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 Collective Agreement in terms of Sec 32(2) of the LRA

Areas

Area D

36. Sick Benefit Fund
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36.1 The Fund known as the "Hairdressing Trade Sick Benefit Fund" (hereinafter referred to as the "Fund") established in terms of clause 23 of the agreement published under Government Notice 2455 of 14 December 1945, is hereby continued.

 

36.2 The object of the Fund is the provision of medical benefits to Employees, Working Employers, the dependents of Employees and continuation members hereinafter referred to as "members of the Fund" to whom this clause 36 applies, in the event of illness or injury.

 

36.3 The Sick Benefit Fund is compulsory and will only apply to all Employees in the Magisterial Districts of Cape, Wynberg, Simonstown and Bellville as those areas were constituted as at 24 July 1945, excluding all Beauty and Skincare categories.

 

36.4 In terms of this clause 36:
36.4.1 "combined contribution" means the sum total of the Employee and Employer contributions payable in respect of a particular job category;
36.4.2 "continuation member" means a person who was an Employee or working Employer in the Hairdressing Trade and who retired from the Hairdressing Trade after 15 (fifteen) years of continuous membership of the Hairdressing Trade Sick Benefit Fund;
36.4.3 "dependant" means the spouse, life partner or child, adopted child or family financially dependent on an Employee or working Employer in the Hairdressing Trade;
36.4.4 "medical practitioner" means a general practitioner, specialist, physiotherapist, psychologist, radiologist or pathologist;
36.4.5 "principal member" means an Employee, continuation member or working Employer or Rent-A-Chair or legal owner in the Hairdressing Trade in respect of whom the Fund receives a combined contribution.

 

36.5 The following contributions:
35.5.1 every Employee must contribute per month the Employee contribution specified in the Sick Benefit Fund Contribution Schedule;
36.5.2 every Employer must deduct per month from the wages of each Employee the amount referred to in this clause 36.5 and contribute per month the Employer contribution specified in the Sick Benefit Fund Contribution Schedule;
36.5.3 every working Employer who is a member of the Fund must pay R504.00 per month to receive benefits;
36.5.4 a child dependent under the age of 18 years must pay R90.00 per month and a spouse, life partner and adult dependents must pay R180.00 per month. No Employer contribution is payable in respect of dependents;
36.5.5 a continuation member must pay half the combined contribution to the Fund as is payable by the category of Employee (or Employer, as the case may be) in which the continuation member was employed immediately prior to retiring from the Hairdressing Trade.
36.5.6 every Employer must pay the amounts referred in this clause 36.5 to the Council before the seventh day of the next month.
36.5.7 the first contribution received by the Fund for a new member is deemed to be for the month in which it is received and not in respect of the month in which it was deducted.
36.5.8 an Employee or working Employer will only be entitled to claim benefits after the first contribution has been received and the Employee or working Employer has been accepted as a member of the Fund in accordance with clause 36.5.7.

 

36.6 A member of the Fund who has paid contributions for a continuous period of 12 months and takes maternity leave for a period not exceeding four months is exempt from paying her contributions for the duration of the period of maternity leave. Contributions for dependents must be paid for dependents to continue to be eligible to claim benefits.

 

Sick Benefit Fund Contribution Schedule

Job Category

Employee

Contribution

Rand Per Month

Employer

Contribution

Rand Per Month

Hairdresser, Qualified, First Year, Senior Barber, Stylist Manager and Manager

252.00

252.00

Non-Qualified Hairdresser, Operator, Experienced Receptionist, Entrance Hairdressing Assistant, Training Barber, and Junior Barber.

190.00

190.00

Cleaner, First Year Receptionist, Learner and Starting Barber

150.00

150.00

 

36.7 The following benefits will be applicable:
36.7.1 upon acceptance to the Fund by the Management Board, members are entitled to receive the following benefits—
36.7.1.1 Hospital and Nursing Home Fees: A maximum of R578.00 per day is paid at medical aid rates. Covers all in-hospital expenses including, attention by a medical practitioner, including the cost of x-ray examinations, operations, injections, specialists' investigations, anaesthetic fees, physiotherapy and/or human diathermy treatment, maxillofacial and oral surgical treatment. A medical practitioner must approve all treatment.
36.7.1.2 Theatre Fees: 80% of medical aid rates per claim.
36.7.1.3 Medicines: 100% per claim subject to a maximum benefit of R788.00 per year. Includes supplies on authority of a prescription signed by a general practitioner or specialists for medicines, drugs, ointments, bandages and lotions.
36.7.1.4 Self- Medication: R42.00 per prescription (excluding VAT), for all treatments except for vaginal treatments where the limit is R48.00 (excluding VAT) per prescription. The facility provides for self-medication of a specified range of ailments, with the professional guidance of a pharmacist. Only one ailment may be treated at a time and no ongoing treatment is allowed. The maximum medical aid price (mmap) and standard scheme exclusions apply to all self-medication prescriptions. Self-medication claims do not attract any levy. Medicines are supplied on request for a specific ailment and the facility may not be used for household stocks of the member.
36.7.1.5 Spectacles: R683.00 including one pair of lenses, one pair of frames and examination fees of an optometrist paid at medical aid rates, every two years, subject to a 12 month waiting period.
36.7.1.6 Dentistry: 100% of medical aid rates per claim subject to a maximum benefit of R1575.00 per year for all types of dentistry.
36.7.1.7 General Practitioners, specialists, physiotherapy, psychology, radiology, pathology and homeopathy: R6300.00 per annum paid at medical aid rates, subject to Fund's annual maximum overall benefit limit.

 

36.7.2 The maximum overall benefit limit for a principal member of the Fund is R12600.00 per annum from 1 January to 31 December.

