New Picketing Regulations

New Picketing Regulations

National minimum wage | Effective 01 January 2019

On Friday, 07 December 2018, President Cyril Ramaphosa announced that the long awaited National Minimum Wage would come into effect on 01 January 2019.

Labour Minister Mildred Oliphant said the minimum wage will not replace the minimum wages that have already been agreed to, through the collective bargaining agreements.

“The national minimum wage will only replace the minimum wage in the sector if that minimum wage is less than the national minimum wage”. This does not extend to domestic and farm workers.

Employers are therefore advised to evaluate their current remuneration practices and ensure that they are aligned with the minimum rate of R20.00 per hour.

Increase in minimum wage for domestic workers

With effect from 03 December 2018, employees within the Domestic Worker Sector will receive an increase in respect of their minimum wages.  As the domestic worker sector earns below the proposed national minimum wage (which will come into effect from 01 January 2019), this sector will undergo a transitional phase in order to better align with the National Minimum Wage.

Employers are advised to familiarise themselves with the attached wage rate revisions.

Domestic Worker Wages 2018

Employment Equity Reports 2018 | 15 January 2019 (Online deadline)

In terms of S1 of the Employment Equity Act, a designated employer is an employer who employs 50 or more employees or an employer who employs less than 50 employees, but has a total annual turnover that is equal to or above the annual threshold specific to the relevant sector. Schedule 4 of the Employment Equity Act provides the threshold breakdown.

S20 and S 21 of the Employment Equity Act, states that a designated employer must prepare and implement an employment equity plan, and submit a report once a year to the Director General.  Designated employers that do not comply with the manual submission deadline of 01 October 2018 and/or online submission deadline of 15 January 2019 could be liable for a minimum fine of R1 5 million or 2% of the employer’s annual turnover (whichever is the greater).

Should you need assistance in respect of the formulation of your EE plan and report, do not hesitate to contact our offices directly.