Loadshedding and payment of wages.

LOADSHEDDING 
and
 PAYMENT OF WAGES

Dear employer
 
Loadshedding is wreaking havoc for employers who need to find a way to run operations amid an ever-changing and escalating loadshedding schedule.
 
Although employers generally carry the burden of paying wages, despite loadshedding, this issue has now escalated to a point where it may no longer be feasible. This gives rise to the question of how to manage employees and the payment of their wages when they are not able to perform their duties due to loadshedding.

The basic principle of an employment contract is that, as long as an employee tenders his or her services, he or she must be paid. The employee is complying with his or her contractual obligations by being available to work; the fact that the employer cannot provide work may not be laid at the feet of the employee, and employers will, therefore, be obligated to comply with their contractual payment obligations.

However, employers have recourse: 

1. Some contracts of employment and certain bargaining council agreements, already contain a provision catering for this occurrence and should be consulted for procedural purposes.
2. The contractual terms and conditions of employment of an employee can also be amended to cater for the current situation. This must be done in line with legislative requirements. 

Utilising these mechanisms requires specialised knowledge, as they all come with prescribed requirements and some element of risk

Employers who require assistance in negotiating or implementing any of these measures, click here.

For more information:
NEASA Media Department
media@neasa.co.za