May an employer deduct monies from its employee for negligence?

BY TRACEY MOUTON - DIRECTOR: HUMAN RESOURCES & LABOUR LAW DEPARTMENT AT GOLDBERG & DE VILLIERS INCORPORATED - APRIL 25, 2016

In terms of Section 34 of the Basic Conditions of Employment Act (BCEA), an employee may make a deduction should such deduction need to be made to reimburse an employee for loss or damages. 

For such a deduction to be made, the following criteria are to be met:

1.  The loss or damage should have occurred in the course of   employment and was due to the fault of the employee;

2.  The employer followed fair procedure and gave the employee   a reasonable opportunity to show why the deductions should   not be made;

3.  The total amount of the “debt” is not to exceed the actual   amount of the loss or damage; and

4.  The total deductions from the employee’s remuneration in   terms of the above may not exceed one quarter of the   employee’s remuneration in money.

It is very important when a chairperson is considering charges of negligence that he/she applies his/her mind in relation to the reimbursement by the employee of the loss suffered.

For further information in relation to the above, please

Contact Tracey Mouton on 041 501 9832, or email [email protected]