Outline of key aspects raised regarding FEDHASA Cape’s submission of a formal proposal for the review process of the Hospitality Sectoral Determination 14 (SD14) to the Department of Labour:

 FEDHASA Cape has submitted a formal proposal for the review process of the Hospitality Sectoral Determination 14 (SD14) to the Department of Labour.     The SD14 deals with issues such as minimum wages and conditions of employment and is under review for the three year period starting in 2010 and ending in 2012.    


FEDHASA Cape has, among others things, suggested that the minimum wage annual increase for the next three years should be based on the Consumer Price Index (CPI).    The current wage (period 1 July 2009 until 30 June 2010) for a company with 10 or less employees is R9.45 per hour.  The current wage (same period) for a company with more than 10 employees is R10.53 per hour.   An increase in the current wage is due on 1 July 2010.    This proposed wage increase is only applicable to minimum wages and not an across the board increase for all employees.  Unions tend to tell employers the legislated increase is across the board when in fact it is only on the minimum wage.   


FEDHASA Cape has also suggested that the renegotiation clause 13(3) and 13(4) regarding the requirement to renegotiate an agreement to average hours of work after one year of employment be removed from the SD14.  Employers often agree to averaging of hours for work with employees.  For example:  During busy times, the employee will be able to work a 50-hour week, but in quieter times less.  The average of the two over two weeks amounts to 45 hours and therefore to this clause after one year of employment was shown to be problematic in an industry that is dependent on seasonal peaks.   FEDHASA Cape has made recommendations that the Sunday Overtime clause be reviewed.  In the retail sector, for instance, employers have an option not to pay for overtime on Sundays by entering into a ‘forty ordinary hours per week’ contract with their employees.  However, currently the Sectoral Determination for the hospitality industry does not include this option and we would like to see such an option included in SD14.

To keep abreast of legislative developments in this regard, click here, scroll down to the “Dept. of Labour” & further down to “Sectoral Determination”.

Email: sonja@palmconsultants.co.za

Sonja: +27 (0)82 823 4511

Danie: +27 (0)82 961 1638


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