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

Notices

Motor Industry Bargaining Council  (MIBCO)

Main Collective Agreement

Division A : Provisions Applicable to all Establishments in the Industry

Clause 6 : Additional Holiday Pay & Holiday Bonus

6.1 Holiday Bonus

 

 

(1)        Rates

(a) Employees excluding motor vehicles salesperson and supply salespersons for whom additional holiday pay is not prescribed in terms of this Agreement who qualifies for paid annual leave shall be paid a holiday bonus by their employers.
(b) The amount of the holiday bonus referred in paragraph (a) of this subclause shall be two weeks’ wages, with a maximum payment of—
(i) from 7 February 2011 to 31 August 2011: R3 304,80 per annum
(ii) For the period 1 September 2011 to 31 August 2012: R3 569,40 per annum.
(iii) For the period 1 September 2012 to 31 August 2013: R3 819,60 per annum.

provided that in the case of establishments registered under Chapter III of Division C of this Agreement, the leave bonus will be three weeks calculated on actual wages (no capping) with effect from 25 September 2007.

(c) Payment of the bonus shall be made as follows by mutual Agreement between employer and employee:
(i) on completion of 12 month's service; or
(ii) at commencement of the employee's annual leave; or
(iii) not later than the 20th day of December each year:
(iv) The holiday bonus shall become due and payable at the same date as the annual leave falls due.

Provided that in the event of Agreement not having been reached between the employer and the employee, the bonus shall be payable to the employee on completion of his leave cycle.

(d) The amount of the holiday bonus referred to in paragraph (b) of this subclause shall be reduced by one fifty-second for each week during which the employee does not work a full five shifts, a "shift" for this purpose having the meaning given to this term in clause 5.1(1)(ii) of this Division.

 

(2)        Pro-rata payment of holiday bonus

(a) Where an employee leaves the service of his employer before qualifying for a leave bonus or additional holiday pay, such employee shall be paid a pro rata portion of his leave bonus or additional holiday pay, as the case may be, on termination of service; Provided that
(i) in the case of an employee whose services are terminated as a result of dismissal for misconduct, incapacity relating to poor performance or desertion; and such dismissal for reasons other than desertion is preceded by a formal hearing and the employee concerned is found guilty as charged, this subclause shall not apply;
(ii) where the employee concerned is found guilty and such finding is overturned during the Dispute Resolution process to the status of “unfair dismissal”, such employee shall be granted the pro rata holiday bonus as prescribed in this clause;