COMPLIANCE & NON-COMPLIANCE IN TERMS OF REGISTRATION WITH THE HCSBC, INCLUDING THE PROCESS

Non-compliance orders and the process

1. MANDATORY REGISTRATION WITH THE BARGAINING COUNCIL

All establishments operating within the hair and beauty industry are legally required to register with the Bargaining Council to ensure compliance with the Main Collective Agreement.

In terms of Clause 5 and 6 of the Agreement:

• Employers must complete and submit Annexure A

• Employees must complete and submit Annexure B

Failure to comply with this registration requirement will result in a compliance order being issued by a designated agent of the Council.

2. NON-COMPLIANCE PROCEDURE

If an establishment fails to comply with the compliance order:

• The matter will be set down for arbitration, where the employer will be required to provide reasons for non-compliance.

• An amount of R1,500 will be billed to the employer for the arbitration proceedings.

• Continued non-compliance will result in the arbitration award being submitted to the Commission for Conciliation, Mediation and Arbitration (CCMA) for certification.

Once certified, the award is enforceable by the Sheriff of the Court, who shall:

• Enforce the award as a writ of execution

• Attach movable property within the establishment

• Collect any outstanding amounts due until the employer complies with the Bargaining Council’s regulations

3. STATUTORY DEDUCTIONS AND CONTRIBUTIONS

Compliance includes making the following statutory deductions and contributions:

Employer Contributions:

• EOHCB subscription or Agency Fee (Bargaining Levy)

• Pension Fund

• Sick Pay Fund

• Council Levy

Employee Deductions and Contributions:

• Union Fee or Agency Fee

• Pension Fund

• Sick Pay Fund

• Council Levy

All contributions must be paid over to the Bargaining Council as stipulated in the Main Collective Agreement by the employer.

The employer needs to make sure that the employees are paid the correct salaries and wages as per the salary and wages schedule. Failure to pay the correct salaries and wages, the designated agent will also issue a compliance order so that the employer pays the correct salaries and wages to the employees.

4. CONCLUSION

Employers are urged to ensure their establishments are fully registered and compliant. Non-compliance can result in legal enforcement actions and financial penalties. For further information or assistance with registration, please contact the Bargaining Council office directly or your EOHCB representative for assistance with compliance.