The new Bargaining Council (BC) came into effect on 18 January 2021. This Main Agreement will affect most Employers who previously fell under the Hospitality Sectoral Determination. (With some exceptions). This Council now establishes higher minimum wages and benefits and improved working conditions for employees engaged in the industry.

Some noticeable changes are:

• The introduction of a night shift allowance of R1.00 per hour;
• A compulsory late-night travel allowance of R150 per month for those employees who work after 22:30;
• Payment of compulsory bonuses in December for those employees with more than 12 months of consecutive service;
• Employers to provide and maintain uniforms free of charge;
• Specific rules and reduced hourly wages for those employees still in their first probation period;
• If employees are required to maintain their uniform employers are required to pay these employees a “cleaning subsidy” of R17.50 per week;
• Introduction of a 3 week notice period when terminating service for those employees with one years’ service and above;
• Introduction of a provident fund and a funeral benefit for staff compulsory registration with the council and deductions for council levies.

In terms of this Main Agreement, employers must register with the Council within 30 days, running from the 18 of January 2021. Non-compliance may lead to orders for “back pay”. This may have devastating financial implications for employers.
We strongly advise that employers in the industry contact our offices if they need any further information or clarity.