Overtime, Leave & Wage Deductions Under the BCEA – What Employers Need to Know

Managing employees is more than just making sure everyone shows up for work on time. Employers have a legal responsibility to comply with the Basic Conditions of Employment Act (BCEA) when it comes to overtime, leave, and salary deductions.

However, these are some of the most common areas of dispute in the workplace. Many businesses unintentionally miscalculate overtime, mismanage leave, or deduct wages incorrectly—leading to employee complaints, CCMA cases, and penalties.

If you’re an employer, understanding these rules is essential to keeping your workplace compliant and avoiding unnecessary legal trouble.

Overtime – What’s Legal and What’s Not?   

Overtime isn’t just about working extra hours—it must be properly managed and fairly compensated.

Under the BCEA, employees cannot be forced to work overtime unless they agree to it. If they do work extra hours, employers must pay them correctly.

So how much should overtime be paid?  

• Any work beyond 45 hours per week is considered overtime.

• Employees should not work more than 10 hours of overtime per week.

• Overtime must be paid at 1.5 times the employee’s normal hourly rate.

• If an employee works on a Sunday or public holiday, they must be paid double their normal wage.

Some employers choose to offer time off instead of paying overtime, but this must be agreed upon in writing. For every one hour of overtime worked, the employee must get 1.5 hours off.

Many businesses fail to track overtime properly, leading to underpayments and disputes. To avoid this, employers should use a reliable time-tracking system and ensure that employment contracts clearly outline how overtime will be handled.

Leave Entitlements – Are You Calculating It Correctly?   

Employees are entitled to different types of leave under the BCEA, and miscalculating or denying leave incorrectly can lead to serious problems.

Annual Leave  

Employees must receive 21 consecutive days of paid annual leave per year, or if calculated differently, one day of leave for every 17 days worked.

Employee’s Annual Leave cycle starts on the day that they are employed and employers have the right to inform an employee that they are obligated to only take their annual leave days during a period that the employer observes its annual shut down period.

Sick Leave  

Employees don’t get a set number of sick leave days per year. Instead, they receive the total equivalent of 30 days’ paid workdays over a three-year cycle.

For example, if an employee works five days a week, they are entitled to 30 days of sick leave over three years. If an employee works six days a week, they are entitled to 36 days of sick leave over three years.

Employers who incorrectly apply sick leave rules may deny employees leave they are legally entitled to.

Maternity Leave  

A pregnant employee has the right to four consecutive months of maternity leave, and employers are not required to pay their salary during this period. However, employees can claim UIF to recover part of their wages.

A common mistake employers make is terminating an employee’s contract because they are pregnant. This is considered automatic unfair dismissal and can result in severe penalties which amounts to 12 months compensation at the CCMA

Family Responsibility Leave  

Employees are entitled to three days of paid family responsibility leave per year, which applies to urgent situations like:

• The birth of a child.

• Illness or death of a spouse, child, or parent.

If an employer wrongfully denies this leave, the employee has the right to refer a dispute to the CCMA or Bargaining Council, or consult their union representative.

To stay compliant, employers must have a clear leave policy and ensure that all leave types are tracked accurately.

Salary Deductions – What Employers Can and Can’t Do  

Many employers assume that they can deduct money from an employee’s salary for things like damages, uniforms, or company loans—but this isn’t always legal.

What Can Be Deducted?  

The only deductions that do not require employee consent are:

• PAYE and UIF contributions.

• Court-ordered deductions, such as garnishee orders.

• Amounts that are aligned with Bargaining Councils

What Requires Employee Consent?  

If an employer wants to deduct money for:

• Company loans or advances.

• Damages caused by an employee.

• Training costs.

The employee must provide written consent before any money is deducted.

What Employers Can’t Deduct   

Even if an employee loses or damages company property, an employer cannot deduct the cost from their wages unless the employee has agreed to it in writing.

A major red flag is when employers try to deduct money from an employee’s final paycheck if they resign or are dismissed. This is only legal if the employee agrees to it or if the employer obtains a court order.

An employer is legally not entitled to deduct more than 25% of an employee’s basic remuneration, irrespective of whether the payment is the employee’s final payment that is due after the termination of the employment relationship.

Employers must be cautious when dealing with salary deductions. If they make unauthorised deductions, they can be taken to the Department of Labour or CCMA or the Labour Court.

Stay BCEA-Compliant with Chamlabour   

Managing overtime, leave, and deductions correctly is critical for any business. If done incorrectly, it can lead to serious financial and legal consequences.

We help businesses:

• Set up clear policies for overtime, leave, and salary deductions.

• Ensure payroll compliance to avoid legal disputes.

• Provide expert HR and labour law advice to keep your business protected.

📢 Don’t let payroll mistakes cost you—let us help you get it right.