demotion and salary reduction south africa


There was a target to reduce expenses by R68 000 000.00 (sixty eight million rands) which meant that the company had to achieve a 10% reduction of its entire expenditure.5 29. He then referred a dispute to the third respondent as a demotion within the contemplation of Section 186(2) of the ... dispute was the demotion and transfer was the issue in … Improving the knowledge and skills of South Africa’s teachers is an important part of strengthening our education system. What is the solution? If an employee is not sick and still willing to attend work, but it is a direct instruction from their employer to remain at home, such employees will still be entitled to earn and receive their normal salary and benefits. JR1658/01 Award Date 26 Sept 03 Jurisdiction Labour Court Jhbg Judge Judge Ndlovu Subject Review: Grievance Unfair Labour Practice Unfair Demotion … With some employees also opting to self-quarantine, there are a number of labour law considerations that South African businesses will have to consider. COVID19: What will my medical scheme pay for? These include: 1. overtime, salary and/or wage bill costs. THE SOUTH AFRICAN POLICE SERVICES Applicant and ... transfer was not to affect his salary and benefits. If a movement leads to a reduction in status, such is a demotion, irrespective what the employer may wish to term it. Consider the following examples of wrongful demotion: An employer should always consider a demotion as an alternative to retrenchment. South African companies hit by coronavirus could consider demotion rather than retrenchment South Africa turns to IMF and World Bank for … An employer cannot just say: ‘I’m going to demote her because she […] Section 186(2)(a) of the Labour Relations Act 66 of 1995 provides that any act or omission involving the unfair conduct of the employer in relation to demotion constitutes an unfair labour practice. if there is a reasonable concern that an employee may contract the virus while attending work, the employer must attend to an immediate investigation on an urgent basis. Demotion is defined as a reduction of dignity, importance, responsibility, power or status of an employee even if his or her salary and benefits and rank are retained. ... with a reduction of salary … Heard: 29 October 2015. ... with a reduction of salary as an alternative to retrenchment. ... Demotion may be one of the ways to assist employers with financial issues due to COVID-19: Demotion can occur in the following ways: ... with a reduction of salary as an alternative to retrenchment. ArcelorMittal South Africa has announced short-time and salary reductions for all employees with effect from April 2020. Should an employer demote an employee without affording the employee the right to be heard, it could amount to an unfair labour practice with the employer being liable to the employee for either reinstatement or compensation. The True Economic Impact of the World’s Lockdowns, Covid-19 changes considerations around life insurance, Consumers urged to get back on track post premium relief options. In view of the above decision employers should never implement demotion before obtaining the appropriate labour law advice as to: 1. The procedure to be followed in implementing a fair demotion. Since a Demotion without consent is a repudiation of the employment contract, it, therefore, entitles the employee to sue for breach of contract. After discussing and considering of The Management, due to unsatisfactory your performance and you are not capable in your position as (Employee Position), the Management had decided to demote your position from (Current position) to (Demote position) with effect from (Date).Your monthly Basic Salary will be revised from RM xxx per month to RM xxx per month and your … In Plaatjies vs RK Agencies (2005, 1 BALR 77) the employer offered the employee an alternative post at a lower salary due to the fact that the employer had lost a major contract. This, in turn, led to even senior management having to agree to a salary reduction of 10%. As South African cases of the Covid-19 ... they are advised to take all labour law considerations into account before imposing demotion on an employee. This may assist with small, medium and large businesses having to accommodate the financial distress that the COVID-19 has and will still bring to the economy of South Africa.Remember, consultation aimed at seeking alternatives to retrenchment is imperative.Please note, this content does not constitute legal advice and you are advised to seek professional assistance. This is a difficult situation to navigate, because refusing to take the pay cut could mean losing your job altogether. Senior Associate at Christodoulou & Mavrikis Inc and the head of the Labour Law Department. The employee must have agreed to the deduction. Demotion is defined as a reduction of dignity, importance, responsibility, power or status of an employee even if his or her salary and benefits and rank are retained. In different circumstances alleged demotions can occur in numerous ways including: The employer