The Hairdressing, Cosmetology, and Beauty industry in South Africa is a dynamic sector that requires operational staff to be in optimal health to provide top-notch services to clients.
However, like any other profession, individuals working in this industry are susceptible to illness and injury, which could result in time off work.
Recognising this, the National Bargaining Council for the Hairdressing, Cosmetology, Beauty, and Skincare Industry established a Sick Pay Fund to pay eligible employees their sick leave entitlement during such periods as well as extend their sick leave entitlement.
What is the Sick Pay Fund?
The Sick Pay Fund is a mandatory fund established under the Sick Pay Fund Committee of the National Bargaining Council for the Hairdressing, Cosmetology, Beauty, and Skincare Industry. Its primary objective is to compensate employees within this sector when they are unable to work due to illness, injury, or hospitalisation.
Who Contributes to the Sick Pay Fund?
The Sick Pay Fund is jointly funded by both employers and employees within the industry. A total of 0.5% is deducted from the employee’s basic salary each month and contributed to the fund, with employers also making the same 0.5% contributions on behalf of their employees.
Employers and Employees Should Read and Adhere to the Sick Pay Fund Rules
The Sick Pay Fund is designed to compensate employees during times of illness or injury, but this protection comes with specific responsibilities. Employers and employees must familiarize themselves with the fund's rules to ensure they remain eligible to claim from the fund.
Here are the key rules that have changed and are effective as of 20 May 2024:
The Sick Fund Management Committee approved several amendments to the Rules of the Sick Pay Fund, which had been agreed upon by the Parties to the Council. For your convenience and ease of reference, a summary of the changes is included below and a copy of the Rules highlighting the changes may be accessed via this link:
Summary of Changes:
• Sub-clause 5.3 - reference to the prescribed minimum wages/salaries and the wage schedules have been included for purposes of clarity. Furthermore, it is expressly stated that nothing in Sub-clause 5.3 prevents a member from claiming the difference between the amount paid to the member by the SPF and the actual basic salary/wage of the member from the Employer where the contributions to the SPF are based on the prescribed minimum, but such member receives a wage/salary in excess of the prescribed minimum.
• Sub-clause 5.5.1 - provision is made for a member to transfer 3 days from their 6-day period leave entitlement of 33 days to their 7-day period leave entitlement of 33 days, or vice versa.
• Sub-clause 5.6 - when submitting a claim to the SPF, a medical certificate issued by a registered medical practitioner, a registered nurse or a registered traditional healer (“the practitioner”) will not apply if the member has been absent from work for less than 2 consecutive days or less than 2 occasions (for 2 consecutive days and less) during an 8-week period.
• Sub-clause 8.3.2.4 - the requirement to submit, with the claim form, a salary advice slip/payslip which indicates both the member`s gross and nett salary and proof that the contributions to the SPF have been deducted, is deleted.
• Sub-clause 8.7 - provides that the SPF will execute its best endeavours to make payment to the member in respect of a claim, on the member’s usual payday following the claim being submitted, or the date upon which the submission of a claim has fully complied with the requirements.
• Clause 9 - while a member will have no claim against the SPF if his/her employer is in arrears in respect of contributions to the SPF, the employee is not prevented from claiming payment for sick leave due to illness or injury from their employer and shall notify the Bargaining Council for purposes of enforcing compliance with the Rules of the SPF.
If the arrears in the employer’s and members’ contributions are proven to result from an administrative error or oversight on the part of the Council, the member will not be disqualified from claiming.
Any exemption that is granted in relation to the collective agreement or these Rules, will only apply from the date upon which the Exemption Board hands down its decision to grant exemption.
Understanding the fund's rules, eligibility criteria, and benefits is essential for both employers and employees to follow the sick pay fund claims procedure when claiming. For detailed information on the Sick Pay Fund rules and the claims process, employers are encouraged to consult the National Bargaining Council's Sick Pay Fund Administrator or contact your EOHCB representative for assistance.
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