On the Job with Wouter Booysen: Employers not Obligated to Pay Annual Bonuses

www.MyPE.co.za: Our
reader this week feels that she is fighting a losing battle with her
employer over the non-payment of annual bonuses.

Since joining the company four years ago, the employee has always
received a bonus in December. However, staff were told several months
ago that no bonuses would be paid at the end of this year and no
reasons were given for the decision.

Our reader says that this is unfair, as she has “come to expect” the
bonus as a reward for hard work throughout the year. She would
therefore like to know what the Labour Law states about payment and
non-payment of bonuses.

In fact, the Labour Law is silent on this question.

Payment or non-payment of bonuses is at the employer’s discretion.
Should an employer choose not to give bonuses, he or she may not be
accused of unfair labour practice.

In our reader’s case, her employer is not obligated to continue giving
staff bonuses, especially in light of the current economic climate in
South Africa. I actually feel that he has been fair and has foresight,
since he informed staff six months before Christmas.

An employee should study his or her contract of employment. If it
states that a 13th cheque will be paid annually, only then is an
employer obligated to pay the stipulated amount.

In terms of bonuses, the most common types are Christmas, performance
and production bonuses.

The Christmas bonus – or 13th cheque – is usually classed as a gratuity
or gift of gratitude in recognition of a job well done, or as a “thank
you” for going the extra mile.

However, most employees have come to expect this payment as a right,
entitlement or necessary condition of employment.

At job interviews, it’s common for applicants to ask: “Do you pay a
13th cheque?” This clearly shows that they expect the bonus, regardless
of job performance.

Employers must clarify this from the outset.

Many companies now incorporate the traditional 13th cheque into an
employee’s basic salary or, following a bad trading year, may be unable
to pay the bonus, as our reader’s boss has indicated.

An employer may argue that he or she cannot know months in advance if
bonuses are payable or not; however, any employer should have some idea
of year-end profits by mid-year.

A performance bonus is normally for consistently good performance that
exceeds company standards and is usually calculated on a percentage of
the employee’s salary or wages. A performance bonus can also be paid as
a lump sum to a department, or split up in equal amounts to each
employee in that department.

Whatever the case, the method of calculation must be fair and
equitable.

A production bonus is based not on performance measured against company
standards, but rather on production measured against targets.
Measurement is also based on quality of production.

In summary, employers do not have to pay annual bonuses and may
implement this decision after negotiations, even if some employees do
not agree to it.

Of course, a few disgruntled staff members may proceed with a claim of
unfair labour practice, but they will be unsuccessful.

Booysen
& Rossouw Attorneys
in Port Elizabeth specialises in
the fields of labour relations and injuries on duty. The firm also
deals with all other legal matters.

CLICK
HERE
to have
your labour
and other workplace related questions answered

courtesy of Coetzee Gouws from Full
Stop Communications
.

Port Elizabeth Budget Accommodation

Go to:MyPE.co.za







Join Budget Accommodation Port Elizabeth

Todays Featured Port Elizabeth Accommodation

GuestHouse on Irvine

Guesthouse on Irvine is Value for Money, stylish, convenient and comfortable accommodation suitable for local and foreign business and leisure travelers, families and tour groups. Centrally located, secure and private in a newly refurbished original Victorian home away from home. Nestled in Richmond Hill, your accommodation is just 5 doors from bustling restaurants and unique shops on Stanley Street. You may check in at the guest house and take a gentle stroll to the wide array of trendy restaurants. It truly is Port Elizabeth's best kept secret! Centrally located, Guest House on Irvine is 5 minutes from the airport, beaches, highways, … [Book here...]

More Affordable Port Elizabeth Accommodation Choices

More Port Elizabeth AccommodationHaven't made up our mind yet and want to browse more Port Elizabeth Guest Houses and Accommodation choices?

Go back to the Budget Accommodation home page, browse affordable Port Elizabeth Accommodation on the BnBPE Accommodation Port Elizabeth web site or pop along to MyPE Guest House Accommodation for a heap more choices that will also allow you to book direct with the owner.


