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Basic Conditions of Employment Act, 1997 (Act No. 75 of 1997)

Sectoral Determinations

Sectoral Determination 14 : Hospitality Sector, South Africa

Part B : Minimum Wages

3. Commission work


(1) An employer and employee may agree in writing that the employee will perform commission work on a regular basis.


(2) An employer must pay an employee the rates applicable for commission work as agreed to, provided that irrespective of the commissioned earned; the employer shall pay such employee not less than the prescribed minimum wage for the period worked.


(3) An agreement to perform commission work in terms of this clause must be concluded before the work commences and must include—
(a) the employee's wage and rate;
(b) the basis for calculating commission;
(c) the period over which the payment is calculated which may not be longer than one month;
(d) when the employer must pay the commission to the employee which may not be longer than seven days after the end of the period in which the commission is earned; and
(e) the type, description, number, quantity, margin, profit, or orders (individual, weekly, monthly or otherwise) for which the employee is entitled to earn commission.


(4) The employer must supply the employee with a copy of the agreement to perform commission work.


(5) If during any calculation period the employee does not earn an amount equivalent to at least the prescribed minimum wage, excluding any gratuity or gift received from a customer for service rendered, because of any act or omission by or on behalf of the employer or the employer has restricted the employee's ability to earn commission in terms of the agreement, the employer must pay the employee at least the applicable minimum wage as prescribed.


(6) An employer who intends to cancel or amend the agreement entered into relating to commission work which is in operation or the rates applicable thereunder, shall give the affected employee not less than four weeks notice of such intention.