The COVID-19 pandemic has already had severe implications, either directly or indirectly, for many South Africans, as it was responsible for a massive countrywide economic crisis. Since the start of the pandemic, many employers have been concerned about staying operational, especially with regard to loss of income and their obligation to employees.
When employers cannot afford to employ their employees for the ordinary hours of the working week due to slackness of trade, a shortage of raw materials, a general breakdown of the plant or machinery or any other unforeseen emergency, they may implement short time. This, however, is subject to following the correct procedure.
Short time and COVID-19
With regard to the COVID-19 pandemic as an unforeseen emergency, employers can implement short time when the typical volume of work has decreased drastically, but certain duties still need to be performed.
With regard to the COVID-19 pandemic as an unforeseen emergency, employers can implement short time when the typical volume of work has decreased drastically, but certain duties still need to be performed.
Employees will then work fewer hours and will be compensated accordingly. This arrangement is subject to remuneration for a minimum of four hours worked in terms of Section 9A of the Basic Conditions of Employment Act, 1997 (Act 75 of 1997). When short time is implemented, the available work must be evenly distributed among all employees as far as possible.
The employerâs responsibilities
Working hours form part of the employment contract and the employer cannot make any changes unilaterally. In order to implement short time, there must be an agreement in place between the employer and employee in which the employee has given the employer permission to do so. Employers should include a short-time clause in the employment contract to be proactive, as conditions that lead to the implementation of short time are often unforeseen. This can save employers a lot of time and money.
If there is no prior agreement in place between the employer and employee with regard to short time, the parties must consult about the change in working hours. The consultation process is crucial, and the employer must be sure to consult with all the parties involved. This means that a trade union must be included in the consultation process if it is represented in the workplace.
When the implementation of short time is considered, the following questions must be answered:
- When will short time be implemented?
- How long will short time be implemented for?
- How many employees will be affected/which divisions will be affected?
- What form of short time will be implemented? For example, will working hours be reduced or will the number of working days per week be reduced?
Employees are entitled to claim benefits from the Unemployment Insurance Fund (UIF) for the shortfall in remuneration compared to what they usually earn. The UIF benefit will be determined on a sliding scale.
Key considerations
One of the advantages of short time is that no dismissals may take place and employees can return to working their usual hours as soon as the employerâs circumstances stabilise and the short-time period ends.
Take note that as each workplace differs, the employerâs unique circumstances will determine the right solution to be considered. Employers must follow the correct procedure in terms of labour law, as non-compliance poses a serious business risk for employers.
In addition, the Department of Employment and Labour requires employers to keep a detailed logbook of the hours worked by employees. These records can be managed manually or electronically by using a clocking system. â Adv Christoff Dames
For more information, contact Ansofie van der Walt on 0861 101 828 or send an email to ansofie@lwo.co.za.
