Fast Food, Restaurant, Catering and Allied Trades

The Main Agreement for the Bargaining Council for the Fast Food, Restaurant, Catering and Allied Trades has been extended from Gauteng to non-parties. This resulted in the Main Agreement now being binding on restaurants that previously fell under the Hospitality Sectorial Determination.

The following is the main differences between the Main Agreement and the Hospitality Sectorial Determination that will have an impact on the industry.

1) GENERAL

1.1 PERIOD OF OPERATION OF AGREEMENT

This agreement shall apply to non- parties as from 18 January 2020 from which date thIs Agreement shall be extended to become binding on non -parties and the Agreement shall remain in force for the period ending 31” August 2026.

1.2 THE SECTOR

The sector, Fast Food, Restaurant, Catering and Allied Industries, means the industries concerned with the Fast Food Outlet, Convenience Store, Industrial or Commercial Caterer function, Caterer, Contract Caterer, Catering and associated activities, without in any way limiting the ordinary meaning of the expression and include(s) the sector or sectors and or establishment(s) in which person( s) carry on the business or in which employers and employees are associated, for the purposes of preparing, baking, providing, supplying. Serving, selling, processing and producing meals. These shall include the provision of meals in bulk edibles and beverages on any premises. Included would be all operations incidental to or in support of the employers’ enterprise in relation to any of the above- mentioned activities and would further include:

(a) All franchisor(s) where such franchisor or their employee(s) are associated for the activities prescribed above: and

(b) The baking of wheaten products which includes pies snacks, confectionaries and pizzas

for sale, directly to customers for consumption whether on or off the premises where such products are baked.

1.3 EXCLUSIONS

The following business activities are specifically excluded from the ambit of this gazette:

( I ) Any casino and hotel industry and all activities that is ancillary and incidental to carrying on the primary activities of such industry, for the purpose of this exclusion. Such primary activities are to be carried and managed and operated solely and exclusively, by the hotel or casino as the case may be at which these activities are undertaken and such activities must form an integral part of the business and operations of the hotel and casino in question.

(2) Any catering facility of whatever nature which is owned managed or operated by sports and recreation clubs on its own premises and which in turn provides food and beverages to its members and patrons from the premises from which its sports and recreation facilities are undertaken.

(3) The business conducted by filling and /or service stations, including ancillary activities forming. Part of the filling station linked to the convenience store environment inclusive of the preparing. Serving and selling of food /beverages to customers, but excluding activities of separately registered establishments whose sole activities relates to the restaurant, tea room and catering environment.

(4) Any outlet which prepares and sells food and beverages and is operated as part of a supermarket undertaking and which in turn is owned managed and operated by the supermarket undertaking in question and conducted from the premises of such supermarket undertaking.

1.4 CONTRACT OF EMPLOYMENT

The following information to be included in all contracts of employment

“The Employers business is covered by the BARGAINING COUNCIL FOR THE FAST FOOD, RESTAURANT, CATERING AND ALLIED TRADES This is to protect the employee because of terms and conditions, more favourable to the BCEA collectively negotiated, that takes precedence over those of the BCEA, that will be applicable to the employee”.

2) CHANGES WITH FINANCIAL IMPACT ON EMPLOYERS

2.1 WAGE RATES

Please see attachment annexure A.

2.2 PROBATION

An employee on probation earns ten per cent (10%) less than the prescribed hourly wages for a period not exceeding 3(three) months which should not be less than the hourly wage prescribed by the National Minimum Wage Act

2.3 OVERTIME

Overtime shall not exceed four hours per day, the BCEA is maximum 3 overtime hours per day

              2.4 UNIFORM

(I ) A employer shall supply and maintain free of charge any uniform, overall, .washable coat, cap or apron that by any law he is compelled to provide for his employee and any such uniform, overall, washable coat, cap or apron shall remain the property of’ the employer.

(2) An employer may require an employee to pay a deposit towards wearing apparel. this deposit shall be refunded if the apparel being returned in reasonable condition, less fair wear and tear.

(3) An employer may agree with an employee that the employee shall clean his wearing apparel in his or her on time. life which the employer shall pay the employee R 17.50 per week. This amount shall not be payable when the employee is off work.

2.5 NOTICE PERIOD

Three weeks written notice in the event you have been employed for longer than one year, BCEA prescribe four weeks’ notice for employees employed for longer than one year

          2.6 ANNUAL BONUS.

All employees other than part time commission workers and employees earning in excess of the Threshold at present R205 433 who are employed by the same employer for a minimum of:

(a) 12 consecutive months, shall receive one week’s wages as an annual bonus payable during December.

(b) 24 consecutive months or more, shall receive 2 week’s wages as an annual bonus payable during December.

2.7 FUNERAL BENEFITS

Membership of the Hospitality Group Funeral Insurance Scheme,  as underwritten by Metropolitan Life Limited with Registration No. 1949/032491’06 as per policy number 415I686104 is compulsory for all employees under the age of 65 (sixty five years)  who are employed in the Scope and Sector of the Council.

For the purpose of providing employees with Funeral Benefits. every employer shall_ in respect of each month. deduct R12.51 from the wages payable to each employee and add to such a deduction an amount of R12.50. Provided that, for the purpose of this paragraph, an employee shall he deemed to have worked during any period in which an employee is absent from work on leave, sick leave or maternity lease as provided in this Agreement. Provided further. that the monthly contributions

by the employer as well as employee’s deductions must he paid during the months that the employee is absent from work.

