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

Notices

Bargaining Council for the Metal and Engineering Industries

Extension of the Consolidated Main Collective Agreement to Non-parties (for the period 1 July 2021 to 30 June 2024)

Part 2

5. Annexures

Annexure K - National Exemptions Policy

Criteria for Exemption

7. Labour Broker Package Rate Exemptions

 

7.1 The Council may at any time after prior notification, withdraw the exemption either wholly or in part, or amend the conditions under which the exemption was issued, or amend the conditions of employment and other matters regulated under the exemption.

 

7.2 The exemption shall apply only in respect of workers supplied to clients by the labour broker within the meaning of the provisions dealing with labour broking in the Labour Relations Act, No. 66 of 1995.

 

7.3 The exemption shall apply only in respect of a worker with whom the labour broker has entered into a written site contract of employment in the same form as the contract incorporated herein (Refer Annexure 2) and only for the duration of the mentioned site contract.

 

7.4 Any matter not dealt with in the mentioned contract, whether through mere omission by one or both the parties to the contract or for whatever other reason, shall not be regulated by the exemption but shall be regulated in terms of the relevant provision dealing with the matter in the industrial agreements.

 

7.5 The exemption shall only apply if the labour broker has complied and continues to comply with the registration requirements prescribed in Clause 20(3) – “Outwork, Temporary Employment Services and Limited Duration Contracts” - of the Main Agreement applicable in the Industry.

 

7.6 A signed copy of the prescribed contract entered into shall be made available to the worker concerned, on the worker's request, or his representative's request and a copy thereof shall be retained in the employer's filing system.

 

7.7 The worker shall be paid a minimum package rate per hour consisting of:
(i) An amount of not less than the prescribed minimum hourly rate in the Main Agreement for his class of work to which shall be added an amount in respect of each of the following items. The amount shall be calculated using the percentages of the actual basic wage rate as given below.
(ii) Overtime (based on the table annexed hereto as Annexure 1 and to be determined in terms of the overtime requirements of each separate site/project).
(iii) Leave pay                        : 6.4% of the actual basic wage rate
(iv) Leave enhancement pay        : 8.33% of the actual basic wage rate
(v) Public holiday                        : 5.13% of the actual basic wage rate
(vi) Sick leave                        : 4.27% of the actual basic wage rate
(vii) Family responsibility leave        : 1.28% of the actual basic wage rate.

 

7.8 The labour broker shall be liable for and pay over to the Council in respect of each worker an amount per hour (which is limited to the maximum working hours per week as per the Main Agreement) consisting of:—
(i) A contribution to the Industry Retirement Funds of 13.2 per cent of the employee's pensionable remuneration. (See note below).
(ii) A Council administration contribution of R/c* per week or part thereof per employee, subject to the condition that if the total amount payable in respect of the Council administration contributions is less than the minimum monthly payment required from each employer in terms of the Council’s Registration and Administration Expenses Agreement, the labour broker shall make up the difference and forward the total amount to the Council.

 

* R/c of the applicable or prevailing administration levy contribution

 

NOTE: For the purpose of this exemption pensionable remuneration is defined as being the employees actual total remuneration excluding only overtime pay, leave enhancement pay and allowances.

 

Pensionable remuneration therefore includes, in addition to the actual basic rate of pay, payment for sick leave, family responsibility leave, annual leave, public holidays and all bonuses other than the leave enhancement pay. This definition is consistent with the definition in the Industry Fund Agreements.

 

7.9 The provisions of the respective industrial agreements regulating payment and application of contributions in respect of Provident Fund, and the administration expenses of the Council shall, in so far as they are not inconsistent with the provisions of this Agreement, apply in respect of the contributions payable in terms of subclause 6.8 of this exemption and shall prescribe the times of payment, the addresses at which payment must be made, and the payment of interest on late payments.

 

7.10 Provident fund contributions shall be accompanied by a form prescribed from time to time by the Council wherein shall be specified the full amount payable and in respect of each worker:
(i) His/her full name;
(ii) His/her identity number;
(iii) the period in respect of which the contributions are being made;
(iv) the amount of contributions;
(v) the classification of the workers work.

 

7.11 Council administration contributions shall be accompanied by a form prescribed from time to time by the Council wherein shall be specified:
(i) the period in respect of which contributions are being made;
(ii) the number of employees in respect of whom contributions are being made;
(iii) the full amount payable.

 

7.12 The exemption shall be granted for the period of the limited duration contract entered into with the employee or for a period determined by the Council whichever is the earlier.