Dear Reader

Welcome to your Labour Bulletin.

In a time when South Africans seemed to have slowed down to soak up the atmosphere of the World Cup, you can be sure there are a few of your employees who are picking up the slack. These are probably your managers. It reminded me of an interesting subscriber query I got a little while ago…

Must I pay my manager overtime?

Question

If a manager’s salary is R12 500 gross monthly and he gets out R8 300, must I pay him overtime? Is he automatically entitled to certain perks such as a 13th cheque or bonus, or is this at the company’s discretion?

Answer

The manager's earnings are above the BCEA threshold of R149 736.00 per year (i.e. R12 500 x 12 = R150 000). Therefore, he’s not entitled to payment for overtime worked. If he’s also a senior managerial employee as defined in the BCEA, he’s also not entitled to overtime.

Bonuses are at the company’s discretion unless you have guaranteed a 13th cheque in your contract of employment.

Have you included this clause in your employment contracts?

I hope this helps if you had the same question. This is just the sort of clause you must include in your employment contracts – then there can be no argument! Find out the other essential clauses to include in chapter E01 of your Labour Law for Managers Handbook. If you’re not a subscriber, it’s quite possible you’re missing vital information. 

Until next time

Sarah-Jane Bosch
Managing Editor:
Labour Law for Managers and
Practical Guide to Human Resources Management