[Question] Non-payment of salary - what recourse to employee

[Morticia]

To all the Labour Law guru's out there:

An employer only paid half of previous month's salary to the relevant employee, with a promise of the rest to follow "as soon as [some other contract's] money comes in". 2 weeks later, still no balance of salary and the employer silent as a tombstone.

What is the legal position of the employee?
What are the proper procedures he must follow?
Etc, etc, etc.

[Dave A]

I hope someone has a labour relations procedure type answer to this, but here are a few things I do know should be considered quite carefully:

• If the business does go under, unpaid salaries fall into the same pool as concurrent creditors.
• Getting a judgement/ruling/order is one thing - converting a judgement into payment is something else completely.
• The final nail in the coffin of a business on the edge is the first judgement.

50% is pretty close to what the employee would get on UIF. Do the best you can to make sure you don't have to get used to living on that kind of budget. Help the business make it.

[Neels du Toit]

Salaries is legal bounded and must be paid not seven days later than the date mentioned in the agreement between the employer - Legal entity- and the employee.

Don't go into a verbal aggreement once the employer start making promises, specially not about your remuneration.

If this agreement is not older than 30 days replay with your email address and I will assit you.

[JEPHNEY]

the employee may refer the matter to the department of labour for unfair labour practice and also i am a labour consultants who give advices to the employee and the employer on labour law matter

if you need any more information please call me on 0760899406

thanks
Jephney

[Morticia]

Thanks Jephney. may just take you up on your offer, although perhaps it's better for the person to just cut his losses and use the episode as a learning curve?

The business has subsequently closed it's doors at the end of September (obviously still not paying the arrears or any other monies owing) and when the disgruntled employee mentioned possible Labour Law/CCMA action, the owner merely laughed at him "you'll be lucky if you get R400 out of me, it's not the first time I'm doing this".

How is it possible for a person to just open one business after another, make bad business decisions and as soon as the pawpaw hits the fan, makes a run for it without any regard for the employees? There should be some way of flagging "bad" employers - they are entitled to run credit and criminal record checks on prospective employees, it's high time employees be empowered to gain the same information about a prospective employer??

[Dave A]

People make mistakes. People let you down. Businesses fail. It can be a very rough world. And a very unfair one too.

Right now there is a domino effect in play and I'm afraid there are going to be more stories like these. Lots of businesses are just one or two bad customers away from the brink and there are a heck of a lot more bad customers around at the moment.

I'm seeing some big wheeler dealers who are going to be lucky to get out with their underwear. Leveraged to the hilt and that lever is biting back. Somewhere between bad luck, bad timing or pushing their luck one too many times. But not intentional, I'm sure.

It's when they drop you deliberately that I get mad.

[JEPHNEY]

IF A NEW BUSINESS OWNER BUYS A OLD BUSINESS , THE LABOUR RELATION REQUIRES HIM OR HER TO TAKE THE OBLIGATION OF ANY OLD EMPLOYER, HE CHANGE BUSINESS YOU NEED TO REFER THE MATTER TO CCMA USING HIS RESIDENCIAL ADDRESS. THE CCMA WILL CALL HIM TO THE HEARING , PLEASE CALL ME MORCITI TO HELP IN THIS REGARDS. FRM JEPHNEY

[casper]

Another 2 years down the line....

I am in a Management Role at one of the largest corporate companies in the country and within our industry the second largest in the world. So my case is not the same as there is no money available, it is in my mind based on intimidation and manipulation by a senior executive.

In the beginning of October I tendered my resignation due to family and health reasons and accepted an offer in Australia. As per my employment contract I need to give 3 Months notice which I have and am thus leaving at the end of December.

During my tenure at my company over the last 2.5 years they contributed to my Masters degree through a bursary and when I wanted to leave last year December for similar reasons paid me a retention bonus.

I am more than happy to repay the company this money as the period that I needed to work for them is not yet past and thus based on the contracts I signed I need to pay them what is still outstanding on the contract.

This month (my first month of notice) however, they decided the withhold my salary and when I queried it with Payroll I found out that it was not a systems error but that the HR person dealing with my resignation intentionally requested this to be done, on instruction from our CIO and then told me that unless I give them a signed letter as to how I will pay back the money they will not release my salary to me.

I was then told by this same HR person that I had two options of which are to either write the letter, sign it and submit it or take legal action of which I chose the latter and stated that they are in contradiction with my signed employment contract which clearly states that at termination of my contract they may withhold my salary to cover any debt that I have towards the company. Based on my own research I am also convinced that it is not legal to do such a thing for any reason.

I have a family of 5 to support and debit orders are behaving like rubber since the 25th.

I hope you can assist or provide guidance.

[Dave A]

I hope your lawyer is giving you good advice rather than just building a fee.

Looking at it from the company's point of view, I understand their desire to secure their position. Being in a management role yourself, I trust you understand why the HR manager is bound to consider the interests of the company before he/she considers the impact of these decisions on yourself.

You work in this self-same corporate. You should easily be able to put yourself in your adversary's shoes and figure out what will satisfy them and still work for you.