Every employer has an obligation when it comes to the remuneration of employees. These obligations are outlined in the Basic Conditions of Employment Act (BCEA). In this article we will be delving into those obligations. It is important for every person who has people or a person in their employ to know and understand these obligations as stated in the BCEA.
In this article we will be covering the 4 things that employers need to comply with when it comes to remunerating their employees.
The form of payment
An employer must pay an employee any remuneration that is paid in money in South African currency on either a daily, weekly, fortnightly or monthly basis. The payment must be made in cash, by cheque or direct deposit into an account designated by the employee.
Cash or Cheque Payments
Any remuneration paid in cash or by cheque must be given to each employee at the workplace or at a place agreed to by the employee. This payment must be given during the employee’s working hours or within 15 minutes of the commencement or conclusion of those hours. The payment must be handed over to the employee in a sealed envelope which becomes the property of the employee.
The employer has an obligation to pay the remuneration by no later than seven days after the completion of the period for which the remuneration is payable. The employer must pay any monies due to the employee upon termination of the contract of employment.
An employer must give an employee the following information in writing on each day the employee is paid:
- The employer’s name and address;
- The employee’s name and occupation;
- The period for which the payment is made;
- The employee’s remuneration in money;
- The amount and purpose of any deductions made from the remuneration;
- The actual amount paid to the employee;
- The employee’s rate of remuneration and overtime rate;
- The number of ordinary and overtime hours worked by the employee during the period for which the payment is made;
- The number of hours worked by the employee on a Sunday or public holiday during that period;
All these requirements as set out in the BCEA can be met through an efficient and reliable payroll system which includes payslips that contain all the information that is prescribed in the BCEA.
Our Payroll solution is a feature-rich, tried and tested module that fully integrates with our Human Resources Information System (HRIS). Our payroll solution offers payroll technology either for in-house payroll administration or, alternatively, as an outsourced payroll solution.
For a free demo of our payroll solution please visit our website to register on www.nxusahr.co.za.
For more information on this topic, please do not hesitate to contact us.