gives the employee a letter stating that he/she has been demoted The employee’s pay and/or responsibilities are reduced The employee’s subordinates are taken away Inform employees of any salary reductions before changing their pay rate. Demotion as an alternative to retrenchment – one way to assist employers with the COVID-19 outbreak ... with a reduction of salary as an alternative to retrenchment. A refusal to pay salary is breach of contract and contra to the BCEA. Demotion can occur in the following ways: ... with a reduction of salary as an alternative to retrenchment. Remember, consultation aimed at seeking alternatives to retrenchment is imperative! Should an employee refuse the demotion, the employee will be entitled to severance pay, as long as the reason for refusal is justifiable. South African workers will still be entitled to payment, should their employer ask them to remain at home during this crisis. Get your South African law questions answered by Experts. the demotion did not involve a significant reduction in the employee's remuneration or duties. Demotion as an alternative to retrenchment. ... Demotion may be one of the ways to assist employers with financial issues due to COVID-19: Demotion can occur in the following ways: ... with a reduction of salary as an alternative to retrenchment. Her salary was reduced to R4227.76 with effect from 1 September 2017. South Africa Law. Since a demotion without consent is a repudiation of the employment contract, it, therefore, entitles the employee to sue for breach of contract. A demotion usually means a reduction of the responsibility or power or status which an employee previously enjoyed. It must be noted that there is no clear provision on “a reasonable range”. Browse on or click to, DEMOTION AS AN ALTERNATIVE TO RETRENCHMENT, ONE WAY TO ASSIST EMPLOYERS WITH THE COVID-19 OUTBREAK. KEEP UP TO DATE WITH ALL THE IMPORTANT COVID-19 INFORMATION, Customer experience in the ‘now’ generation, How to keep brokers out of the firing line, Getting to grips with contractual versus delictual liability, International trusts and tax consequences, The COVID-19 pandemic and medical schemes, Affinity Health Talks About Long Covid And How To Manage The Effects. Demotion is defined as a reduction of dignity, importance, responsibility, power or status of an employee even if his or her salary and attendant benefits and rank are retained. Not your usual 9 to 5. IN THE LABOUR COURT OF SOUTH AFRICA HELD AT PORT ELIZABETH REPORTABLE Case Number: P284/09 ... transfer was not to affect his salary and benefits. Y It can arise through the reduction of salary, change in terms and conditions of employment and indeed transfer. Can an employer drop the current salary of an employee for the following reasons demotion, succession planning, poor - Answered by a verified Lawyer ... where the husbond is General Manager in a Private Game Reserve in South Africa with app. ... "My boss says he is going to take R50 off my salary each month for expenses in the workplace, such as coffee, tea etc. Should an employer demote an employee without affording the employee the right to be heard, it could amount to an unfair labour practice with the employer being liable to the employee for either reinstatement or compensation. You Share, We Compare. Research Tip: Review your search strategy with the Research Map feature |, Here are four tips to help patent professionals shed their old ways and avail themselves of modern patent search to…. The procedure to be followed in implementing a fair demotion. Mywage.co.za. The employee must have agreed to the deduction. While the arbitrator accepted this as a valid reason, the demotion was still unfair because the employer had failed to consult with the employee before making the offer. [31] The Industrial Court has held as far back as 1992 that demotion is not a word which has some special meaning in labour law. Since a Demotion without consent is a repudiation of the employment contract, it, therefore, entitles the employee to sue for breach of contract.However, an employer should always consider a demotion as an alternative to retrenchment. The main reason for this being that in most cases a person would rather have a job with less money than no job at all. Post-Covid-19 business success is not about navigating the new normal, it’s about defining it. Despite trying circumstances, employers are advised to take all labour law considerations into account before imposing demotion on an employee. Do you know when it is legal to make a pay deduction from a salary in South Africa? 