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2003 is flying past.
We have already passed the first quarter of the year and so far
it has been a very eventful year for the country and for the
World. If the media is to be believed, we are in for some
uncertain times.
Despite all this,
the future for South Africa is looking better than it has done
for some years and it is good to hear South Africans say that
they feel safe here and perhaps the decision to stay was a good
one.
Connold and
Associates has grown over the last year and we welcomed Jenny de
Villiers and Brent Lombard to our team. Sasha is taking a short
break and is the proud mother of Luca.
UNEMPLOYMENT
INSURANCE FUND
As everyone should
know, domestic workers have to be registered for Unemployment by
31st March 2003, extended to 30th April 2003, because the Fund
could not cope with the applications being received. The first
payment should be made by 7th May 2003.
We have been
receiving a number of calls with regard to the requirements to
register and these are some of the issues that commonly are
discussed.
Do I have to pay for
a domestic worker who only works for one day a week?
The Act says that
you should pay UIF for a domestic worker who works more than 24
hours a month. It should be remembered that UIF covers
unemployment benefits, ill health benefits, maternity benefits,
adoption benefits and dependents’ benefits in the case of death.
Fairness would then dictate that UIF should be paid for a person
who is employed on a continuous basis, e.g. every Monday.
Presumably the worker has other employers who should also
contribute on his/her behalf.
Is there a maximum
age for paying UIF contributions?
No, however, you may
not contribute to UIF if you are receiving a Pension from the
Department of Social Welfare. This provision does not apply to
other pension or provident funds.
How do I treat
accommodation and food in terms of contributions?
Contributions should
include remuneration in payment or in kind for food and
accommodation. These are valued at 10% of the salary earned.
Remuneration excludes payment for pensions, annuities or
commission payments.
What about the
domestic worker who is not South African?
If the worker has a
residence permit or valid work permit, UIF must be paid.
Must the domestic
worker contribute as well?
Yes, it is illegal
to contribute on behalf of an employee.
If you have any
other questions, please contact us, and if we cannot answer
them, we will contact the UIF office for information.
INCREASE IN UIF
There will be an
increase in the maximum rate of earnings to the Unemployment
Insurance Fund with effect from 1 April 2003. This means that
those employees who earn more than R106 032-00 per annum will
contribute an amount of R88-36 per month instead of R80-99 per
month and the employer must contribute an equal amount.
Employees earning below this amount will contribute 1% of actual
earnings. Remember that in calculating UIF, payments for
commission are excluded.
INCREASE IN EARNINGS
THRESHOLD DETERMINATION
This was also
increased with effect from 1st April 2003. The new threshold is
R115 572-00. This amount has relevance to Chapter 2 of the Basic
Conditions of Employment Act, with specific reference to
Interpretation of Day, Ordinary Hours of Work, Overtime,
Compressed Working Week, Averaging the Hours of Work,
Determination of Hours of Work, Meal Intervals, Daily and Weekly
Rest Period, Pay for work on Sundays, Night Work and Public
Holidays. Section 6(3) states,
“The Minister must,
on the advice of the Commission, make a determination that
excludes the application of the Chapter, or any provision of it,
to any category of employees earning in excess of the amount
stated in the determination.”
SECTORIAL
DETERMINATIONS
Four Sectorial
Determination has been promulgated since August 2002.
These are :
Sectorial Determination 3 - Private Security Sector
Sectorial Determination 7 - Domestic Workers Sector
Sectorial Determination 8 - Farm Workers Sector
Sectorial Determination 9 - Wholesale and Retail Sector
Each legislates on
the working conditions for that Sector and legislates minimum
wages for the sector. Although generally the provisions are
similar to the Basic Conditions of Employment, there are
conditions specified which are peculiar to that sector and
certain provisions which are more generous that the Act. For
example, Family Responsibility leave for domestic workers is
five working days and not three.
We have prepared a
summary of the key points for the Domestic Worker Determination,
and will forward a summary of the Agricultural and the Wholesale
and Retail Determinations to clients in those industries. Should
anyone else be interested in receiving the summaries, please
contact Lynette at our office, or e-mail a request to us. |
