Boss Withholding Benefits? Take Legal Action Today.

What to Do When Your Employer Doesn’t Pay the Benefits You’re Entitled To

When you accept a job, your salary isn’t the only thing you’re agreeing to. If your employment contract includes benefits such as pension or provident fund contributions, medical aid contributions, allowances or other agreed benefits, these form part of your overall remuneration package.

If your employer suddenly stops paying these benefits, reduces them without agreement, or deducts money from your salary without paying it over to the relevant institution, you may have legal remedies. South African labour laws are designed to protect employees from unfair treatment.

Your Rights Under South African Law

Section 23 of the Constitution guarantees everyone the right to fair labour practices.

In most cases, an employer cannot simply reduce or remove contractual benefits or change your remuneration without following a lawful process or obtaining your agreement, unless the employment contract or the law allows it.

The Basic Conditions of Employment Act (BCEA), the Labour Relations Act (LRA) and, where applicable, other employment laws provide employees with various ways to resolve disputes and recover money or benefits that are owed.

What Should You Do?

1. Raise the Matter with Your Employer

Before taking formal legal action, report the problem in writing to your employer, Human Resources department or manager.

Keep copies of:

Sometimes payroll mistakes can be corrected quickly once they are brought to the employer’s attention.

2. Contact the Department of Employment and Labour

If the matter isn’t resolved, you can lodge a complaint with the Department of Employment and Labour.

A labour inspector may investigate whether your employer has complied with the Basic Conditions of Employment Act. Where appropriate, an inspector can issue a compliance order requiring the employer to correct any breaches of the law. If necessary, these orders can ultimately be enforced through the Labour Court.

3. Refer the Matter to the CCMA or Bargaining Council

If internal discussions don’t resolve the problem, you may be able to refer a dispute to the Commission for Conciliation, Mediation and Arbitration (CCMA) or the relevant bargaining council.

Depending on the circumstances, this may include:

Unfair Labour Practice

If the dispute concerns the unfair provision, withdrawal or refusal of employment benefits, it may qualify as an unfair labour practice under section 186(2)(a) of the Labour Relations Act.

Monetary Claims

Employees who earn below the BCEA earnings threshold may, in certain circumstances, refer claims for unpaid remuneration and certain contractual amounts directly to the CCMA under section 73A of the Basic Conditions of Employment Act.

4. Court Proceedings

Employees who earn above the BCEA earnings threshold, or whose disputes involve purely contractual claims, may need to enforce their rights through the Labour Court or another court with the appropriate jurisdiction, depending on the nature of the dispute.

Legal advice can help determine the most suitable forum for your particular case.

Don’t Miss the Time Limits

South African labour law places strict time limits on many disputes.

If you’re referring an unfair labour practice dispute to the CCMA or a bargaining council, you generally have 90 days from the date the dispute arose or from when you became aware of it.

If you miss this deadline, you can ask for condonation, but you’ll need to explain why the referral was late and why your case has reasonable prospects of success.

Acting promptly can make a significant difference.

What If Your Employer Deducts Money but Doesn’t Pay It Over?

One of the most serious forms of employer misconduct is deducting money from an employee’s salary but failing to pay it to the organisation that should receive it.

Pension and Provident Funds

If your employer deducts pension or provident fund contributions from your salary but fails to pay them into the fund, this may amount to a breach of section 13A of the Pension Funds Act.

Fund administrators and the Pension Funds Adjudicator have powers to deal with these complaints, and in certain circumstances company directors or other responsible persons may be held personally liable for unpaid contributions.

UIF and PAYE

Employers are also legally required to pay over UIF contributions and employees’ tax (PAYE) that have been deducted from employees’ salaries.

Failure to do so can result in interest, penalties and enforcement action by the South African Revenue Service (SARS), while UIF obligations are administered under the applicable unemployment insurance legislation.

You Don’t Have to Accept Unfair Treatment

Most employers meet their legal obligations, but if yours doesn’t, you have rights and there are legal processes designed to protect you.

Whether your employer has stopped paying agreed benefits, failed to pay money deducted from your salary, or reduced your remuneration without following the proper process, it is important to act quickly, keep good records and seek professional advice where necessary.

Knowing your rights is the first step towards ensuring you receive the remuneration and benefits you’ve earned.

Need legal advice? If you believe your employer has unlawfully withheld your salary or benefits, speak to an experienced labour law attorney as soon as possible. Early legal advice can help you protect your rights and identify the most effective course of action.

Get the Help You Deserve:

Facing unpaid benefits can be stressful. Don’t go through this alone! Contact us at BBP Law Attorneys! Our experienced team can guide you through the CCMA process, explain your rights in detail, and fight to ensure you receive the full compensation you’re entitled to.