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Our purpose
The old law, which regulates employment and wages in the Agricultural
Sector, has been changed.
Farmers will be required to pay the new prescribed minimum wages as from
1 March 2006.
This document briefly covers some of the most important provisions in the
Sectoral Determination.
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A copy of the Sectoral Determination is available from the Government Printer
or from the Department of Labour. It is also available on the Departmentʼs
website: www.labour.gov.za
What is the purpose of the Sectoral Determination?
It lays down conditions of employment for farm workers such as:
Hours of work
Leave
Particulars of employment
Termination of employment
Prescribes the minimum wage farmers are required to pay.
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Who is included?
It applies to all farm workers in all farming activities in the Republic of South
Africa, excluding the Forestry Sector.
Who is regarded as a farm worker in terms of the Sectoral
Determination?
Farm workers in all farming activities in South Africa
A domestic worker employed in a home on a farm
A security guard employed to guard a farm or other premises where
farming activities are conducted, who is not employed in the private
security industry.
Wages
What does the law say about wages?
The new minimum wages for farm workers will become effective as from
1 March 2006
A farmer must pay a farm worker who works less than 45 hours per month
at least the hourly rate set out in Table 1
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A farm worker will be paid according to the Area in which the farm worker
works, according to Table 1
Wages are prescribed according to two areas, namely Area A and Area B
Municipal boundaries have been used to distinguish between the two
areas
Table 1 list the municipalities grouped as Area A and Area B covers the
rest of South Africa.
Are wages paid according to the number of hours worked per week?
Yes. If a farm worker works less than 45 hours per week the worker should be
paid at least the hourly rate in Table 1, and if the farm worker works 45 hours
per week, at least the monthly rate specified in Table 1 should be paid.
Deductions
Permissible deductions
(a) A farmer may deduct an amount not exceeding 10% of a farm workerʼs
wage for a house:
If there is no electricity where the infrastructure does not exist on a farm
If water is available within 100 meters from the house
The house has a roof that is durable and waterproof
The house has glass windows that can be opened
A flush toilet or pit latrine is available in, or in close proximity, to the house
The house is not less than 30 square meters in size.
(b) A farmer may deduct for loss or damage only in the following instances:
If it was the fault of the farm worker
A fair procedure was followed to give the farm worker a reasonable
opportunity to show why the deductions should not be made
The total amount of the debt is not more than the actual amount of the loss
or damage
The total deductions from the farm workerʼs pay is not more than one
quarter of the farm workerʼs pay in money.
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What deductions are not allowed?
A farmer may not deduct for the grazing of a farm workerʼs cattle or sheep
(livestock).
Other important provisions about deductions
If goods are purchased by the farm worker and it is deducted from the farm
workerʼs wage, the amount deducted should be the same as the proof of
purchase.
Conditions of employment
How many ordinary hours may a farm worker work per week?
Farm workers should not work more than 45 ordinary hours per week.
How many overtime hours may a farm worker work per week?
Farm workers may work 15 hours overtime per week, but not more than 12
hours per day including overtime.
Overtime is payable when a farm worker works more than the prescribed
hours per week (i.e. 45 hours), unless the written particulars shortens those
hours, then overtime should be paid if those shortened hours are exceeded.
Example:
How to calculate a daily wage including overtime.
A farm worker in Area A works 5 days per week and 9 hours per day. On a
specific day he/she works 12 hours. What is the wage for this day?
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A farmer must pay a farm worker who works on a Sunday in accordance with
Table 4.
Public holidays
A farmer may not call for a farm worker to work on a public holiday, except if
the farm worker agrees to work.
If a public holiday falls on a day that farm workers would normally work a
farmer should pay as follows:
A farm worker that does not work on this day, his/her normal wage
A farm worker that works on this day should be paid double the daily
wage.
Leave
What type of leave is a farm worker entitled to?
Four types of leave, namely: annual, sick, family responsibility and maternity
leave.
What are the conditions regarding annual leave?
Farm workers are entitled to 3 weeks paid leave per annual leave cycle.
Should a public holiday fall within the leave cycle an additional dayʼs paid
leave must be granted.
What are the conditions regarding sick leave?
The sick leave cycle is 36 months and is based on the number of days worked
over a six week period.
Example:
How to calculate sick leave:
A farm worker works 5 days per week.
Sick leave days per cycle are 5 x 6 (number of week) = 30 days paid sick leave
days per 36 months of employment.
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What is family responsibility leave?
It is leave granted for specific family related matters.
Three days leave on full pay are granted during an annual leave cycle
and can be used for:
The birth of a child of the farm worker
A sick child of the farm worker
When a spouse, parent, grandparent, child, grandchild, brother or sister of
the farm worker dies.
What are the key issues related to maternity leave?
Maternity leave is for four months and starts four weeks before the
expected date of birth.
A farm worker may only resume work, six weeks after the birth of a child.
Termination of employment
How should termination of employment be conducted?
Either party may terminate the employment relationship. If a farm worker
worked for less than six months for a farmer, one weekʼs notice is required.
Two weeksʼ notice is required if a farm worker worked for more than 6 months
but less than a year for a farmer and four weeksʼ notice is required if a farm
worker worked for more than a year for a farmer.
Important
The lawfulness or fairness of dismissals can be challenged by farm
workers in terms of Chapter VIII of the Labour Relations Act, 1995,
or any other law
The termination of employment clause, payment instead of notice clause
and accommodation, livestock and crops on termination clause does not
affect the rights of farm workers which they became entitled to in terms of
any land reform process.
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When should severance pay be paid?
Severance pay is paid where there are operational reasons for terminating the
employment of a farm worker.
How much severance pay should be paid?
If a farm workerʼs employment ends, based on operational requirements,
he/she should be paid: one weekʼs remuneration for every completed year of
service.
Certificate of service
The farmer must give a farm worker a certificate of service on ending the
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employment relationship.
The following should be included on the certificate
Farm workerʼs full name
Name and address of the farmer
Date of commencement and date of termination of employment
Title of the job or brief description of the work for which the farm worker
was employed at the date of termination
Any relevant training received by the farm worker
Pay at date of termination
If the farm worker requests, the reason for termination of employment.
Records
What records must be kept?
A farmer will be required to give the farm worker a pay slip and written
particulars of employment.
Payslip
Every farm worker must get a pay slip.
Copies of the slips must be kept for three years as it will serve as proof that
the farmer has complied with all the monetary provisions of the law.
Providing a farm worker with written particulars of employment will help when
any dispute arises.
The farmer must give a farm worker written particulars of employment. The
farmer must ensure that the farm worker understands the contents of what is
required.
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Rate of pay for overtime work
Any other cash payments that the farm worker is entitled to
Any food or accommodation payment that the farm worker is entitled to
and the value of the food or accommodation calculated in accordance with
clause (8)
Any other payment in kind received from the farmer
How frequently wages will be paid
Any deductions to be made from the farm workerʼs wages
Leave to which the farm worker is entitled to
Period of notice required to terminate employment, or if employment
is for a specific period, the date when employment is to terminate.
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