 

36.7.3 The maximum overall benefit limit for a principal member of the Fund is increased by an amount of R6300.00 for each dependent, subject to no individual member being entitled to benefits in excess of R12600.00 per annum from 1 January to 31 December.

 

36.7.4 In cases of accidents, the Fund will only pay benefits not due for compensation under the Compensation for Occupational Injuries and Diseases Act, 1993, or Multilateral Motor Vehicle Accident fund Act, 1989.

 

36.7.5 A member of the Fund, who received the total amounts of benefits, is not entitled to receive any further benefits whatsoever from the Fund until 1 January of the following year.

 

36.7.6 A member must produce a certificate from a medical practitioner when claiming benefits.

 

36.7.7 A member's right to claim benefits will be ceased if no contributions are received.

 

36.7.8 A member of the Fund who becomes temporarily unemployed for a period not exceeding four months may continue as a member of the Fund and must pay only half the combined contribution payable by the category of Employee in which the member was employed immediately prior to becoming unemployed.

 

36.7.9 Every new member must complete the specified medical questionnaire to the satisfaction of the Management Board to be accepted as a member of the Fund.

 

36.7.10 The Management Board has absolute and entire discretion, without having to assign a reason therefore, to refuse any person as a member or continuation member of the Fund, to accept any person as a member of the Fund subject to the exclusion of certain benefits in respect of any illnesses determined by the Management Board or at any time to exclude any person from being a member of the Fund.

 

36.7.11 An Employee or working Employer will not be entitled to any benefits until accepted as a member of the Fund.

 

36.7.12 An Employee or working Employer who ceases, not due to unemployment or retirement, to be engaged in the Hairdressing Trade immediately ceases to be a member of the Fund.

 

36.7.13 A member of the Fund may at any time be requested by the Management Board to undergo an examination by a medical practitioner nominated by the Fund. If a member fails or refuses to comply with the request after seven days' written notice, the Management Board has the right to exclude the member from the Fund.

 

36.7.14 A member of the Fund, whilst in the Republic of South Africa but outside the magisterial districts covered by the Council is entitled in the event of illness or meeting with an accident to be reimbursed by the Fund (on production of proof of payments thereof) in respect of costs incurred in receiving benefits to which members are entitled to from the Fund.

 

36.7.15 A member of the Fund is not entitled to receive any benefits as set out in this clause 36 in the event of illness or meeting with an accident whilst outside the Republic of South Africa.

 

36.7.16 An Employee who is a dependent of a member of any other registered medical aid scheme is not required to contribute to the Fund

 

36.7.17 The following shall apply to finances and administration:
36.7.17.1 a Management Board must administer the fund and may delegate specific tasks to the executive committee.
36.7.17.2 the administration of the Fund must be in accordance with the provisions set out in this clause 36.
36.7.17.3 disbursements from the Fund must cease whenever the amount standing to the credit of the Funds falls below R60000.00 and the payment of further benefits must not recommence until the amount to the credit of the Fund has again reached the figure of R120000.00, when claims must be considered in the order in which they were received.
36.7.17.4 all monies paid into the Fund must be deposited in a special banking account opened at a bank or institution approved by the Council.
36.7.17.5 all cheques drawn on the Fund's account must be signed by the chairman or vice-chairman and Secretary of the Management Board, appointed by the Council.
36.7.17.6 surplus money in the Fund may be placed on deposit with an approved building society or bank or may be invested. However, sufficient money must be kept in liquid form to enable the Management Board to meet any claims on the Fund immediately it is called upon to do so.
36.7.17.7 all costs and expenses incurred in connection with the administration and liquidation of the Fund must be regarded as and form a charge against the Fund.
36.7.17.8 a public accountant and/or registered auditor must be appointed annually by the Council. The public accountant must audit the accounts of the Fund at least annually and not later than 28 February in each year prepare a set of financial statements for every period of 12 months ending 31 December. True copies of the financial statements, which must be countersigned by the chairman or vice-chairman of the Management Board must be available for inspection at the Council. Certified copies of the financial statements must be sent to the Registrar of Labour Relations of the Department of Employment and Labour.
36.7.17.9 in the event of the expiry of this agreement by the effluxion of time or cessation for any other cause, the Fund must continue to be administered by the Management Board 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 Fund was created or continued by a subsequent agreement. The Fund must be liquidated unless continued or transferred as aforesaid by an agreement entered into in terms of the Act within 12 months of the date of expiry of this agreement.
36.7.17.10 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 Labour Relations Act, 1995, the Management Board must, subject to the approval of the Registrar of Labour Relations, continue to administer the Fund. The members of the Board existing at the date on which the Council ceases to function or is dissolved will be deemed to be members thereof for such purposes. However, any vacancy occurring on the Board may be filled by the Registrar from Employers or Employees in the trade, as the case may be, to ensure equality of Employer and Employee representatives and of alternates in the membership of the Board. In the event of the Board being unable or unwilling to discharge its duties or a deadlock arising which renders the administration of the Fund impracticable or undesirable in the opinion of the Registrar, the Registrar may appoint a trustee or trustees to carry out the duties of the Board, and such trustee or trustees will possess all the powers of the Board for such purposes.
36.7.17.11if the Council is not in existence upon the expiry of this agreement, the Fund must be liquidated by the Board functioning at the time or the trustee or trustees, as the case may be, in the specified manner. If upon the expiry of this agreement the affairs of the Council have already been wound up and its assets distributed, the balance of the Fund must be distributed as provided for in the Labour Relations Act, 1995 as if it formed part of the general funds of the Council.
36.7.17.12 upon liquidation of the Fund the moneys remaining to the credit of the Fund after the payment of all claims against the Fund, including administration and liquidation expenses must be paid into the general funds of the Council.