Cape Town – Businesses need to respond to the challenges of load shedding by reaching an agreement with its employees to ensure there is a win-win situation, a law expert explained.
When an employee arrives at work and offers his or her services to the employer, the employer is obliged to pay, according to Werksmans Attorneys director Jacques van Wyk.
This is due to a contract of employment or the Basic Conditions of Employment Act.
“The fact that the factory, for instance, isn’t running is not the employee's fault and the employer is obliged to pay nonetheless,” he told Fin24.
The employers and employees can, however, agree to have short-time as a measure to soften the blow against the business, he said.
WATCH: Why employers must pay during load shedding
Overtime after load shedding
If businesses want their staff to work overtime to catch up on work missed due to load shedding, they will have to pay their employees at overtime rates, said Van Wyk.
“Any hours worked outside the normal working hours must be remunerated at overtime rates, which is at one-and-a-half of the ordinary rate,” he said.
Businesses could aim to reach a compromise with their employees and their unions to share the burden of load shedding, said Van Wyk.
“If for instance there is load shedding, the employees will get a guarantee of a minimum wage, but not the full rate,” he said. “If that fails, and the impact of loss of production is such, then the employer is faced with the option of restructuring its business.
“Load shedding is considered a factor that causes operational challenges,” he said. “The employer must respond to that operational challenge as it would respond to any other challenge.”
WATCH: How employers can respond to load shedding challenges