Common BCEA Compliance Mistakes Employers Make (And How to Fix Them)

South Africa’s Basic Conditions of Employment Act (BCEA) is designed to protect both employers and employees by ensuring fair workplace practices. But even with clear guidelines, many businesses unintentionally make compliance mistakes that can lead to CCMA disputes, fines, or even lawsuits.

If you’re running a business, avoiding these common pitfalls is crucial. Let’s go through the most frequent mistakes employers make and how you can fix them before they become a problem.

Keeping Accurate Employment Records – Why It Matters   

One of the biggest mistakes businesses make is failing to keep proper records of employee work hours, leave days, and salary payments. It may not seem like a big deal at first, but when a dispute arises over unpaid overtime or incorrect leave allocation, not having the right documentation can put you in a difficult position.

To stay compliant, employers need to keep detailed records of working hours, overtime, payslips, and leave. These records should be kept for at least three years, as required by law. Relying on a manual system can be risky, so investing in an HR or payroll system can make a huge difference in tracking and managing employee data.

Overtime Miscalculations – Are You Paying Correctly?   

Overtime pay is one of the most misunderstood areas of the BCEA. Many employers either underpay for overtime or fail to recognise when it applies. Employees should never work more than 45 hours a week without being compensated. If they do, overtime kicks in, and they must be paid at 1.5 times their normal wage.

A common mistake is not tracking extra hours correctly or assuming that giving employees time off instead of payment is automatically allowed. If an employer offers time off in place of overtime pay, the law requires that it be given at a rate of 1.5 hours off for every 1 hour of overtime worked. Misunderstanding these rules often leads to payroll errors, which can result in complaints and CCMA disputes.

Having a clear overtime policy in employment contracts helps prevent confusion. Employees should also be informed upfront about how overtime is calculated and when they are expected to work beyond standard hours.

Leave Mismanagement – Are You Following the BCEA?   

Leave disputes are another common headache for employers. The BCEA clearly states that employees are entitled to 21 consecutive days of paid annual leave per year, but miscalculations happen all the time. Some employers still count weekends in leave days when they shouldn’t, while others don’t track leave correctly, resulting in employees being underpaid or given incorrect time off.

Sick leave is another area where mistakes happen. Employees don’t get a set number of sick leave days per year, but rather a total allocation for a three-year cycle. Over this period, they are entitled to the equivalent of six weeks of sick leave based on their normal workweek. If this isn’t tracked correctly, an employee may run out of sick leave unexpectedly or be denied time off they are legally entitled to.

Maternity leave can also be misunderstood. While employers are not required to pay an employee’s salary during maternity leave, the employee does have the right to claim UIF for a portion of their earnings. Many businesses, however, still fail to guide employees correctly on their UIF claims, which leads to unnecessary confusion and frustration.

The best way to avoid leave-related issues is to have a transparent leave policy that aligns with the BCEA and to keep an accurate leave tracking system in place.

Unfair Salary Deductions – What Employers Can and Can’t Do   

It’s not uncommon for employers to deduct money from an employee’s salary for various reasons, but not all deductions are legal. The only deductions that can be made without consent are PAYE, UIF contributions, and legally required garnishee orders. Anything else—such as deductions for company loans, uniforms, or training costs—must be agreed to in writing.

A big mistake employers make is deducting money from an employee’s final payment when they resign or are dismissed. Even if an employee owes the company money for damages or lost property, an employer cannot simply deduct the amount from their wages without written consent or a court order. This is one of the fastest ways to end up with a legal dispute.

To avoid problems, employers should have a clear salary deduction policy, ensure that all deductions are agreed upon in writing, and avoid making last-minute deductions from final paychecks without legal approval.

Incorrect Termination Procedures – Following the Right Process   

Terminating an employee is never easy, but failing to follow the correct process can result in an unfair dismissal claim.

Notice periods must be adhered to if an employee is not dismissed for misconduct, depending on how long the employee has worked at the company. If an employee has been employed for less than six months, one week’s notice is required. If they’ve been employed for longer than six months, but less than a year, it’s two weeks, and for anything beyond a year, four weeks’ notice is necessary.

Beyond the notice period, employers often overlook the importance of procedural fairness. If an employee is dismissed for poor performance, misconduct, or operational reasons, there must be a valid reason, and the dismissal must follow the correct legal steps. Skipping a proper disciplinary process or failing to give an employee the chance to respond to allegations can lead to serious legal consequences.

Employers who are unsure about proper termination procedures should seek legal guidance before making any final decisions. A small mistake in how a dismissal is handled can end up costing a company significantly in settlement payouts or legal fees.

Stay Compliant with Chamlabour   

Understanding the BCEA is essential for employers, but staying compliant isn’t always easy. Even small mistakes can have serious consequences, from CCMA disputes to financial penalties.

At Chamlabour, we help businesses navigate labour laws, ensuring compliance with employment contracts, leave policies, payroll management, and termination procedures. Instead of worrying about legal pitfalls, let our team handle the complexities for you.

📢 Don’t wait for a compliance issue to become a legal battle – be proactive and protect your business today.