High-income Earners Excluded From Labour Protection Laws

Employees who earn above a certain amount annually will no longer be covered by South Africa's labour legislation, effective from Tuesday.

According to a notice published in the Government Gazette, the new earnings threshold is set at R261 748.45 per year or R21 812.37 per month. This represents an increase of R7 376.78, or a 2.9 rise from last years threshold.

The earnings threshold impacts the application of provisions of the Basic Conditions of Employment Act, the Labour Relations Act and the Employment Equity Act. In terms of the new regulations, employees earning more than the earnings threshold are excluded from the provisions which regulate ordinary hours of work, overtime, Sunday pay, pay for night work and pay for work on public holidays among others.

Labour expert Malesela Letwaba from Cliffe Dekker Hofmeyr says, "If we look at the purpose of the Basic Conditions of Employment Act, its there to protect the most vulnerable employees, who are not the higher-end or higher-earning employees in the South African workforce. By entitling them to these protections afforded in Chapter 2, they can approach forums such as the CCMA and various bargaining councils to enforce their Chapter 2 rights.

He adds: In contrast, employees earning above the threshold are deemed well-remunerated and can enforce those rights either before the CCMA or, where applicable, the Labour Court of South Africa."