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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…

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