Agreement, the Council shall continue to administer the Sick Benefit Fund until such time as it is liquidated or transferred to any other fund created for the purpose of providing medical service assistance to its members.

 

36.11 In the event of the Council being wound up or dissolved, the Sick Benefit Fund shall continue to be administered by a committee appointed for such purposes by the parties before the winding up or dissolution of the Council, which committee shall consist of an equal number of Employer and Employee representatives. In the event of such committee being unable to carry out its duties for any reason, the parties shall appoint a trustee or trustees to carry out the duties of the committee and such trustees shall have the same powers as the committee for this purpose.

 

36.12 In the event of there being no Council in existence at the time of expiry of this Agreement, the Sick Benefit Fund shall be liquidated by the committee or trustees appointed to manage the Fund.

 

36.13 In the event of the liquidation of the Sick Benefit Fund, the moneys remaining after payment of all claims against the Fund, including administration and liquidation expenses, shall be paid into the general funds of the Council. In the event of the Council having been wound up before the liquidation of the Sick Benefit Fund, the moneys remaining shall be distributed equally amongst the parties to the Council immediately prior to its dissolution.