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Labour Relations Act, 1995 (Act No. 66 of 1995)

Notices

Bargaining Council for the Meat Trade, Gauteng

Main Collective Agreement to Non-Parties

4A. Calculation of Annual Leave Pay, Payment instead of Notice and Severance Pay

 

(1) The following payments are included in an employee's remuneration for the purposes of calculating pay for annual leave in terms of clause 11 of the Former Agreement, payment instead of notice in terms of clause 15 of the Former Agreement and severance pay in terms of clause 16 of the Former Agreement—
(a) Housing or accommodation allowance or subsidy or housing or accommodation received as a benefit in kind;
(b) Car allowance of provision of a car, except to the extent that the car is provided to enable the employee to work;
(c) Any cash payments made to an employee, except those listed as exclusions in terms of this clause;
(d) Any other payment in kind received by an employee, except those listed as exclusions in terms of this clause;
(e) Employer's contributions to medical aid, pension, provident fund or similar schemes;
(f) Employer's contributions to funeral or death benefit schemes.

 

(2) The following items do not form part of remuneration for the purpose of these calculations:
(a) Any cash payment or payment in kind provided to enable the employee to work (for example, an equipment, tool or similar allowance or the provision of transport or the payment of a transport allowance to enable the employee to travel to and from work);
(b) A relocation allowance;
(c) Gratuities (for example, tips received from customers) and gifts from the employer;
(d) Share incentive schemes;
(e) Discretionary payments not related to an employee's hours of work or performance (for example, a discretionary profit-sharing scheme);
(f) An entertainment allowance;
(g) An education or schooling allowance.

 

(3) The value of payments in kind must be determined as follows:
(a) a value agreed to in either a contract of employment or collective agreement, provided that the agreed value may not be less than the cost to the employer of providing the payment in kind; or
(b) the cost to the employer of providing the payment in kind.

 

(4) An employee is not entitled to a payment or the cash value of a payment in kind as part of remuneration if:
(a) the employee received the payment or enjoyed, or was entitled to enjoy, the payment in kind during the relevant period; or
(c) in the case of a contribution to a fund or scheme that forms part of remuneration, the employer paid the contribution in respect of the relevant period.

 

(5) This clause only applies to pay for annual leave accrued from the 1st July 2003.

 

(6) If a payment fluctuates, it must be calculated over a period of 13 weeks or, if the employee has been in employment for a shorter period, that period.

 

(7) A payment received in a particular period in respect of a longer period (e.g. a thirteenth cheque) must be pro-rated.

 

(8) This calculation only applies to the minimum payments that an employer is required to make in terms of the Council's Collective Agreement.