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Article 33/2025

In terms of s34(1) of the BCEA, an employer may not make deductions from an employee’s remuneration unless, subject to s34(2), the employee agrees, in writing, or the deduction is made in terms of a law, collective agreement, court order or arbitration award.

In terms of s34(2) of the BCEA, a deduction in terms of s34(1) can only be made if:

  • the loss/damage occurred in the course of employment and the employee is at fault
  • the employer followed a fair procedure – i e give the employee a reasonable opportunity to show why deductions should not be made
  • the total amount of debt does not exceed the actual amount of loss/damage
  • the total deductions do not exceed a quarter of the employee’s remuneration in
    money

How did the labour appeal court, in North West Provincial Legislature and Another v National Education, Health and Allied Workers Union obo Members (2023) 34 SALLR 351 (LAC) apply the aforesaid statutory provisions if the employer erroneously made payment to employees while they were participating in a strike?

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The labour appeal court adopted, inter alia, the following approach:

  • the principle of no work no pay, applicable during a strike, whether lawful or unlawful (ito s67(3) of the LRA) is not in conflict with the aforesaid statutory provisions of the BCEA
  • there is a difference between an employer’s entitlement not to pay during a strike ito s67(3) of the LRA and an employer’s entitlement to deduct from the remuneration of employees ito s34 of the BCEA
  • although there is compliance with a fair procedure as required by s34(2)(b) of the BCEA, in the absence of such fair procedure leading to an agreement and in the absence of the other requirements being complied with (i e a law, collective agreement, court order arbitration award), the right to make deductions is not triggered
  • the no work, no pay principle, contemplated in s67(3) of the LRA, is not a law contemplated in s34(1)(b) of the BCEA

Precautionary suspensions

In the public sector, the Senior Management Service Handbook (SMS Handbook) directly addresses precautionary suspensions and the 60-day time limit.

Clause 2.7(2)(c) of the SMS Handbook provides that ‘If a member is suspended or transferred as a precautionary measure, the employer must hold a disciplinary hearing within 60 days. The chair of the hearing must then decide on any further postponement.’

Regulation 6 of the Local Government: Disciplinary Regulations Senior Managers, 2010 (Regulations) provides for the precautionary suspension of senior municipal employees and Regulation 6(6)(a) provides: ‘If a senior is suspended, a disciplinary hearing must commence within three months after the date of suspension, failing which the suspension will automatically lapse.’

What are the principles governing a determination of the question as to whether or not a senior municipal employee’s suspension automatically lapses in terms of the aforesaid Regulation 6(6)(a)?

Obviously, the answers to the aforesaid question are very relevant in the private sector where, firstly, a collective agreement regulates a similar process or, alternatively, such contractual rights have been created between the parties, to be enforced in terms of s77(3) of the BCEA.

In the previous article, we dealt with the consequences of a plant level collective agreement with a definite beginning and end date. We indicated to you that, in line with s23(2) of the LRA, and an analysis of the relevant case law, that, once such a collective agreement reaches its expiry date, it expires and is no longer of any force or effect. In this article, we deal with the scenario where a plant level collective agreement is concluded for an indefinite period and the employer gave notice to terminate same.

What are the consequences when a party to a plant level collective agreement, concluded for an indefinite time period, gives notice to terminate such collective agreement?

In terms of s23(2), a collective agreement binds, for the whole period of the collective agreement, every person so bound in terms of s23(1)(c) (the members of a registered trade union and the employers who are members of a registered employers’ organisation who are a party to the collective agreement, if the collective agreement regulates the terms and conditions of employment, or the conduct of the employers and employees) who was a member at the time it became binding, or who becomes a member after it became binding (irrespective of whether or not that person continues to be a member of such trade union or employers’ organisation for the duration of the collective agreement).

What is the relevant case law development as to a plant level collective agreement that has an expiry date, i e does such collective agreement continue to be of force and effect after such expiry date?