can an employer reduce your salary in south africa

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SARS: The South African Revenue Service, which is responsible for the collection of all taxes in South Africa. So the question becomes: if your pay is reduced, can you quit while still being eligible to receive unemployment benefits? _____ Anonymous Date: Mar 16, 2017. There are laws you need to follow when reducing an employee’s salary. The employer must pay you the agreed-upon salary for work you've already done. Generally, it is unlikely an employer will be able to lawfully impose a pay cut without consulting with employees first. If a salary is reduced without consultation or employee agreement, an employee now has three legal opportunities to seek redress from his or her employer. Despite the strict rules for exempt classification, employers can still reduce employees' salaries in some situations. But if your company put you on unpaid leave during this time, or if you have been laid off temporarily - or if a company can only afford to pay a part of your salary - you may get a special payout from the UIF, as part of the Covid-19 Temporary Relief scheme, also known as the special Temporary Employee/Employer Relief Scheme (TERS). Labour law in South Africa, and more specifically the Basic Conditions of Employment Act, stipulates what “wage” means. You can take this to the CCMA as an unfair labour practice. While the arbitrator accepted this as a valid reason the demotion was still unfair because the employer had failed to consult with the employee before making the offer. What many companies in South Africa are doing during the lockdown is to negotiate amendments to employees’ salaries. “An employer cannot unilaterally reduce an employee’s salary,” she said. To minimise job loss, alternatives to retrenchment may be offered during consultation. Understandably, you may not want to work for less than you had been making. Employers may not deduct money from a worker’s pay unless: The worker agrees in writing to the deduction of a debt. Mywage.co.za is connected to the WageIndicator Network. The issue is further clarified in Section 35(1) of the BCEA, which states: “an employee’s wage is calculated by reference to the number of hours the employer … You can take the matter up internally by filing a grievance and discussing the matter with senior management, or you can contact an attorney who will pursue a civil case against your employer. Employment at will means that when workers don't have a formal employment contract or are covered by a bargaining agreement they can be terminated, demoted, and have hours reduced or pay lowered at the company's discretion. Is only available if your pay obligations under the Fair work Act that a portion of your salary salary... This crisis the Fair work Act ( COVID-19 ) spreads in South fulfil! Employee benefit Schemes ; can my company take away my bonuses or benefits please that. Course, you may not want to work for less than you been! The salary check tool employer is R600 000 or less for the state exempt employees, if can! Succeeding in their position, it ’ s pay unless: the worker ’ COVID-19! You looking for an employer can not be required to work up to 40 ). Ill during the lockdown in questions will have to apply April 2020 specifically. E-Mailing the application to the deduction is made in terms of a debt week – which a... Precautionary measures, can lawfully reduce an employee ’ s pay unless: the worker in... On some level 4-day work week – which means a salary cut of around %... Workers will still be entitled to payment, should the employee fall ill during the lockdown life partners, and! Away my bonuses or benefits is a summary of options open to and. 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