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A recent Labour Court judgment has provided important clarity on this question.
In Bumbana Mining (Pty) Ltd v SALU and Others (JR701/23) [2026] ZALCJHB 72 the Labour Court considered whether an employer was obliged to continue paying an employee’s housing and medical allowances while she was on unpaid maternity leave.
The employee, Ms Msomi, was employed by a mining company whose policy provided for four months of unpaid maternity leave. Her employment contract expressly stated that no remuneration would be payable during such leave. In addition to her hourly wage, her contract entitled her to a housing allowance of R1000.00 per month and a medical allowance of R250.00 per month.
When Ms Msomi took her approved maternity leave from November 2022 to March 2023, her employer withheld both her wages and her allowances. She referred the matter to the CCMA and argued that while she was not entitled to receiving her wages, the withholding of her allowances amounted to an unfair labour practice by the company.
The CCMA
The CCMA Commissioner found in the employee’s favour by drawing a distinction between wages and benefits such as allowances and ordered the employer to pay the withheld allowances.
The employer, not satisfied with the outcome, took the matter on review to the Labour Court.
What the Labour Court Found on Review
The Labour Court set aside the CCMA award and held that the distinction between wages and benefits were artificial and legally unsustainable.
The definition of “remuneration” under our labour legislation is intentionally broad which encompasses any payment in money or in kind made to an employee in return for their work, this includes allowances. Benefits such as housing and medical allowances are provided as part of the overall package in exchange for services rendered, in the same way that wages are. There is no principled basis for treating them differently.
Accordingly, if an employee is on unpaid leave, she is not entitled to any component of her remuneration during that period, including allowances.
What This Means for Employers
This judgment confirms that where an employment contract or company policy provides for unpaid maternity leave and the contract clearly states that no remuneration is payable during such leave, employers are not obliged to continue paying allowances alongside wages. Both form part of remuneration and both may lawfully be withheld during unpaid leave.
That said, employers should ensure that:
- Their employment contracts contain a clear and unambiguous remuneration clause that itemises all components (wages, housing allowances, medical allowances and any other extras); and
- Their maternity leave policy expressly states that leave is unpaid, and that no remuneration in any form is payable during the leave period.
Properly drafted contracts and policies remain your first line of defence. If you are unsure whether your documentation adequately protects your business in situations like these, contact your local SEESA Labour office for assistance.
IVAN HUSSELMAN | SENIOR LEGAL ADVISOR | LABOUR
Do your contracts and policies clearly protect your business? Avoid uncertainty around unpaid leave, remuneration and employee benefits. Contact SEESA Labour specialists for practical guidance.