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


Motor Industry Bargaining Council  (MIBCO)

Main Collective Agreement

Division A : Provisions Applicable to all Establishments in the Industry

Clause 5 : Leave

5.1 Annual Leave and Accrued Leave Pay

(7) Deductions from leave pay



Except as provided elsewhere in this Agreement, no deductions from leave pay shall be made as a set-off against any moneys that may be owing to the employer: Provided that the following conditions shall apply to staff loans:


(a) Staff loans shall be limited to mutually agreed upon amounts advanced as a bona fide loan;


(b) The employee shall consent to the staff loan in writing (acknowledgement of the loan stipulating the amount of the loan, interest if any, instalments and the terms of the loan);


(c) A copy of the acknowledgement of the loan shall be kept for purposes of MIBCO inspections and the employee concerned shall be handed a copy thereof;


(d) The maximum amount deducted each month shall be in accordance with the limitations set out in clause 5 of the Administrative Agreement;


(e) The aforementioned limitations may be exceeded in the event of termination of employment of whatever reasons with the written approval from the Regional Council concerned.