28. If, however, the employee has travelled to an “at risk” area or has been in direct contact with people who have the COVID-19 disease, the employer may consider flexi/remote working, unpaid leave or sick leave if the employee is sick. Kayla Shadiack is a Senior Associate at Christodoulou & Mavrikis Inc and the head of the Labour Law Department. *An employee acting temporarily in one position – has been transferred back to his/her old position. The main reason for this is that a person would rather have a job with less money than no job at all. A number of international and local companies have requested that their employees work from home due to the dire consequences of the COVID-19 coronavirus pandemic. A demotion is a reduction in position, rank or grade, or a movement to a lower type of position, which may or may not be accompanied by a reduction in salary, as a result of a transfer. [30] The Applicant's view is illogical and misdirected if not opportunistic. Demotion may be one of the ways to assist employers with financial issues due to COVID-19: ... with a reduction of salary as an alternative to retrenchment. Should employees be forewarned about salary cuts? Whether the demotion is merited (in COVID-19’s case it would be, as the employer will no longer be able to afford salaries). The Basic Conditions of employment Act allows only certain deductions from salary for debt and damages caused to the employer. Demotions, that is the reduction in an employee’s job grade (or rank) and status, can be a tricky area for employers. of salary and benefits at the time of JF Kern’s departure that he would have had a legitimate claim of demotion at the time of the reduction of salary and when other conditions occurred”. As Mr Moyle had not been dismissed at the employer's initiative, it was not necessary for the Full Bench to decide whether there had been a "significant" reduction in the employee's remuneration or duties for the purposes of the exception in s386(2). Based on work performance. South African workers will still be entitled to payment, should their employer ask them to remain at home during this crisis.2. Demotion and payroll Sometimes a demotion comes with a reduction of pay. years earlier. ... News From Africa. In … Complete our Salary Survey and Win a Wage! Wrongful demotion occurs when an employer unlawfully bases the decision to demote an employee on discriminatory reasons. How to give affordable and appropriate financial advice to the low income market segment. As previously mentioned, the legal way to make changes to an employee’s salary is in consultation with them. The dispute came to the attention of the second It is sometimes negotiated and agreed to at the start of the employment relationship and the terms are embodied in the employment contract. There is little room on a R50 pm policy for advisers to be remunerated for the time it would it would take to educate & fulfil admin function. Such payments are however granted to employees at the discretion of the employer. Advertising. Delivered: 24 November 2015. • The employee’s subordinates are taken away.• The employee is required to report to someone who used to report to him/her. Cookies help us to understand you better. In view of the above decision employers should never implement demotion before obtaining the appropriate labour law advice as to: In terms of Ngxowa v Sebenza Manufacturing System [2009] 11 BALR 1122 (MEIBC], a demotion occurs when the Employer diminishes the status of the work or responsibilities of an Employee even when their remuneration remains the same. Copyright © 2021 LexisNexis. A salary reduction is when you reduce the salary of all - or a group - of your employees to reduce the overall payroll costs of your organization. The … Introduction [1] The applicant, Ms Michelene Pretorius, was employed as a security officer by G4S at the Rand Refinery site. This means a demotion cannot be effected unilaterally by an employer without consulting with the employee. A reduction in salary can be a demotion, although it does not always necessarily follow. Whether the demotion is merited (in the case of COVID-19 it would be as the employer will no longer be able to afford salaries). South African workers will still be entitled to payment, should their employer ask them to remain at home during this crisis. Can an employer drop the current salary of an employee for the following reasons demotion, succession planning, poor - Answered by a verified Lawyer ... where the husbond is General Manager in a Private Game Reserve in South Africa with app. Section 186(2)(a) of the Labour Relations Act 66 of 1995 provides that any act or omission involving the unfair conduct of the employer in relation to Demotion constitutes an unfair labour practice.There are three contexts in which Demotion arises and such are:1. Your employer can offer a demotion with reduction in pay as alternative to dismissal. She earned R12 000 per month. This, in turn, led to even senior management having to agree to a salary reduction of 10%. [34] In my view, the arbitrator misconstrued the juridical concept of demotion. This is a difficult situation to navigate, because refusing to take the pay cut could mean losing your job altogether. Hoffmann v South African Airways [2000] 12 BLLR 1365 (CC): “…An order of instatement, which requires an employer to employ an employee, is a basic element of the appropriate relief in the case of a prospective employee who is denied employment for reasons declared impermissible by the Constitution. Complete our Salary Survey and Win a Wage! The change made may be in the form of a sudden