[Question] Unethical Employer

[cindyreuben]

Hi all

A person was transferred to open a branch in the Cape. Three months later her salary is cut in half and she is told to accept the offer or resign within 24 hours (on email). The employer is using the ploy of "re-structuring" and has stated that employees need to re-apply for their positions, at half their salaries or resign. However, management salaries have not been cut nor have they been "retrenched". Where does the employee go to the CCMA - I would presume in the Cape? Secondly - how valid is the "re-structuring" process? The employer deducts pension and does not pay it over, and is seriously in arrears with PAYE, UIF and SDL. But a really nasty piece of work who enjoys intimidating people and throwing tantrums. Should she go via the CCMA and in the interim look for a Labour Lawyer (remember her salary has just been cut in half)? In addition - the employer decided that her flat would become the overnight accommodation for people going to the Cape on business and moved two single beds into her home. Then sent technicians to go and stay there. She pays the rent and the lease is in her name. She shares with someone and that is how he got the keys. The first she knew about it was when the neighbours phoned her at work and told her there were strange men going in and out of her house!

This guy is priceless!

I have a little HR Experience but feel overwhelmed about where to tell her to start.

[Greig Whitton]

A person was transferred to open a branch in the Cape. Three months later her salary is cut in half and she is told to accept the offer or resign within 24 hours (on email).

Unilaterally changing an employee's terms and conditions of employment is illegal.

Where does the employee go to the CCMA - I would presume in the Cape?

Contact your nearest Department of Labour Centre or CCMA office.

Secondly - how valid is the "re-structuring" process?

It's legal for employers to restructure, but they need to follow a proper procedure (which includes consulting with employees and considering alternatives). Simply announcing that restructuring needs to happen and that employees need to accept pay cuts is not legal.

The employer deducts pension and does not pay it over, and is seriously in arrears with PAYE, UIF and SDL.

Clearly and seriously illegal.

Should she go via the CCMA and in the interim look for a Labour Lawyer (remember her salary has just been cut in half)?

I don't think a labour lawyer is required since this sounds like a pretty open and shut case. I would contact the nearest labour centre / CCMA office and report the employer to SARS.

In addition - the employer decided that her flat would become the overnight accommodation for people going to the Cape on business and moved two single beds into her home. Then sent technicians to go and stay there. She pays the rent and the lease is in her name. She shares with someone and that is how he got the keys. The first she knew about it was when the neighbours phoned her at work and told her there were strange men going in and out of her house!

This is ... crazy. And, of course, completely illegal. Change the locks and report the employer to the police.

[HR Solutions]

Im not sure why this person did a few things .... A little tip off to the hotline is what is called for here.

[cindyreuben]

Number of the hotline?

[HR Solutions]

Google it or phone SARS for it

[cindyreuben]

oh duh! that was a stupid question!!

Thanks!

[Dave A]

The employer deducts pension and does not pay it over.

This heads into the territory of the Pension Funds Adjudicator.

If you're going to go down the PFA route, just make sure you check through this guide first. In particular note point 5 -

5. What you must do before you complain to the Adjudicator
Before you complain to the Adjudicator you must first lodge your complaint in writing with the fund or your employer. The fund or employer must then consider your complaint and reply to you in writing within 30 days of receiving it. You can only submit your complaint to the Adjudicator if you are not satisfied with the reply you get, or if the fund or employer fails to reply within 30 days after receiving your complaint. Disputes can often be resolved amicably among the parties without getting the Adjudicator involved at all. In fact the Pension Funds Act encourages this. So it is important that you first discuss your complaint with your employer and the fund, perhaps through the fund administrator, to see if they can help you resolve the problem.