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The NMW exemption period is limited to 12 months-Department of Labour

by Lloyd Ramutloa last modified 2018-04-11 09:54

10 April 2018

The National Minimum Wage (NMW) exemptions will be limited to a maximum period of 12 months, Kekulu Padi: Assistant Director: Employment Standards, told the employers and employer organisations briefing session today, Tuesday 10, March 2018 at the Department of Labour’s Labour Centre in Port Elizabeth.

“The exemption system will be linked to the Unemployment Insurance fund, Compensation Fund, Department of Home Affairs and the South African Revenue Services. If granted, the  exemption will be from the date of application and the period will be limited to a maximum of 12 months.” Padi said.

Padi said the advantage with the Department’s NMW exemption system is that it provides results of the application on the spot and there is no waiting period. She said the system will also provide reasons for the refusal and/or audit referral.

Before granting exemptions, the system will subject employers to an affordability analysis, focusing on liquidity status, profitability and solvency position. The system will not grant exemptions for applications that require immunity above the ten percent (10%) threshold of the national minimum wage. In addition, the system will provide for financial audit triggers as well as random audits. The financial audit triggers come in when information recorded into the system mismatch and random audits are done on randomly selected applicants. This will help determine as to whether the granted exemption is still relevant or needs to be withdrawn.

The system will require the employer’s particulars which will include full name of the employer, UIF reference, COIDA number, SARS number, company registration number, nature of business conducted, bargaining council details, address, personal and contact details.

The next employer  briefing sessions will be held in Mpumalanga, one in Nelspruit at Promenade Hotel, c/o Samora Machel Drive and Hershall Street on March 12 and another one on March 13 at Piet Retief.

More briefing sessions are lined up for Limpopo (Tzaneen, March 16 and Polokwane, March 17) and the Free State ( Bloemfontein, March 19 and Bethlehem, March 20).

 

The sessions start at 10am and end at 1pm. –ENDS-

Issued by:

 

Teboho Thejane

Departmental Spokesperson

082-697-0694


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