This is to inform you of an important change to South African employment thresholds coming into effect on April 1, 2024.
What is changing?
The annual earnings threshold set by the Minister of Employment and Labour will increase from R241,110.59 to R254,371.67. This means some employees may be exempt from certain employment regulations.
How does this impact your business?
This adjustment affects the application of several key employment laws, including:
Basic Conditions of Employment Act (BCEA): Employees earning above the threshold may be exempt from regulations concerning standard work hours, overtime pay, and certain leave provisions.
Labour Relations Act (LRA): These employees may not be considered as "deemed" employees for LRA purposes if hired through temporary employment services. Additionally, fixed-term contract limitations might not apply to them.
Employment Equity Act (EEA): Employees exceeding the threshold may have limited options for resolving unfair discrimination disputes through the CCMA arbitration process.
What do you need to do?
Review the salaries of your employees to determine if any fall above the new threshold.
If you have employees exceeding the threshold, assess how their employment conditions might be affected by these changes.
We recommend consulting with our EE department to ensure compliance with all relevant regulations.
Important Notes:
"Earnings" for calculating the threshold refers to annual salary before deductions like tax and pension contributions. Employer contributions are not included.
Subsistence allowances, performance bonuses, and overtime pay are not considered part of the "earnings" for threshold purposes.
We are here to help!
If you have any questions or require further assistance regarding these changes, please do not hesitate to contact us.