South African fast food outlets and restaurants will now be required to pay December bonuses to their staff as well as wash staff uniforms on a weekly basis as per new rules. The rules will come into effect on Monday 18 January 2021, and employers in these sectors will need to register with the Council for the Fast Food, Restaurant, Catering and Allied Trades before 18 February 2021.
Restaurants were until recently covered by the sectoral determination for the hospitality sector, which had far less tenuous requirements. However, the Department of Employment and Labour extended the main collective agreement of the newly formed Bargaining Council for the Fast Food, Restaurant, Catering and Allied Trades to all employers.
This also includes employers in the hospitality sector who are not part of the bargaining council. Consequently, all restaurants and fast food outlets have a month to register with the council.
All restaurants and fast-food employers are now to pay wages that are above the national minimum wage by at least 7%. This is regardless of the employees’ position. The employers have been given a deadline of 1st May 2021 to abide by this law.
Other expenses that the employers will be required to cover as per the new law invlude: A bargaining council expense levy of R5 per employee, a dispute resolution levy of R3 per employee monthly, a general establishment levy of R25 per month per establishment, funeral benefit of R25 per employee per month, a contribution to the provident fund that is equal to 5% of the employee’s monthly wages and R17.50 weekly to employees who wash their own uniforms.
A December bonus of one week’s wages must be paid to all employees who have been employed for a year. Those who have worked at the establishment more than a year must receive a bonus of two week’s wages.
