In the past several weeks was it necessary for me to consult with employees of my client, to explain the law on working hours and how overtime and other additional payments are calculated in accordance with the law.
Although this seemed like very basic knowledge to me, the more people I spoke with, the more I came to realise that there are misinterpretations, misconceptions and just incorrect practices happening at (I dare say) 95% of businesses out there. I was a bit alarmed at this, since it must have been incorrectly implemented or applied by somebody like a previous labour consulting firm or the in-house HR & Payroll person, based on limited knowledge of the law, or worse, a want to gain favour with the employees – and this sadly came at the expense of the company.
And so, I have decided to do a short series over the next few weeks to cover the more commonly used sections of the Basic Conditions of Employment Act (BCEA) and indicate what the law says exactly and what I deem to be the correct interpretation and use of these sections. It is to be noted that there are several other industries and sectors who all have their own set of rules regarding these, however, the basic principles remain the same and accordingly do I address the general company and not those industries who are regulated by Bargaining Councils and/or a Main – or Collective Agreement, for example Construction; Mining; Private Security; Motor, Metal and Engineering; Private Cleaning; Retail and Wholesale etc.
To start off, I should mention that the BCEA is divided into 11 Chapters with following Schedules.
My intention is not to cover all of these as some of it is not of much interest to most business owners, like where it speaks to things like “Minister’s power to add and change footnotes”, “Jurisdiction of Labour Court” and “Establishment and functions of Employment Conditions Commission” etc, which I personally have never needed to advise on.
For today’s article do I focus on certain sections contained within Chapter 1 and 2 only.
Chapter 1 includes:
1. Definitions
2. Purpose of this Act
3. Application of this Act
4. Inclusion of provisions in contracts of employment
5. This Act not affected by agreements
There is nothing I would specifically like to mention or point out on Chapter 1 out as any comments on these sections would be pointing out the obvious, or alternatively the exceptions, which is not the purpose of this article as I am going to deal more with the general application of the BCEA rather than the exceptions.
Chapter 2 includes:
6. Application of this Chapter
7. Regulation of working time
8. Interpretation of day
9. Ordinary hours of work
10. Overtime
11. Compressed working week
12. Averaging of hours of work
13. Determination of hours of work by Minister
14. Meal intervals
15. Daily and weekly rest period
16. Pay for work on Sundays
17. Night work
18. Public holidays
This is the part where things become a bit more interesting and you will see from the flow of the sections (above) that 1 discussion point will be followed by the next i.e., ordinary working hours and how much you are allowed to work, followed by overtime which is when you are required to work more than the prescribed ordinary working hours, how much overtime you can be allowed to work and how those hours worked should be remunerated by the employer etc.
First thing would be to establish whom these sections apply to or not.
Section 6 of the BCEA says that.
(1) This Chapter, except section 7 (Regulation of working time), does not apply to–
(a) senior managerial employees (those who can hire, discipline and dismiss workers)
(b) employees engaged as sales staff who travel to the premises of customers and who regulate their own hours of work.
(c) employees who work less than 24 hours a month for an employer.
(2) Sections 9 (Ordinary hours of work), 10.1, (Overtime) 14( I) (Meal intervals), 15(1) (Daily and weekly rest periods), 17(2) (Night work) and 18(1) (Public Holidays) do not apply to work which is required to be done without delay owing to circumstances for which the employer could not reasonably have been expected to make provision and which cannot be performed by employees during their ordinary hours of work.
(3) The Minister must on the advice of the Commission make a determination that excludes the application of this (whole) Chapter or any provision of it to any category of employees earning in excess of an amount stated in that determination.
Section 7 – REGULATION OF WORKING TIME
This section in short just says that every employer must regulate the working time of each employee in accordance with the provisions of any Act governing occupational health and safety, with due regard to the health and safety of employees, with due regard to the Code of Good Practice on the Regulation of Working Times issued under section 87(1 )(a) and (d) with due regard to the family responsibilities of employees.
Section 8 – INTERPRETATION OF DAY
This section indicates that for the purposes of sections 9. 10 and 11. “day’” means a period of 24 hours measured from the time when the employee normally commences work. i.e., should the employee start work at 8h00, this would mean that a “day” would be from 8h00 to 8h00 the following day. Nothing too complicated with this.
