Hospitality Sectoral Determination 1 July 2008 new rates.
In May 2007 the long awaited Sectoral Determination for the hospitality sector were gazetted. The conditions of employment for the hospitality sector, which covers all areas except those already covered by bargaining councils. 1 July 2008 the 1st increases at 12.1% is applicable.
These rates are as follows:
The new minimum wage employers employing for less than 10 employees is R 1659.08 per month, R382.93 per week and R 7,59 per hour.
The new minimum wage employers employing for more than 10 employees is R 1849.65 per month, R426.88 per week and R9.48 per hour.
To download the full Hospitality Sectoral Determination / conditions
of employment click here. (SD 14)
What's new in the Hospitaly SD 14:
- A night shift allowance is required for employees working after 18:00. This amount is not specified, thus at managements discretion. Remember to display this amount on the payslips to your employees as well.
- Sundays are not regarded as a normal working day. Work on Sundays
should be remunerated at 1.5 times the employees normal hourly rate if
he/she work on Sundays on a regular basis and at double their normal
hourly rate if they attend work on Sundays on a non-regular
basis.
Please ensure that you are aware of all the content in the Sectoral Determination, as we are merely giving some tips on certain areas and will advise that you obtain either our assistance or the assistance of a labour specialist in your area to guide you through implementation of changes and/or set up of contracts:
- Due to the industry being basically seasonal bound, it is important
to set up your employment conditions where your employees already agree
to work overtime, Sundays, Public Holidays etc. The law states that you
may not require or permit and employee to work overtime, Public
Holidays or Sundays, subject to an agreement and the whole idea is to
include this agreement already in their contracts of employment. Don't
simply change your contracts without consultation if you already have
staff where this was not specifically agreed, go through the proper
process of consultation.
- In many restaurants/hotels the employer supplies food and transport
with no charge to employees. If you have done this and have never
charged a contribution for food from your staff, you have the right to
engage in a negotiation with them and obtain authorisation for such
deduction. (Only consider this option due to operational requirements
and not simply to do staff in, as this is not the idea of these
tips.)
- Many employers make the mistake of misinterpreting the clause
surrounding supply of transport. (see SD 14) Nowhere is it stated that
you are required to pay for the transport after 18:00 and before 23:00
(nighshifts). You are merely required to ensure that transport is
available. Also make sure that you are aware of the Night Shift
Allowance that is applicable here.
- Don't make the mistake of simply implementing a charge/deduction as you might end up with a CCMA case for unilateral change in the employment conditions or get taken to the Department of Labour for making unauthorised deductions.
YLPS has a mini or comprehensive labour guide available for employers in all sectors and you are welcome to order your copy of the mini labour guide, which contains a fixed term contract, permanent contract, code of good practice , disciplinary code, grievance procedure and the much needed admin forms. The comprehensive labour guide contains everything the mini has, except a set of rules & regulations is included, tailor made to the client and sector the company falls under. The mini guide is available at R800 and the comprehensive guide is available at R1400.

