GIVING BACK THAT STRENGTHENS RATHER THAN DAMAGES RELATIONSHIPS
Written by Laurence Moeti
A thank-you that backfired
Consider an illustrative example. Nomsa owns a busy hairdressing establishment with six employees. After a strong December, she wants to say thank you. She quietly gives two of her favourite Hairdressers an extra R500 each and says nothing to the others.
Within a day, the whole team knows. The senior Hairdresser who trained two of the juniors feels overlooked. The receptionist who stayed late every Saturday feels invisible. By February, one employee has resigned, and another has asked for a meeting about “how rewards are decided”.
Nomsa meant well. Yet her gesture damaged trust because it looked arbitrary. In an industry where the team is central to the service delivered to clients, that matters. This article looks at how giving back to your employees can strengthen relationships, and where the law expects you to be careful.
What “giving back” means in an establishment
Giving back is more than a year-end gift. In an establishment in the Hairdressing, Cosmetology, Beauty and Skincare Industry, it includes:
bonuses, commission and incentive schemes;
tips and how they are shared;
paid training, product education and competition entries;
flexibility, such as swapping shifts around family needs; and
honest feedback and public acknowledgement of good work.
Each of these tells your team what you value. Done fairly and consistently, they can build loyalty. Done carelessly, they can build resentment.
Where goodwill meets the law
Giving back does not replace lawful pay
Rewards are an extra. They never make up for pay that is owed. Since 1 March 2026, the national minimum wage has been R30.23 for every ordinary hour worked (National Minimum Wage Act 9 of 2018; Government Gazette 54075 of 3 February 2026).
Employers in the Hairdressing, Cosmetology, Beauty and Skincare Industry must also take account of the National Bargaining Council’s Main Collective Agreement. The agreement, as amended and extended to non-parties, may prescribe minimum wages and other employment conditions that apply to particular employees and establishments. The applicable provisions and wage schedules should be checked before an employer designs an incentive scheme. The national minimum wage does not replace a higher applicable bargaining council rate.
Discretionary rewards must still be fair
You may not be obliged to pay a bonus. Even so, where a bonus or other benefit is provided under an existing policy, practice or arrangement, the law expects the employer to exercise any discretion fairly. Section 186(2)(a) of the Labour Relations Act 66 of 1995 (LRA) identifies unfair conduct by an employer relating to the provision of benefits as an unfair labour practice.
In Apollo Tyres South Africa (Pty) Ltd v CCMA and Others (2013) 34 ILJ 1120 (LAC), the Labour Appeal Court held that a benefit can include an advantage or privilege granted under a policy or practice that is subject to the employer’s discretion. The case concerned an employer’s handling of an early retirement scheme. The Court confirmed that an employer’s discretion in relation to a benefit is not unlimited and must be exercised fairly.
The lesson is simple: if you provide employees with rewards or benefits, be able to explain how and why decisions are made. A discretionary reward does not automatically create an entitlement to a new benefit, but an employer’s conduct in administering an existing benefit may be scrutinised for fairness.
An employee who believes that an employer has acted unfairly in relation to a benefit may refer an unfair labour practice dispute to the CCMA or the relevant bargaining council, where it has jurisdiction. In terms of section 191 of the LRA, the referral must generally be made within 90 days of the act or omission, or the date on which the employee became aware of it.
Do not take back what you have given
Trust is also damaged when a reward later becomes a deduction. Section 34 of the Basic Conditions of Employment Act 75 of 1997 (BCEA) sets out when an employer may make deductions from an employee’s remuneration. An employer may not make a deduction unless the employee agrees in writing to a deduction in respect of a specified debt, or the deduction is required or permitted by law, a collective agreement, a court order or an arbitration award.
Where a deduction is intended to recover loss or damage, additional requirements apply. The loss or damage must have occurred in the course of employment and been due to the employee’s fault. The employer must follow a fair procedure and give the employee a reasonable opportunity to explain why the deduction should not be made. The amount recovered may not exceed the actual loss or damage, and deductions under this provision may not exceed one-quarter of the employee’s remuneration in money.
Practical examples that require careful consideration include:
recovering the cost of a training course when an employee resigns;
deducting for breakages, stock shortages or missed appointments; and
“balancing” a bonus against an advance.
In each case, check section 34 first. If an employer intends to recover training costs, the arrangement should be clearly recorded in a written agreement that specifies the debt and the circumstances in which repayment may be required. An employer should not assume that training costs can automatically be deducted from an employee’s final pay.
Treat people equally and without bias
Section 6 of the Employment Equity Act 55 of 1998 prohibits unfair discrimination in any employment policy or practice. This includes how rewards and opportunities are allocated. Race, gender, pregnancy, religion, age, disability and the other listed grounds must not be used as a basis for unfairly deciding who is recognised, who gets access to opportunities or who is sent for training.
Honest feedback is also a way of giving back
Recognition feels hollow if an employee is never told where they need to improve. The Code of Good Practice: Dismissal, which came into effect on 4 September 2025, repealed and replaced Schedule 8 of the LRA. It provides guidance on fair dismissal practices, including how employers should address poor work performance.
For poor performance, employees should generally be made aware of the required performance standard, given appropriate guidance or evaluation, and afforded a fair opportunity to improve before dismissal is considered. The Code recognises that the circumstances of smaller employers may differ from those of larger organisations, and that the procedure followed should be appropriate to the circumstances. However, fairness and consistency remain important.
Regular, kind and specific feedback is therefore good management. It helps employees understand what is expected of them and allows small problems to be addressed before they become bigger concerns.
Putting it into practice
Nomsa could have avoided her February problem with a few simple steps. Establishment owners can do the same:
Write the rules down. Set out how bonuses, incentives and recognition are decided in a short policy every employee can read.
Use clear criteria. Base rewards on measurable things, such as attendance, client feedback, retail sales or teamwork, rather than personal preference.
Be open about tips. Agree in writing whether tips stay with the Hairdresser or other employee who earned them or are pooled, and apply the arrangement consistently.
Agree on training costs upfront. If a repayment condition applies, record it in a written agreement that clearly sets out the terms before the training begins.
Consult before changing. If you must reduce or end a long-standing benefit, explain the reason and consult the team where appropriate before making changes.
Keep records. Note why each reward was given. If a question arises, you can answer it calmly and with facts.
Say thank you often. Recognition in a team meeting costs nothing and is remembered long after a once-off gift.
Giving back works when employees can see that it is fair, consistent and honest. A modest reward that is explained and applied fairly will do more for your team than a generous gift that leaves people guessing.
Treat the law as a framework for fairness rather than an obstacle to generosity. When your team trusts how decisions are made, they are far more likely to stay, to grow, and to look after your clients. That is the real return on giving back.
