Ensuring a smooth December payout season (annual leave)

Last week we gave three tips on how to navigate your way through the Holiday Bonus payouts

The NBCRFLI has three main benefit funds namely the Sick Pay Fund, the Leave Pay Fund and the Holiday Bonus Fund.
Every month, employers contribute towards these funds on behalf of their employees (have a look at this youtube video for a quick explanation of all the funds payable each month) and during the employee’s annual leave period, the Bargaining Council pays out the year’s contributions to each individual employee.

A company might grant their employees their annual leave throughout the year, or the company might close over the Christmas period and oblige all their employees to take their annual leave during this time. Whichever way your company chooses to do it the following points need to be remembered:

  1. The NBCRFLI can only pay out funds that are available

    Every month, the employer contributed towards the Leave Pay Fund on behalf of each employee. If there are only 2 contributions available, then the NBCRFLI can only pay out two contributions. It is therefore important to check whether the employee has enough contributions available to submit a claim.

  2. Do not double-pay your employees

    Perhaps it is silly to state the obvious, but remember to not pay your employees for the period that they go on leave. This will lead to a very unnecessary over payment. If the employee goes on leave for 3 weeks, then only pay him / her for the remaining 1 or 2 weeks that he / she was actually at work. The balance will be paid out of the funds at the NBCRFLI.

  3. Make sure your employees go on leave every year

    Don’t let their leave days accumulate. No company can afford to get by without an employee for 5 weeks in one go, and neither should an employee be allowed to skip a year without the prescribed 3 weeks’ break.

  4. Remember to still make the deductions while your employee is on annual leave

    Deductions for the Wellness Fund, Council Levies and Provident Fund still need to be made for the weeks that the employee goes on leave. The best practice for this is to take everything in the last week before the employee’s leave commences.

If you need assistance with anything related to the NBCRFLI payouts, give us a call 🙂