Newly established establishments who employ no more than a total of 10 employees (including employees involved in activities other than furniture, bedding and upholstery manufacturing activities e.g. administration, sales, marketing, etc), may apply for the following phasing in concession, provided that their employees agree thereto. The establishment concerned shall then be prohibited from making use of a Newly Employed Employee Concession for any of its employees as per clause 8 hereunder until the expiry date of Phase 3 of the Newly Established Small Employer Concession or the cancellation of the establishment's Newly Established Small Employer Concession:

PHASE ONE: First year of registration until the end of the first September following registration

During this period the employer shall be exempted from prescribed minimum hourly rates of pay, subject to no employee being paid less than the national minimum hourly rate of pay, Leave Pay Fund contributions, Holiday Bonus Fund contributions, Provident Fund contributions and either of the Sick Benefit Society contributions, if applicable, as prescribed in ADDENDUM 1. Employees may be remunerated at their current rates of pay and wage increments may be negotiated between employer and employee(s).

All other provisions of the Agreement shall remain applicable, including the following:

Any accumulated leave pay benefits accrued by the employees prior to October of the first year of registration must be paid out by the employee's employer to the employee in terms of the Basic Conditions of Employment Act, 1997 (Act 75 of 1997)(as amended), when due. The following fees, levies and contributions shall be payable as prescribed in Addendum 1.

PHASE TWO: October of the second year of registration to the end of September of the following year

During this period the employee(s) shall be remunerated at their current rates of pay, subject to no employee being paid less than the national minimum hourly rate of pay and wage increments may be negotiated between employer and employee(s). In addition to the fees, levies and contributions payable to the Council in Phase One, the following contributions shall become payable to the Council as prescribed in Addendum 1.

PHASE THREE : October of the third year of registration to the end of September of the following year

During this period the employee(s) shall be remunerated at not less than 75% of the prevailing minimum hourly rates of pay, as prescribed in Addendum 2 or Addendum 3, subject to no employee being paid less than the national minimum hourly rate of pay. In addition to the fees, levies and contributions payable in Phases One and Two, the following contributions shall become payable as prescribed in Addendum 1:

PHASE FOUR: As from October of the fourth year of registration

All the provisions of the prevailing Agreement administered by this Council shall become applicable, including the payment of 100% of the minimum hourly rates of pay, subject to no employee being paid less than the national minimum hourly rate of pay, as prescribed in ADDENDUM 2 or ADDENDUM 3 and the payment of either of the Sick Benefit Society contributions, if applicable, as prescribed in ADDENDUM 1.

In the event of an establishment employing in excess of 10 employees at anytime, all the provisions of the prevailing Collective Agreements including wages at no less than 100% of the prevailing minimum prescribed hourly rates of pay and all fees, levies and contributions normally payable to this Council, shall come into effect immediately.