Reduced Work Time and the Unemployment Insurance Fund

We did touch on how Short-Time or Reduced Working Hours (hereinafter referred to as reduced work time) can leave employees desperate and overwhelmed. To the extent that they take matters into their own hands and even embark on illegal/unprotected strike action. Few knew of the existence or possibility of reduced work time. Today it is part and parcel of the workers industry.

The term seems to be self-explanatory. Your work time, whether 8 hours a day or 9 hours a day; 5 days a week or 6 days a week, is made less. The biggest negative impact is on your remuneration, for the simple reason that your weekly wage or monthly salary is calculated on an hourly rate. Any hour less than the norm, equals less money in your pocket.

Reduced Work Time and Consultation

Reducing work time cannot come about by default. There are specific requirements and processes that need to be followed. Empower yourself with these processes and limitations provided by legislation.

Since 1 September 2019 to 28 March 2021, the period where the MIBCO Main Collective Agreement lapsed, an employer had to consult with you prior implementing reduced work time. From 29 March 2021 when the newly signed MIBCO Main Collective Agreement became law, the ‘Short-Time’ clause has been re-enacted. That is, the requirements prior and during reduced work time in the retail motor industry.

Bear in mind that the ‘Short-Time’ provision has been consulted on and negotiated in advance and therefor binding on all employees in the retail motor industry who earn below the threshold, R211 596.30 per annum (excluding commission).

Consultation is crucial as the proposed reduced work time changes your terms and conditions of employment. Remember, in the retail motor industry your relationship with your employer is regulated by the MIBCO Main Collective Agreement as well as your contract of employment (whether verbal or in writing). Your terms and conditions cannot by default be changed unilaterally outside these two binding sources.  

In a dispute between Janine Van Wyk v JNB Ceramica CC [2021] 2 BALR 218 (CCMA), JNB argued that Van Wyk ‘resigned’ and her failure to respond to JNB’s proposal namely: ‘Are you prepared to continue working 2 days per week on a reduced salary for the immediate short term until things improve’, repudiated her contract of employment. The Arbitrator did not agree and held that ‘[A] repudiation of a proposed amendment cannot be equated to repudiation of the contract.’ As a result, Van Wyk’s termination was ruled a dismissal.

This case again highlight the importance of consultation/negotiation, in the absence of a binding collective agreement on terms and conditions of your employment. Failure to accept proposed changes or to reach an agreement does not by default bring your contract of employment to an end.

The enactment of the MIBCO Main Collective Agreement’s provision on ‘Short-Time’ is not necessarily leaving you without recourse. Especially if you earn above the threshold, then there must be consultation/negotiation on any proposed reduced work time. Let MISA be your voice.

Reduced Work Time and Financial Relieve

The negative financial impact as a result of reduced work time can be devastating. There is, however, financial recourse and relief. The Department of Employment and Labour, in terms of the Unemployment Insurance Act 63 of 2001 (UIA), offers benefits for employees who lost income as a result of reduced work time or as a result of work stoppage. Clause 12(1B) provides that ‘A contributor employed in any sector who loses his or her income due to reduced working time, despite still being employed, is entitled to benefits if the contributor’s total income falls below the benefit level that the contributor would have received if he or she had become wholly unemployed, subject to that contributor having enough credits.’

Requirements to qualify for ‘Reduced Work Time’ benefits in terms of the above are:

 Claiming Reduced Work Time Benefits

In general, you as employee had to submit a claim for reduced work time with your employer’s assistance. The Fund did, however, improve their system to enable employers to submit bulk applications on behalf of you as employees.

The Department of Employment and Labour has all the necessary claim documents on their website. These claim documents can be accessed by following this link: http://www.labour.gov.za/reduced-work-time-benefit

Some relief in terms of the processing of these claims is found in the words of Marsha Bronkhorst, Acting UIF Commissioner: “We expect the processing of these claims to be efficient as we use a tried and tested system. A huge relief for us is that monies will be paid directly into the employee’s account and payments will be paid to legitimate people as calculations of benefits will be based on, among others, credit days accumulated in the last four years which greatly reduces opportunities for fraud.”

Conclusion

In a very difficult and economically challenging period; don’t be disheartened. MISA will be your voice in any reduced work time discussions; make the call! Should you be affected by the reduced work time implemented by your employer, please follow the links and claim from the Unemployment Insurance Fund.

Remember, MISA is just a phone call away.

Kindly utilise the following e-mail addresses and links for assistance during this time: 

Legal/Labour-related enquiries                             Legal@ms.org.za

Legal reception                                                        011 476 3920 

MISA benefit claim-related enquiries                  Claims@misa.org.za   

Any other enquiries                                                Info@ms.org.za  

Website                                                                    www.misa.org.za    

Mobile App                                                              https://onelink.to/w9a7ku