SA Labour Law Glossary

Key terms and acronyms explained in plain language.

13th Cheque

A year-end bonus, traditionally equal to one month's salary, paid in December. Not legally required in South Africa but widely customary. Also known as a "Christmas bonus".

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Agri Add-On

An optional feature pack for SA Wages Pro that adds support for farm workers, seasonal teams, and piece-rate operations. Includes harvest logging, rain-day calculations, seasonal rehire, farm perks tracking, and a separate agri worker pool of up to 100 workers.

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Agri Worker Pool

A separate worker capacity included with the Agri Add-On, independent of the standard plan pool. Farm and seasonal workers are counted in the agri pool. Domestic and business workers are counted in the standard pool.

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Arbitration

The second stage of CCMA dispute resolution where a commissioner hears evidence from both parties and makes a binding decision (award). This happens if conciliation fails.

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Basic Conditions of Employment Act

BCEA

The primary legislation governing employment conditions in South Africa, including working hours, leave, pay, and termination. Applies to all employees except members of the defence force, intelligence agency, and unpaid volunteers.

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Cancellation Rules

When a subscription is cancelled, the user retains full access until the end of the current paid billing period. After that, the account enters read-only mode for the data retention window (6 months). Cancelling the Agri Add-On does not cancel the base plan.

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Casual Worker

An employee who works on an irregular basis and is not obligated to accept work when offered. After working for more than 24 hours in a month for the same employer, the relationship may be deemed regular employment.

Certificate of Service

A document issued by the employer confirming the employee's period of employment, job title, and reason for leaving. Required under Section 42 of the BCEA.

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Commission for Conciliation, Mediation and Arbitration

CCMA

An independent body that resolves labour disputes in South Africa through conciliation and arbitration. Employees can refer disputes about unfair dismissal, unfair labour practices, and other issues.

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Compensation for Occupational Injuries and Diseases Act

COIDA

Legislation requiring employers to register with the Compensation Fund and contribute towards compensation for employees who are injured or become ill at work.

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Conciliation

The first stage of a CCMA dispute resolution process where a commissioner tries to help both parties reach a settlement. About 70% of cases are resolved at this stage.

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Data Retention

After a subscription is cancelled or expires, user data is retained for 6 months in read-only mode. This allows the user to view records and export data. After the retention period, personal data is anonymised in accordance with POPIA.

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Domestic Worker

An employee who works in a private household performing tasks such as cleaning, cooking, gardening, driving, or childcare. Covered by Sectoral Determination 7 with specific minimum wage rates.

Farm Perks

Benefits in kind provided to farm workers, such as housing, meals, transport, PPE, or tools. Under SD13, the total value of deductions for perks may not exceed 37.5% of the worker's wage, with limits per category (housing 10%, meals 20%, transport 7.5%).

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Farm Worker

SD13

An employee who works on a farm performing agricultural tasks such as planting, harvesting, livestock care, or farm maintenance. Covered by Sectoral Determination 13 with specific minimum wage rates and employment conditions.

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Grace Period

A 48-hour window after a payment failure during which the account remains in read-only mode. The user can view and export data but cannot create or edit records. If payment is resolved, full access is restored.

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Gross Pay

The total earnings before any deductions. Includes basic pay, overtime, bonuses, and allowances.

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Labour Relations Act

LRA

The legislation governing the relationship between employers, employees, and trade unions. It establishes the CCMA and sets rules for fair dismissal, strikes, and collective bargaining.

Minimum Wage Top-Up (SD13)

When a piece-rate worker's daily earnings from output fall below the applicable SD13 minimum daily wage, the employer must pay the difference as a top-up. SA Wages Pro calculates this automatically.

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Net Pay

The amount the employee actually receives after all deductions (UIF, loans, etc.) are subtracted from gross pay. Also known as "take-home pay".

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Occupational Health and Safety

OHS

Employers must provide a safe working environment under the Occupational Health and Safety Act. This includes identifying hazards, providing safety equipment, and maintaining safe premises.

Pay As You Earn

PAYE

Income tax deducted by the employer from the employee's salary before payment. Most domestic workers and low-wage employees fall below the tax threshold and are not subject to PAYE.

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Piece-Rate Pay

A method of payment where the worker is paid per unit of output (e.g., per kilogram harvested, per crate picked) rather than per hour or per day. SD13 requires that piece-rate workers still earn at least the minimum wage.

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Progressive Discipline

The principle that disciplinary action should escalate gradually — from verbal warning to written warning to final warning to dismissal. Required by the CCMA for fair dismissal.

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Protection of Personal Information Act

POPIA

South Africa's data protection law, similar to the EU's GDPR. Regulates how personal information is collected, processed, stored, and shared. Employers must comply when handling employee data.

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Rain-Day Rule (BCEA 4-Hour Rule)

Under the BCEA, if an employee reports for work and is sent home due to rain or other work stoppage within the first 4 hours, they are entitled to at least 4 hours of pay. SA Wages Pro applies this rule automatically for farm workers.

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Read-Only Mode

A restricted access state where the user can view and export existing data but cannot create, edit, or delete records. Applies during the grace period, after subscription cancellation, and during the data retention window.

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Retrenchment

Dismissal due to operational requirements (economic, technological, or structural reasons). Also known as a "redundancy". Requires a specific process including consultation with affected employees.

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Return of Earnings

ROE

An annual report that employers must submit to the Compensation Fund by 31 March, declaring total wages paid to employees in the previous year. Used to calculate COIDA assessment amounts.

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Seasonal Worker

An employee hired for a defined period to perform work tied to a particular season, such as harvest or planting. Seasonal workers are entitled to pro-rata leave and UIF contributions. In SA Wages Pro, seasonal workers are managed in the agri worker pool.

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Sectoral Determination

Regulations issued by the Minister of Employment and Labour setting minimum wages and conditions for specific sectors (e.g., domestic workers, farm workers, hospitality). SA Wages Pro tracks the applicable sectoral determination for each employee type.

Skills Development Levy

SDL

A levy of 1% of total payroll paid by employers to fund skills development programmes. Employers with an annual payroll below R500,000 are exempt.

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South African Revenue Service

SARS

The government agency responsible for collecting taxes. Employers may need to register with SARS for PAYE and SDL if employee earnings exceed the applicable thresholds.

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Subscription Status

The current state of a user's subscription. Possible statuses include active, past due, grace period, paused, cancelled, trial, and trial expired.

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uFiling

The online system (www.ufiling.co.za) used to declare and pay UIF contributions to the Department of Labour. Employers can register, submit declarations, and make payments online.

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Unemployment Insurance Fund

UIF

A fund that provides short-term financial relief to workers who lose their jobs, become ill, or go on maternity leave. Both employer and employee contribute 1% of gross pay each month.

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Unfair Dismissal

A dismissal that is either substantively unfair (no valid reason) or procedurally unfair (the correct process was not followed). Employees can refer unfair dismissal disputes to the CCMA.

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