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


National Bargaining Council for the Clothing Manufacturing Industry

Main Collective Agreement

Part C : Provisions for the KwaZulu-Natal Region

15. Holiday Leave Benefit (Annual Bonus) Fund Account



(1) The Fund known as the Holiday Leave Benefit Fund Account for the Clothing Industry (Natal), originally established on 13 November 1992 in terms of Government Notice No. R. 310 is hereby continued, the purpose of which is to provide for an annual bonus to employees. The Fund Account is administered by the Council.


(2) The Fund Account shall maintain individual employer accounts which shall consist of—
(a) contributions paid into the Fund Account in accordance with the provisions of this part of the Agreement;
(b) interest derived from the investment of any moneys of the Fund Account.
(c) any other moneys to which the Fund Account may become entitled.



(a) For the purposes of the Fund every employer shall contribute 3,47% of an employee's weekly wage, which shall be forwarded monthly, no later than the 10th day of each month, to the Secretary of the Council.
(b) Such total sum must be accompanied by a list showing the Council registration numbers of the employees and the amounts contributed.



(a) An employee is entitled to a benefit of 3,47% of the actual annual basic wages earned with the employer by whom he is employed on the day of factory closure: Provided that he is still in that employer's service. This benefit is payable to him in December of each year on the day of factory closure.
(b) A pro rata share of the bonus set out in paragraph (a) above shall be paid to an employee who leaves employment before the day of factory closure.
(c) This benefit is inclusive of and not additional to any annual bonus paid by an employer.


(5) Notwithstanding the provisions of subclause (4), an employee shall not suffer a reduction in the amount of the annual holiday leave benefit as a result of periods of authorised absence from work.