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Thread: Not registered for security provident fund

  1. #1
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    Not registered for security provident fund

    I am in the process of winding up a private security contract we had with a single client.
    The legal consultation/retrenchment process is currently underway. I was unaware (no excuses) of a determination which allegedly requires contributions and membership of a provident fund for all the workers. I have always offered to set up such a scheme but the employees refused. As a result, I have not registered, nor did we make any deductions from the salaries. My questions are:
    - Can employees opt out of the Security Industry provident fund?
    - If I register now and make the contributions going back a few years, could the employee contributions now be deducted from final settlements, as they have not “paid” their contributions at all anyway?
    Thanks in advance.
    E

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    Site Caretaker Dave A's Avatar
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    You'll need to check this, but my limited understanding is that the security industry pension fund collective agreement is a party only agreement. (By coincidence, it came up in discussions with a Trade Unionist a couple of weeks ago).

    If I was in your shoes, I'd examine your position very closely before rolling over. When it comes to pension fund contributions, trying to rectify a historical issue like this after the fact comes with a statutory sting in the tail - section 13A late payment interest.
    The trouble with opportunity is it normally comes dressed up as work.

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    Hi Dave, Thank you. I noticed the interest - makes the cash loan industry seem reasonable!

    If you don't mind me asking - what is a "party only agreement"?

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    Site Caretaker Dave A's Avatar
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    It only applies to the parties to the collective agreement - I.e. members of the employer representative organisations and employees who are members of the employees representative organisations (trade unions), and has not been extended by the Minister (Labour) to non-parties.
    The trouble with opportunity is it normally comes dressed up as work.

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