On the Job with Wouter Booysen: Employers not Obligated to Pay Annual Bonuses

www.MyPE.co.za: Our
reader this week feels that she is fighting a losing battle with her
employer over the non-payment of annual bonuses.

Since joining the company four years ago, the employee has always
received a bonus in December. However, staff were told several months
ago that no bonuses would be paid at the end of this year and no
reasons were given for the decision.

Our reader says that this is unfair, as she has “come to expect” the
bonus as a reward for hard work throughout the year. She would
therefore like to know what the Labour Law states about payment and
non-payment of bonuses.

In fact, the Labour Law is silent on this question.

Payment or non-payment of bonuses is at the employer’s discretion.
Should an employer choose not to give bonuses, he or she may not be
accused of unfair labour practice.

In our reader’s case, her employer is not obligated to continue giving
staff bonuses, especially in light of the current economic climate in
South Africa. I actually feel that he has been fair and has foresight,
since he informed staff six months before Christmas.

An employee should study his or her contract of employment. If it
states that a 13th cheque will be paid annually, only then is an
employer obligated to pay the stipulated amount.

In terms of bonuses, the most common types are Christmas, performance
and production bonuses.

The Christmas bonus – or 13th cheque – is usually classed as a gratuity
or gift of gratitude in recognition of a job well done, or as a “thank
you” for going the extra mile.

However, most employees have come to expect this payment as a right,
entitlement or necessary condition of employment.

At job interviews, it’s common for applicants to ask: “Do you pay a
13th cheque?” This clearly shows that they expect the bonus, regardless
of job performance.

Employers must clarify this from the outset.

Many companies now incorporate the traditional 13th cheque into an
employee’s basic salary or, following a bad trading year, may be unable
to pay the bonus, as our reader’s boss has indicated.

An employer may argue that he or she cannot know months in advance if
bonuses are payable or not; however, any employer should have some idea
of year-end profits by mid-year.

A performance bonus is normally for consistently good performance that
exceeds company standards and is usually calculated on a percentage of
the employee’s salary or wages. A performance bonus can also be paid as
a lump sum to a department, or split up in equal amounts to each
employee in that department.

Whatever the case, the method of calculation must be fair and
equitable.

A production bonus is based not on performance measured against company
standards, but rather on production measured against targets.
Measurement is also based on quality of production.

In summary, employers do not have to pay annual bonuses and may
implement this decision after negotiations, even if some employees do
not agree to it.

Of course, a few disgruntled staff members may proceed with a claim of
unfair labour practice, but they will be unsuccessful.

Booysen
& Rossouw Attorneys
in Port Elizabeth specialises in
the fields of labour relations and injuries on duty. The firm also
deals with all other legal matters.

CLICK
HERE
to have
your labour
and other workplace related questions answered

courtesy of Coetzee Gouws from Full
Stop Communications
.

Port Elizabeth Budget Accommodation

Go to:MyPE.co.za







Join Budget Accommodation Port Elizabeth

Todays Featured Port Elizabeth Accommodation

Zareba Bed & Breakfast and Self Cater Garden Cottage

Zareba Bed and Breakfast is nestled away within the charming suburb of Richmond Hill in the historical and quaint heart of Port Elizabeth. Richmond Hill has retained much of the atmosphere of the old days. The guest house is in close proximity to the central business district and the freeway system  as well as restaurants, up-market coffee shops, historical monuments, parks, shopping and hospitals.  It is only a short drive from Port Elizabeth airport, Greenacres and The Bridge shopping centres and the Newton Park business district.  All manner of sports and entertainment amenities are within either walking distance or a short drive.  … [Book here...]

More Affordable Port Elizabeth Accommodation Choices

More Port Elizabeth AccommodationHaven't made up our mind yet and want to browse more Port Elizabeth Guest Houses and Accommodation choices?

Go back to the Budget Accommodation home page, browse affordable Port Elizabeth Accommodation on the BnBPE Accommodation Port Elizabeth web site or pop along to MyPE Guest House Accommodation for a heap more choices that will also allow you to book direct with the owner.


0 0 0