Basic Guide to
Deductions (Farm Workers)
Employers may only
deduct money from a worker’s pay if the worker agrees or if they are required
to do so.
Application
Sectoral Determination 8: Farm Worker Sector applies to all workers on a farm including
The sectoral determination does not apply to workers covered by -
The Basic Conditions of Employment Act applies in respect of any matter not covered by this sectoral determination.
Basic conditions of
employment for farm workers
Conditions
for Deductions
Employers may
not deduct for -
·
training;
·
tools
and equipment;
·
work
clothing; or
·
fines.
Employers may
deduct money from a worker’s pay only if –
·
the
worker agrees in writing to the deduction of a debt;
·
the
deduction is made in terms of a collective agreement, law (e.g. UIF contributions),
court order or arbitration award; or
·
the employer overpaid the worker by mistake.
Employers may
deduct no more than 10% of a worker’s wage for each of the following:
·
accommodation
(subject to certain conditions);
·
food;
·
loans
and advances;
·
amounts
paid to a third party:
o
holiday;
o
medical
aid;
o
insurance;
o
savings;
o
pension
fund;
o
any
registered trade union in respect of subscriptions;
o
repayments
of loans granted for a dwelling and accommodation to -
§
any
bank;
§
building
society;
§
insurance
business;
§
registered
financing institution;
§
local authority.
Conditions for Deductions for
Accommodation
Employers may
only make deductions for accommodation if -
·
the
worker is at least 18 years old;
·
water,
electricity and other services are not also deducted;
·
the
amount deducted is not more than the cost to the employer;
o
the
house has –
o
a
roof that is durable and waterproof;
o
glass
windows that can be opened;
o
electricity
available inside the house;
o
water
available on tap inside the house;
o
a flush
toilet or pit latrine available in, or in close to, it; and
o
a size of not less than 30m².
Where 2 or more
workers share accommodation, employers may only deduct a total of 25% of the
relevant minimum wage from all workers combined. Employers must deduct
equal amounts from each worker.
Deductions
for Damage or Loss
Deductions for
damage or loss caused by the worker may only be made if –
·
the
employer has followed a fair procedure and given the worker a chance to show
why the deduction should not be made,
·
the
worker agrees in writing, and
·
the total deduction is not more than 25% of
the worker’s net pay.
Based on
Legislation in Section
34, of the Basic Conditions of Employment Act
Deductions
for Benefit Funds
Employers must
pay deductions and employer contributions to benefit funds (pension, provident,
retirement, medical aid, etc.) to the fund within 7 days.
Based on
Legislation in Section
34, of the Basic Conditions of Employment Act