Section 9 – ORDINARY HOURS OF WORK (This is where things get a little less boring)
(1) Subject to this Chapter, an employer may not require or permit an employee to work more than
(a) 45 hours in any week: and
(b) nine hours in any day if the employee works for five days or fewer in a week:
(c) eight hours in any day if the employee works on more than five days in a week.
(2) and (3) – not relevant for the purpose of this article
Certain industries work less than this, however it is based on their own agreements and rules. Some of these industries include but are not limited to:
Section 10 – OVERTIME
Subject to this Chapter an employer may not require or permit an employee:
(a) to work overtime, except in accordance with an agreement;
(b) to work more than
(i) three hours’ overtime a day; or
(ii) ten hours’ overtime a week.
(2) An employer must pay an employee at least one and one-half times (x1.5) the employee’s wage for overtime worked.
(3) Despite subsection (2) an agreement may provide for an employer to:
(a) pay an employee not less than the employee’s ordinary wage for overtime worked and grant the employee at least 30 minutes’ time off on full pay for every hour of overtime worked; or
(b) grant an employee at least 90 minutes’ paid time off for each hour of overtime worked.
(4) (a) An employer must grant paid time off in terms of subsection (3) within one month of the employee becoming entitled to it. (b) An agreement in writing may increase the period contemplated by paragraph (a) to 12 months.
(5) An agreement concluded in terms of subsection (1) with an employee when the employee commences
Section 11 – COMPRESSED WORKING WEEK
I am not going to quote the law but what it says is that by agreement may the employer require the employee to work up to twelve hours in a day, inclusive of the meal intervals without receiving overtime pay. This still does not mean the employee will not be remunerated for overtime worked in accordance with the above section.
This predominately works in the Motor and Private Security industries as they work either a 4 days on, 3 (or 4) days off schedule which means the employees will work 12 hour shifts for 4 days and then be off for 3 or 4 days, which means they work the hours in the week, but just in a more compressed manner than others, however they get more days off than others due to this.
Section 12 – AVERAGING OF HOURS OF WORK
This section says that an employer may not require or permit an employee who is bound by a collective agreement to work more than an average of 45 ordinary hours of work in a week over the agreed period. This is usually just applicable during very busy or seasonal work where there is a big (temporary) increase of work where the employees work long hours and then there is an immediate decrease of work which means the employees work significantly less hours, but this is then averaged out over a period of time. Best example of this would be builders finishing up a build, or apple pickers on an apple farm being needed for 2 months but the hours are paid over 4 months.
Section 13 – DETERMINATION OF HOURS OF WORK BY MINISTER
This section just says that the Minister may determine the maximum prescribed working hours. He/she has the legal right and appointment to do so, should he/she so determine. Employers do not have much say in this.
Section 14 – MEAL INTERVALS (or more commonly known as Lunch Breaks)
(1) An employer must give an employee who works continuously for more than five hours a meal interval of at least one continuous hour.
(2) During a meal interval the employee may be required or permitted to perform only duties that cannot be left unattended and cannot be performed by another employee.
(3) An employee must be remunerated for a meal interval in which the employee is required to work or is required to be available for work
(4) For the purposes of subsection (1), work is continuous unless it is interrupted by an interval of at least 60 minutes.
(5) An agreement, in writing, may— (a) reduce the meal interval to not less than 30 minutes; (b) dispense with a meal interval for an employee who works fewer than six hours on a day.
Section 15 – DAILY AND WEEKLY REST PERIOD
Unless otherwise agreed in writing with a solid rationale, must employees be given a daily rest period of 12 consecutive hours and a weekly rest period of 36 consecutive hours. Example of this would be that the employee knocks off Saturday at 13h00 and returns Monday morning at 8h00 – this would mean the employee had 43 consecutive hours off and thus met the minimum requirement of section 15.
There are exceptions to the above, however that is very industry specific and would be specific to the employer’s contracts and agreements with clients.
Section 16 – PAY FOR WORK ON SUNDAYS
Section 17 – NIGHT WORK
Section 18 – PUBLIC HOLIDAYS
I understand that this was a long article with a lot of information, however usually BCEA training is a whole day (sometimes 2 days) training session due to the amount of information contained in same.
I do hope that this would clarify some issues regarding what is allowed and what is not, as well as how, why and for what an employee should be remunerated or not remunerated.
Please contact us if your organisation requires input or assistance on any labour-related matter.
By Gerhard Kotzé
Member
SA Labour Help