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

Notices

Bargaining Council for the Metal and Engineering Industries

Consolidated 2021/2025 Plastic Industry Main Collective Agreement

Chapter 3

14. Leave Enhancement Pay

 

For the purposes of this section—

 

‘Leave Qualification’

shall be the qualification for the paid leave prescribed in section 12 of this Agreement, and the expression—

 

‘leave cycles’

shall have a similar meaning. Staggered Leave means at Company level no annual shut down is observed and arrangement in terms of which leave qualification is determined by either date of employment of every individual employee or by agreement on the leave period;

 

‘L.E.P.’

means Leave Enhancement Pay;

 

(1) Every employee shall, subject to sub-clause 4(b), and an employee whose conditions of employment ceases to be regulated by this Agreement due to promotion or change in occupation, be entitled under this Agreement to L.E.P. calculated at 8.4% of annual ordinary earnings applicable on the date on which the employee proceeds on leave. Provided that in the case of an employee who terminates his services or whose employment is terminated by the employer, the leave enhancement pay shall be calculated at 8.4% of the accumulated ordinary earnings for that year applicable on the date of such termination of employment.

 

(2) Whenever an employee to whom this Clause applies qualifies for and takes his paid leave after the date of coming into operation of this Agreement, he shall at the same time be paid pro rata leave enhancement pay from the date of engagement in the case of an employee qualifying for his first period of paid leave in the service of an employer.

 

(3) Whenever the employment of an employee terminates before he becomes entitled to paid leave, the employee shall be paid leave enhancement pay, calculated at 8.4% of accumulate earnings for that year applicable on the date of termination.

 

(4) Exclusions:
(a) No leave enhancement pay shall be credited for periods of employment which in terms of clause 12(2)(a) of this Part of the Agreement do not count towards the paid leave;
(b) This provision will not apply in cases where the employer have negotiated and introduced a performance measurement system;
(c) Shifts or periods of absence which do not count or leave purposes in terms of sub-clause 12(2)(a)(ii) of this Agreement shall be excluded in the calculation of the bonus due; and
(d) Additional leave pay as per Clause 13 shall not be included in the calculation of the bonus due.