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Threshold Earnings increased (Basic Conditions of Employment Act) as of 1st July 2011

May 19, 2011

Effective 1 July 2011, the threshold earnings for employees who are exempted from certain provisions of the Basic Conditions of Employment Act (BCEA) (e.g. paid overtime) will be increased from R149 736 per annum (= R12 478 per month)  to R172 000 per annum (= R14 333.33 per month).

Employees who earn above this threshold are excluded from certain sections from chapter 2 of the BCEA: for example, sections (9) Ordinary hours of work, (10) Overtime,  (15) Daily & weekly rest periods, (16) Pay for work on Sundays, (18) Public holidays.

Employees earning below the threshold amount, have the full protection of every section of the BCEA. However, those earning above the threshold amount, do not have a legal right to demand anything in respect of the sections listed above. In turn, the employer cannot demand that employees earning over the threshold  must, for example, work unlimited overtime, for no extra pay. The employer and employee must negotiate and agree on working hours, overtime, and work on Sundays and public holidays; and remuneration in respect of working outside of normal hours.

When employing someone who will earn above this threshold; it is therefore advisable to discuss and agree on working hours, remuneration (if any) for any overtime and work on Sundays and public holidays; and to include these conditions in the employment contract.

Please do not hesitate to contact us for further information.

Reminder: you can download a summary of the BCEA from the Resources page of our website  www.hrbalance.co.za .

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