Bargaining Council: Collective Agreement Extension and Important Info on Pension Fund Premiums


Know your industry and keep informed with the Council’s assistance.

The Bargaining Council provides a forum of mutual respect and understanding in which discussions and negotiations can take place, and collective agreements can be formulated, between the representative bodies of UASA THE UNION (representing employees) and the EOHCB (Employers’ Organisation for Hairdressing, Cosmetology and Beauty), representing employers.

EXTENSION OF PERIOD OF OPERATION OF THE MAIN COLLECTIVE AGREEMENT

The operation of the Main Collective Agreement of the National Bargaining Council for Hairdressing, Cosmetology, Beauty, and Skincare Industry has been extended for the period to 30 June 2023 (Notice No. R2141 in Government Gazette No. 46517 dated 10 June 2022).

PAYMENT OF PREMIUMS WHILE ON UNPAID LEAVE OR TEMPORARY ABSENCE:

Hairdressing Beauty and Skincare Industry Pension Fund

The HBSI Front Office has issued a letter stressing the importance of continued payment of premiums during unpaid leave for whatever reason, including maternity leave or impending disability.

We had a couple of cases where the employee`s sick leave and normal leave were exhausted, put on unpaid leave and passed-away before the impending disability claim was submitted. We need to highlight that the principal of “no premium no cover” applies to all group life schemes and that cover ceases on date of last contribution received, irrespective of an impending claim or not. The insurer/s came back confirming that if a member does not appear on a membership list, no claim will be paid on date of assessment and applies to all claims, i.e. Death, Disability, Critical Illness and Funeral.


This also applies in cases where members are Maternity Leave for a period of time. These employees needs to be flagged as “Temporary Absence” on the monthly schedules submitted to the Bargaining Council.

It is therefore crucial for Employers to ensure that premiums continue whilst on unpaid leave for whatever reason such as Maternity Leave or impending Disability for example, so that cover can continue until the employee returns to work or the assessment of the impending claim has been finalised. During this time of temporary absence, only Employer contributions are payable and calculated as follows:


These amounts need to be paid to the Bargaining Council whilst the person is on Maternity Leave or Impending Disability.

NB: this percentage can change, so confirm before deducting.

Please see attached letter.

Contributions – Maternity and Disability

ALERT TO EMPLOYERS AND RETIREMENT FUNDS FROM THE FINANCIAL SECTOR CONDUCT AUTHORITY

The Financial Sector Conduct Authority has issued a communication (Communication 17 of 2022) to alert Employers and Retirement Funds concerning Arrear Contributions.

This communication is meant to alert retirement funds and employers regarding arrear contributions by retirement funds and employers. The Financial Sector Conduct Authority (“the Authority”) intends to publish the names of those retirement funds and employers who are in arrears.

Arrear contributions arise when employers:

• deduct retirement contributions from employees’ salaries and do not transmit this money into the bank account of a retirement fund, or

• fail to transmit employer contributions, in terms of the retirement funds’ (in which they participate) rules, into the fund’s bank account.

Arrear contributions do not arise in instances where the fund and employer have registered and applied rules which enable the suspension of contribution payments for a period.

Important Notes:

• In terms of Section 13A of the Pension Funds Act, 1956 (Act No. 24 of 1956) (“PFA”), funds have 7 days after the expiration of the period in respect of which contributions are due, to pay the contributions over to the funds.

• Section 37(1) of the PFA makes the contravention of section 13A (non-payment of contributions) a criminal offence, with consequences of potential personal liability for the directors.

• Our preliminary statistics indicate that municipalities and private sector companies have approximately R1 billion and R6 billion arrear contributions, respectively. This compromises good outcomes for members of funds who would have to retire short of their full retirement benefits.

Intention to publish of names of retirement funds and employers with arrear contributions

• Retirement funds and employers are hereby formally alerted to an imminent publication of the names of employers and funds with arrear contributions. The Authority is currently compiling the list and checking the accuracy of the value of arrear contributions.

• Retirement funds must immediately share this communication with the employers.

Enquiries

For further information regarding this Communication please contact the Authority by emailing Ms. Corlia Buitendag, at cornelia.buitendag@fsca.co.za

Please take note of the contents of the attached communication.

FSA Communication 17 of 2022

Announcement – KZN

Appointment of Designated Agent: KZN

The Council is pleased to announce that Ms Niksha Nilchand has been appointed as a Designated Agent in our KZN Division and will be working out of our Durban Office.


If you need more help, please don’t hesitate to contact your local area agent

http://hcsbc.co.za/contact-us/#contact-agents


For more information, contact: www.hcsbc.co.za




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