demotion and salary reduction south africa

Employers must always obtain the employee’s consent to a demotion, in writing, as it entails the changing of an employee’s terms and conditions of employment. Despite trying circumstances, employers are advised to take all labour law considerations into account before imposing demotion on an employee. Meet some of our people who are benefiting from flexible working across RELX. South Africa's auto industry highlights the social and employment cost of innovation Women equal men in computing skill, but are less confident More neurotic, less agreeable, less conscientious: how job insecurity shapes your personality ... with a reduction of salary … In … Should such refusal of demotion, as opposed to retrenchment be unreasonable, the employee will not be entitled to severance pay in terms of Sub-Sections 41(2) and 41(4) of the Basic Conditions of Employment Act 75 of 1997. Pay Deductions and work agreement, Payroll Deductions and contract, pay deductions and wages. In Plaatjies vs RK Agencies (2005, 1 BALR 77) the employer offered the employee an alternative position at a lower salary due to the fact that the employer had lost a major contract. Hoffmann v South African Airways [2000] 12 BLLR 1365 (CC): “…An order of instatement, which requires an employer to employ an employee, is a basic element of the appropriate relief in the case of a prospective employee who is denied employment for reasons declared impermissible by the Constitution. *The employee is now required to report to someone who used to report to him/her. [33] It should be noted that this case is different to those cases where an employee in anticipation of the outcome of a disciplinary hearing resigns. Cookies help us to understand you better. The employees must, in principle, agree to the salary changes. A number of international and local companies have requested that their employees work from home due to the dire consequences of the COVID-19 coronavirus pandemic. This, in turn, led to even senior management having to agree to a salary reduction of 10%. The Demotion of Workers must be Procedural - South Africa The Labour Relations Act makes provision for the demotion of an employee in the right circumstances. Lavery Modise and Sicelo Mngomezulu The Labour Relations Act makes provision for the demotion of an employee in the right circumstances. Improving the knowledge and skills of South Africa’s teachers is an important part of strengthening our education system. … Since a demotion without consent is a repudiation of the employment contract, it, therefore, entitles the employee to sue for breach of contract. Demoting an employee can only be done under certain conditions. If an employee is not sick and still willing to attend work, but it is a direct instruction from their employer to remain at home, such employees will still be entitled to earn and receive their normal salary and benefits. Your employer can offer a demotion with reduction in pay as alternative to dismissal. Get your South African law questions answered by Experts. The demotion and reduction in salary is a drastic step in particular when done without the consent of the employee. South African workers will still be entitled to payment, should their employer ask them to remain at home during this crisis. In Plaatjies vs RK Agencies (2005, 1 BALR 77) the employer offered the employee an alternative position at a lower salary due to the fact that the employer had lost a major contract. The procedure to be followed in implementing a fair demotion. If an employee refuses to attend work because of concerns of contracting the virus (given the declaration of a disaster by President Cyril Ramaphosa), each case should be dealt with based on its own merits. South African workers will still be entitled to payment, should their employer ask them to remain at home during this crisis. Section 186(2)(a) of the Labour Relations Act 66 of 1995 provides that any act or omission involving the unfair conduct of the employer in relation to demotion constitutes an unfair labour practice. where it is found that false information has been circulating), employees who fail to obey a reasonable instruction to attend work can be disciplined. Remember, consultation aimed at seeking alternatives to retrenchment is imperative! Boundaries HR should establish for employee wellbeing in a POST-COVID-19 world, Africa is greatly challenged by COVID-19 pandemic, Statutory Bodies / Regulatory / Ombudsman, [a] Eliminate non-advice sales / telesales, [b] Implement industry standards for non-advice information, [c] Introduce an insurer-funded pro-bono advice network to low income earners, [d] Reinforce the Policyholder Protection Rules. With some employees also opting to self-quarantine, there are a number of labour law considerations that South African businesses will have to consider. Be the first to know when we update the LexisNexis COVID-19 Resource Centre. This may assist with small, medium and large businesses having to accommodate the financial distress that the COVID-19 has and will still bring to the economy of South Africa. She advises clients and appears at the Labour Court, CCMA and Bargaining Council, and disciplinary hearings and settlement negotiations where necessary.Kayla has completed a Labour Law Practice Course accredited by Wits University, attaining the top mark in the country. ... "My boss says he is going to take R50 off my salary each month for expenses in the workplace, such as coffee, tea etc. He then referred a dispute to the third respondent as a demotion within the contemplation of Section 186(2) of the ... dispute was the demotion and transfer was the issue in … Should an employer demote an employee without affording the employee the right to be heard, it could amount to an unfair labour practice with the employer being liable to the employee for either reinstatement or compensation. I am also aware that my request will require a six-month waiting period before consideration for a salary adjustment or rate increase. Whether the demotion is merited (in COVID-19’s case it would be, as the employer will no longer be able to afford salaries). ... with a reduction of salary as an alternative to retrenchment. Inform employees of any salary reductions before changing their pay rate. It can arise through the reduction of salary, change in terms and conditions of employment and indeed transfer. The employee must have agreed to the deduction. If an employer cuts pay without notifying an employee, it can be considered a breach of contract, depending on … Demotion may be one of the ways to assist employers with financial issues due to COVID-19: Demotion can occur in the following ways: The employer gives the employee a letter stating that he/she has been demoted due to: • The employee’s pay and/or responsibilities are reduced. This, in turn, led to even senior management having to agree to a salary reduction of 10%. It is common cause that the employee’s salariy was reduced by two thirds as a result of her redeployment. Many large South African employers, … [30] The Applicant's view is illogical and misdirected if not opportunistic. This may assist with small, medium and large businesses having to accommodate the financial distress that the COVID-19 has and will still bring to the economy of South Africa. This means a demotion cannot be imposed unilaterally by an employer without consulting with the employee. Summary: Review – ULP – demotion – LRA s 186(2)(a). As the employee moves into their lower ranking position, their pay decreases as well. It must be noted that there is no clear provision on “a reasonable range”. A salary reduction can’t occur unless you notify the employee of the pay cut first. However, many employers unjustly demote their employees based on discrimination. The main reason for this is that a person would rather have a job with less money than no job at all. KEEP UP TO DATE WITH ALL THE IMPORTANT COVID-19 INFORMATION, Customer experience in the ‘now’ generation, How to keep brokers out of the firing line, Getting to grips with contractual versus delictual liability, International trusts and tax consequences, The COVID-19 pandemic and medical schemes, Affinity Health Talks About Long Covid And How To Manage The Effects. [34] In my view, the arbitrator misconstrued the juridical concept of demotion. If an employee refuses to attend work because of concerns of contracting the virus (given the declaration of a disaster by President Cyril Ramaphosa), each case should be dealt with based on its own merits. Pay cuts are often made to reduce layoffs while saving the company money during a difficult economic period. Her salary was reduced to R4227.76 with effect from 1 September 2017. Can an employer drop the current salary of an employee for the following reasons demotion, succession planning, poor - Answered by a verified Lawyer ... where the husbond is General Manager in a Private Game Reserve in South Africa with app. The change made may be in the form of a sudden reduction in salary for some or other reason, changes to commission structure or a reduction in the amount of commission paid, the removal of or reduction in some other benefits such as a bonus, or something of that nature. Should an employee refuse the demotion, the employee will be entitled to severance pay, as long as the reason for refusal is justifiable. One wrong move could result in lawful demotions provision on “ a range! That a demotion with reduction in salary some of our people who are benefiting from working. Refusing to take all labour law considerations that South African workers will still be to! Followed in implementing a fair demotion an alternative to retrenchment disease, must! 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