Know the detail on minimum wages; rest periods

November 2024

LOUISE KUNZ, ASSISTANT EDITOR

THE TERMS AND CONDITIONS OF EMPLOYMENT IN THE AGRICULTURAL SECTOR IS REGULATED BY THE SECTORAL DETERMINATION FOR AGRICULTURE (SD13). IT PROVIDES FOR MINIMUM WAGES AND RATES FOR FARM WORKERS. ALL EMPLOYERS OF FARM WORKERS MUST COMPLY AND IT MUST BE INCLUDED IN THEIR CONTRACTS. THESE WAGES AND RATES MUST ALSO BE ESCALATED ANNUALLY IN ACCORDANCE WITH THE RELEVANT DETERMINATION.

Farm management is to plan, organise, implement and control all actions within each production area of the farming business (known as management tasks) to achieve the dominant objective of the business, to make a profit. 

The production areas of the business are production, marketing, finance, purchase, administrative, employee, external relations, asset and general management. The two topics to be discussed – minimum wages and rest periods – both concern employee management.

MINIMUM WAGES
Ten years ago, the government decided to implement a system of minimum wages to be paid to farm employees – a system that was and still is met with criticism. It was recently announced that from 1 March 2024, the minimum wage for the next year is R27,58 per hour. The only way to cope with this aspect is to manage it properly.

To apply proper employee management, you must have a management policy document. This document must contain a diagram showing all the positions in your business. Examine the diagram regularly to decide whether each position is still necessary.

This major change in the wage structure has also put a strong emphasis on the appointment of suitable employees. All positions in your business must be supported by a proper job description to be used when appointing new employees.

Productivity

• Employees should work at an acceptable standard and tempo. If they do not, use the disciplinary code and process. Don’t struggle with employees who are not productive.
• Consider the productivity of your workforce on a regular basis, as productivity measures the work done by your employees compared to their salaries and working time.
• When considering productivity, there are two resources involved, namely people (employees) as well as equipment and tools. Examine your tools and equipment. It is your responsibility as employer to provide suitable and well-maintained tools and equipment. You cannot expect an employee to do a job fast and to your required standard if suitable and well-maintained tools and equipment are not provided.
• Address your human resources. Do your employees have the necessary skills and expertise to do the required job? Train your employees properly to increase their productivity and therefore counter employee costs. Communicate with your employees on ideas to get a job done.

REST PERIODS
The Sectoral Determination for Agriculture (SD13) also determines that rest periods are applicable to a farming business – when work is stopped to relax or recover strength.

• The first rest period as determined by the SD13 is that an employee must be allowed a rest period of one hour after five hours of work. This period may be reduced to 30 minutes if agreed on by the employer and the employee. When referring to working hours, lunch and tea breaks are excluded.
• An employee must also be allowed a rest period of at least twelve hours between working shifts.
• Concerning overtime, an employee may not work more than twelve hours per day (including overtime) – and not more than 15 hours overtime per week. Remember that overtime can only be allowed on mutual agreement. An employee may not be forced to work overtime.

Sick leave can also be considered as a rest period. Normally an employer may approve two days sick leave without a notice by a legal medical practitioner. For longer periods proper legal notices should be required by the employer.

Annual leave is a longer rest period and must be a minimum of three weeks per year, which should be taken during the specific year or at the latest within six months after the end of the year.

TO SUMMARISE
These two aspects (minimum wages and rest periods) could result in employees not being motivated enough to deliver proper work, if not applied or managed properly. This will have a negative influence on the profit of a business. 

Apply the labour laws and increase productivity. Train your employees, communicate with them and use functional tools and equipment to counter the effect of the new minimum wages. Thus, keep your employees motivated – treat them fairly and with respect. 

Publication: November 2024

Section: Pula/Imvula