From 1 July 2011, employees earning more than the new threshold
of R172 000,00 per year will not automatically benefit from certain
sections of the Basic Conditions of Employment Act, 1998. The
previous threshold was R149 736,00 per year. Employees earning more
than the monetary threshold cannot insist on only working a minimum
of 45 hours in any week without receiving overtime pay (sections 9
and 10) and are also excluded from sections 11 and 12 which
regulate compressed working weeks and the averaging of work hours.
They cannot insist on a one hour meal interval (section 14), daily
and weekly rest periods between ending and recommencing work
(section 15) and to be paid for work done on Sundays (section 16).
They also do not qualify for the protection afforded by the BCEA in
relation to night work (section 17(2)) and are not automatically
entitled to additional pay for working on public holidays (section
The potential pool of employees who are automatically entitled
to overtime pay and for additional remuneration for work performed
on weekends and public holidays will therefore increase from 1 July
Employers need to be aware of this change to ensure that their
employees are paid what they are entitled to and to ensure that all
the collective agreements, letters of appointment and policies
which may be in place are updated to reflect the increase in the
In calculating an employee's annual earnings for purposes of
the monetary threshold, "earnings" means the regular
annual remuneration before any deductions such as income tax and
pension and medical payments. Earnings exclude contributions which
the employer makes in respect of the employee (for instance
contributions towards medical aid and pension funds). In
particular, subsistence and transport allowances, achievement
awards and payments for overtime worked are not regarded as
remuneration for the purpose of calculating an employee's
The content of this article is intended to provide a general
guide to the subject matter. Specialist advice should be sought
about your specific circumstances.
To print this article, all you need is to be registered on Mondaq.com.
Click to Login as an existing user or Register so you can print this article.
Employees must understand the notice periods stipulated by law. When an employee gives notice of their resignation to an employer, they is advising the employer that they will cease to work for the employer from a certain date.
Nigeria is a federal constitutional republic located on the west coast of Africa. Modern Nigeria has its origins as a British colony through the 19th and 20th century until it achieved independence in 1960.
The jurisprudential basis is pithily expressed as staying in sync with the global position on employment relationship, easily summed up as "International Labour Standard" and "International Best Practice".
Some comments from our readers… “The articles are extremely timely and highly applicable” “I often find critical information not available elsewhere” “As in-house counsel, Mondaq’s service is of great value”
Register for Access and our Free Biweekly Alert for
This service is completely free. Access 250,000 archived articles from 100+ countries and get a personalised email twice a week covering developments (and yes, our lawyers like to think you’ve read our Disclaimer).