HomeHome SearchSearch MenuMenu Our productsOur products

Stay out of the CCMA. Obey these three legal obligations when paying your bonuses

by , 10 November 2014
If you give your staff bonuses, you have to meet three legal obligations. If you don't, you'll end up at the CCMA. But the problem is not every one knows what these obligations are.

Take note of these three legal obligations you have to comply with and your employees won't take you to the CCMA for unfair labour practice...

***************************************
 
*****************************************

The three legal obligations you must comply with

1. If you've guaranteed your employee's bonus, you can't decide to remove this guarantee from his contract and replace it with a discretionary bonus.
 
Warning! If you do this, it's a breach of contract. You must get your employee to agree to such a change. Your employee can take you to the CCMA if you breach his contract. He'll accuse you of unfair labour practice or unfair discrimination in which he can claim payment of the amount he's entitled to.

2. You must treat all employees the same. You could be guilty of unfair discrimination if you treat employees who are in similar positions differently. For example, by paying bonuses to some and not to others. If this unfair treatment coincides with differences in race, gender, or any other discriminatory ground, you may be guilty of unfair discrimination (Employment Equity Act, Act 55 of 1998).

3. Record, in writing, the details of all payments your employee is entitled to (Section 33 of the BCEA). Clearly define details of the type of bonus and when you'll pay it in your employment contracts.

P.S. The Department of Labour is notorious for conducting Labour Inspections at this time of the year. The first thing they check is if your UPDATED legal wall charts are displayed at your workplace. Click here to find out more…


Related articles




Related articles



Related Products



Recommended for You 

  Quick Tax Solutions for Busy Taxpayers – 35 tax answers at a glance



Here are all the most interesting, thought-provoking and common tax questions
asked by our subscribers over the last tax year – everything from A to Z!

To download Quick Tax Solutions for Busy Taxpayers – 35 tax answers at a glance click here now >>>
  Employees always sick? How to stop it today



Make sure you develop a leave policy to regulate sick leave in your company.

BONUS! You'll find an example of the leave policy and procedure in this report.

To download Employees always sick? How to stop it today click here now >>>
  Absenteeism: Little known ways to reduce absenteeism



This FREE e-report will tell you how you can reduce absenteeism in your workplace while avoiding the CCMA and without infringing your employees' labour rights.

To download Absenteeism: Little known ways to reduce absenteeism click here now >>>
  7 Health & safety strategies to save you thousands



Don't let a health and safety incident cost you one more cent. Implement these seven
strategies in your company today.

To download 7 Health & safety strategies to save you thousands click here now >>>