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Navigating through the December payouts – (Sick Bonus)

We have touched on the Holiday Bonus as well as the annual leave payout

Now let’s talk about the Sick Bonus.

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).

The Sick Pay Fund is used to pay the employee when he / she goes on sick leave, but once every three years, the employee receives a Sick Bonus payout.
This is a great incentive offered by the NBCRFLI for employees to not take unnecessary sick leave. It is important to understand how this works, as most of our clients’ annual queries are about the sick bonus payouts.

An employee is only entitled to a Sick Bonus every THREE years (the employee’s commencement date plays a big role here).

If the employee commenced employment on 1 January 2009, then a payout was due to him in January 2012 as well as during January 2015 and also in January 2018. The cycle date is also the commencement date.

If the employee has used up all of the sick leave available, then there will be no bonus payout

In rare cases, employees do fall very ill and they end up using all of the available funds in their Sick Fund account at the NBCRFLI. The logical effect of this is that there will be no sick bonus payout.
If the employee has used up some of the sick leave funds available, then the sick bonus will just be less than what it could have been.

It is advisable to keep a list of employees whose sick leave cycle is due for a bonus payout for ease of reference.

This helps in answering queries faster and sometimes means that you have queried a non-payment at Council before the employee raised the issue :-). This list is easily generated by using the NBCRFLI’s online system.

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

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 🙂

Goodbye KZN, Hello Mpumalanga!

We are travelling through South Africa as a family.

For the business this is good, because we are getting new clients all over South Africa. Processing payrolls can be done from anywhere in the world, as long as we have a strong internet connection.

Our Johannesburg office is still being managed from Johannesburg, where payrolls are processed and d-forms balanced; and consultations regarding labour relations are being done by our LR expert – Wynand Stapelberg (who is now even stronger after finishing the half-marathon on the great wall of China!).

We have been in KZN for 3 months now and we are moving north into Mpumalanga for August.

We invite you to give us a call if you run your transport company from Mpumalanga or even if you just have a depot there.

What can we do for you?

  • Year-end payout audit – we can go through all your employee records and ensure that everything is prepared to ensure a smooth year-end payout
  • Payroll setup / audit – we can check to see if your payroll is set up correctly so as to ensure compliance with the NBCRFLI Main Agreement
  • Payroll Processing – you can outsource your complete payroll to us and have some peace of mind 🙂
  • NBCRFLI training – we can present our training course at your company or you can buy it online at www.mediantacademy.co.za

 

Contact us anytime for more information on our services 🙂

Bargaining Council Agents – Their Powers & Functions

Collective Agreement Enforcers

If you have ever worked with a Bargaining Council agent, you might be wondering where their levels of authority start and end.

In this video, we aim to clarify it for you.

BCEA or Bargaining Council Collective Agreement?

If you work in HR or payroll, you probably know most clauses in the BCEA. It almost becomes part of your natural instinct.

This becomes dangerous if you happen to work in an industry that is governed by a Bargaining Council. The rules of a Bargaining Council’s Collective Agreement supersedes the BCEA every time.

If you work in the Transport and logistics industry (freight), you will definitely benefit from purchasing our second module in our course “Understanding the NBCRFLI”. In this module we work through the entire Collective Agreement. Every. single. clause.

Go on – buy it. You know you want to.

Buy Module 2

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