2020 has been a year of firsts, lasts, retrospect, disruptions and extensions. Extensions to Covid-19 regulations. Extensions to bargaining council agreements.
The Minister of Employment and Labour, Minister Nxesi held meetings throughout 2020 with regard to the different industries in South Africa and the impact the Covid-19 global pandemic has had on these industries.
On the 18th of December 2020 the Minister extended the Collective Agreement of the Bargaining Council for Fast Food, Restaurant, Catering and Allied Trades to all non-parties in terms of section 32(2) of the Labour Relations Act.
This means that all Employers and Employees within the industry are bound by the provisions of the Collective Agreement with the exception of such Employers who are based in the Brits (NW), Rustenburg (NW), Witbank (MP), Warmbaths (LP), Nigel (GP), Vereeniging (GP), Vanderbijlpark (GP), Oberholzer (GP), Meyerton (GP) and Carletonville (GP) Magisterial Districts.
For Employers within this Industry who were not previously bound by the Collective Agreement this means that they have had thirty days to register with the Council after the extension to non-parties had been published.
There are several key differences in terms of conditions of employment as well as other factors which will se an increase in the cost of doing business for such employers:
- The Minimum Wage of the industry will be regulated by the Council for the industry and current salaries must be adapted thereto.
- Annual bonuses are compulsory and are payable as follow:
- After twelve months of service – one weeks’ worth of wages during the month of December.
- After twenty-four months of service – two weeks’ worth wages during the month of December.
- Uniform Cleaning Allowances become payable to workers in the event that employees clean their own work uniforms / apparel to the amount of R17.50 per week.
- Two new Employee benefits have been established.
- Funeral Insurance Scheme:
- Every Employer shall, in respect of each month, deduct R12.50 from each employee’s wages payable and contribute an equal amount.
- Provident Fund:
- To provide employees with Provident Fund Benefits, Employers shall in respect of each month, deduct 5% from each employee’s wages payable and contribute an equal amount.
- Funeral Insurance Scheme:
- Council fees become payable:
- To meet the expenses of the Council and its dispute resolution function, R5 and R3 respectively is to be deducted from employees’ wages payable every month.
- Employers are to contribute an equal amount to the aforementioned, in addition to R25 from each Employer.
- The number of working days may not exceed six days per week for each employee.
- The Employer must display a copy of the Collective Agreement in a prominent place within the workplace and make it available to any employee on demand.
For the complete agreement, you can download it, along with the extension notice as per Government Gazette by clicking here.
If you require assistance in the implementation of these regulations, please contact HR City.