The Minister of Employment and Labour has extended the terms of the Main Agreement of a newly formed Bargaining Council for the Fast Food, Restaurant, Catering and Allied Trades (‘BCFFRCAT’) to establishments across the entire country.
The extension now effects everyone in the industry across South Africa except for employers and employees who are subject to the collective agreements in the bargaining councils in the Gauteng and Pretoria regions. The main agreement will amongst other things regulate wages, working hours, commission, leave and night work to mention a few.
The extension will also add a burden to Employers as they now must pay the following fees per month to the council.
Levy for Council expenses: R10.00 per month per employee of which a R5.00 deduction from each employee’s wages must be made.
Dispute resolution levy: R6.00 per month per employee of which a R3.00 deduction from each employee’s wages must be made
General: R25.00 per month per establishment
Funeral benefit: R25 per month per employee of which a R12.50 deduction from each employee’s wages must be made
Provident fund: 10% of employees’ monthly wages of which a 5% deduction from each employee’s wages must be made
Uniform: R17.50 per week payable to each employee if employees are required to wash their own uniforms
Annual bonus: Every December an obligatory bonus of one week’s wages is payable to employees that have been employed for at least 12 consecutive months, and two weeks’ wages is payable to employees employed for at least 24 consecutive months.
There are also administrative tasks that need to be performed by the Employer on a monthly basis
Employers may apply for an exemption but the grounds for exemption is mainly limited to small employers with less than 10 employees.
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