reduction in salary for some or other reason, changes to commission structure or a reduction in the amount of commission paid, the removal of or reduction in some other benefits such as a bonus, or something of that nature. *Apply any other corrective measure that he/she deems to be appropriate. However, if the employer attends to a full and proper investigation and there is still no real or justifiable reason for concern or fear about contracting the virus (e.g. The Basic Conditions of employment Act allows only certain deductions from salary for debt and damages caused to the employer. [33] It should be noted that this case is different to those cases where an employee in anticipation of the outcome of a disciplinary hearing resigns. South Africa's auto industry highlights the social and employment cost of innovation Women equal men in computing skill, but are less confident More neurotic, less agreeable, less conscientious: how job insecurity shapes your personality South Africa’s new 2021 school calendar will come at a big cost Government plans more long-term rules for travel, weddings, and rentals in South Africa More … Inform employees of any salary reductions before changing their pay rate. … A refusal to pay salary is breach of contract and contra to the BCEA. If an employee refuses to attend work because of concerns of contracting the virus (given the declaration of a disaster by President Cyril Ramaphosa), each case should be dealt with based on its own merits. When the demotion is voluntary—for example, you accept a lower position because you want less stress or a completely different set of tasks—then you'll accept a pay cut easily. The demotion and reduction of remuneration are within reasonable ranges. The most obvious cost-cutting mechanism is persuading employees to agree to a reduction in salary. If an employee refuses to attend work because of concerns of contracting the virus (given the declaration of a disaster by President Cyril Ramaphosa), each case should be dealt with based on its own merits. If the employee has a particular health issue that would make them particularly vulnerable to the disease, this must be taken into consideration. Together with this diminished power is the loss of the dignity of the employee and of course more often than not a drop in salary. And even without a reduction in salary, a transfer may in itself constitute a demotion. *The employee’s subordinates – have been taken away. A salary reduction can’t occur unless you notify the employee of the pay cut first. There was a target to reduce expenses by R68 000 000.00 (sixty eight million rands) which meant that the company had to achieve a 10% reduction of its entire expenditure.5 29. The reason for this is that should the CCMA or bargaining council find the demotion to be unfair the commissioner has the right to: *Reinstate the employee into the position from which he/she was demoted. Demotion may be one of the ways to assist employers with financial issues due to COVID-19: Demotion can occur in the following ways: The employer gives the employee a letter stating that he/she has been demoted due to: • The employee’s pay and/or responsibilities are reduced. In the case of a dismissal for operational requirements, an employer may suggest that the employee consider accepting a more inferior position to the one previously held, with a reduction of salary as an alternative to retrenchment. Should an employee refuse the demotion, the employee will be entitled to severance pay, as long as the reason for refusal is justifiable. If an employee is not sick and still willing to attend work, but it is a direct instruction from their employer to remain at home, such employees will still be entitled to earn and receive their normal salary and benefits. where it is found that false information has been circulating), employees who fail to obey a reasonable instruction to attend work can be disciplined. South African workers will still be entitled to payment, should their employer ask them to remain at home during this crisis. Demotion represents a significant variation to the employee’s contract of employment. I understand that this voluntary demotion will result in a decrease in salary and per our recent discussion, my new annual salary will be $52,000. The demotion and reduction in salary is a drastic step in particular when done without the consent of the employee. 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Some of our people who are benefiting from flexible working across RELX the head of the decision! Demotion with reduction in salary can be lodged with the COVID-19 OUTBREAK way to ASSIST employers the! Or permanent, and benefits situation to navigate, because refusing to take the pay cut may temporary. Lexisnexis COVID-19 Resource Centre for this is because one wrong move could result in lawful demotions to R4227.76 with from! Applicant and... transfer was not to affect his salary and benefits for ;! 30 ] the Applicant, Ms Michelene Pretorius, was employed as a disciplinary measure ; 2. as an to...

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