2.8 PROVIDENT FUND

Membership of the Momentum “Funds At Work Umbrella Provident fund” with Registration No’s 12/08/32083/1. SARS 18 /20/No 36990 is compulsory for all employees other than casual employees who are employed within the Scope and Sector of the Council and who have not reached the age of sixty five (65) years.

For the purpose of providing employees with Provident Fund Benefits, every employer shall in respect of each month deduct  % from the wages payable to each employee and add to such deduction an equal amount of 5 %.

Every employer shall submit the participating employee’s membership particulars to the administrator in prescribed electronic format and in such detail as required in terms of the Provident Fund Rules and Regulations and this Agreement h) no later than the 20^th of each month.

Every .Employer in the sector of the Council must complete an application in the prescribed form

2.9 NIGHT WORK

An employer who requires an employee to perform night work, shall pay such an employee an amount of R1.00 per hour as a shift allowance. in addition to the employee’s salary for the hours worked between 18h00 and 06h00 or grant the employee at least 10 minutes time off on full pay. for every hour worked at the end of each week.

Provisions of transport for night workers: An employer who requires an employee to work after 22h30 shall pay such an employee One hundred and Fifty Rand (RI50.00) per month as a “Late Night Allowance- provided that if an employer daily provides free transport home for late night workers, he shall not he required to pay late night allowance to those employees.

Payment for night work applies to an employee who works after 23h00 and before 06h00 at least five times per month or 50 times per year.

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2.10 WORK ON A SUNDAY

If the payment calculated for work on a Sunday is less than the employee’s daily wage. The employer must pay the employee for the time worked on that Sunday.. the employee’s daily wage.

2.11 COMMISSION WORKERS CONTRACT OF EMPLOYMENT

(1) The owner/management of an establishment and a commission worker may agree in writing that the commission worker will perform the duties of a waiter if and when so required by the owner on which commission will he paid at the end of each shift, week /month.

(2) The owner/management shall pay a commission worker the rates applicable for commission work as agreed: Provided that if during any calculation period, the commission worker does not earn an amount equivalent to at least the prescribed minimum wage for waiters, excluding any gratuity or tips, the owner shall pay the commission worker not less than the applicable minimum wage as prescribed for waiters for the hours that the commission worker worked.

(3) Commission workers to receive a funeral benefit. with both parties contributing in equal portions to the monthly contribution in the amount of R12-50 each.

(4) Commission workers working a minimum of 130 hours per month and for a minimum period of 2 years and longer with the sane employer, shall he eligible to join the Momentum – “Funds At Work Umbrella Provident Fund “.

(5) An agreement to perform commission work in terms of this clause shall he concluded between the parties and shall include-

(a ) the commission worker’s rate of commission:

(b) the basis for calculating commission:

(c) the period over which the payment is calculated. the period may not he longer than one month:

(d) When the employer shalt pay the commission to the employee. which commission may not be paid more than seven days afler the end of the period in which the commission was earned; and

(e) the type. description. number. quantity. margin. profit or orders (individual, weekly. monthly or others for which the employer is entitled to earn commission.

(6) The employer shall supply the employee with a copy of the agreement to perform commission work.

(7) The commission worker may apply for full time employment as a waiter. if a vacancy exists within the establishment for a wailer and if the commission worker qualifies for the position of waiter.

(8) An employer who intends to cancel or amend the agreement in operation relating to commission work. or the rates applicable thereunder. shall give the effected employee not less than four weeks’ notice of such intention.

2.12 INCOME AND EXPENSES OF THE COUNCIL

(1) (a) For the purpose of meeting the expenses of the Council. every employer shall deduct from the wages of each employee. R5.00 per month in the ease of all employees who have worked in that month: Provided that, for the purposes of this paragraph an employee shall be deemed to have worked during an period in which he is absent front work on paid leave or sick leave as provided in this Agreement.

(b) For the purpose of meeting the expenses of the Council for its dispute resolution function, every employer shall deduct front the wages of each employee R3.00 per month in the case of all employees who have worked in that month: Provided that. for the purposes of this paragraph. An employee shall he deemed to have worked during a period in which he is absent from work on paid leave or sick leave as provided in this Agreement.

(2 ):Every employer shall contribute to the funds of the Council —

(a) an amount equal to that deducted from the employees as prescribed in sub clause (I) (a) and (b)

(b) In addition an amount of R25.00 in respect of each establishment each month or part thereof. During which deductions were made or were required to he made in terms of sub clause (b). which shall he contributed by the employer himself.

(3) The total amounts deducted. or required to be deducted from the wages of employees together with the amounts required to he contributed by the employer in terms of sub clause (2). shall be paid into the Council’s banking account (Standard Bank Account No: 0003 1791 A Branch code: 000205) by not later than the 15^TH day. of the month succeeding that month during which the deductions and contributions were made or were required to he made.

(4) A proof of payment together with a completed statement showing the number of employees from whom the deductions were made or were required to he made shall be forwarded monthly by the employer to the Council by not later than the I5th day of each month succeeding that month during which the deductions were made.

(5) Notwithstanding am thing to the contras contained in this Agreement. the Council shall be entitled to a 5% collection tee on all funds administered by the Council or collected on behalf of any third party or fund. which said amounts shall accrue to the general funds of the Council. The Council in its sole discretion may waive the right to such entitlement.

3) CHANGES WITH IMPACT ON LABOUR RELATIONS

3.1 INDUSTRIAL ACTION

(1) No person bound by the provisions of this Agreement entered into by the parties shall engage in or participate in a strike or lock -out or any conduct in the furtherance of a strike or a lock -out in respect of any matter regulated by this Agreement for its duration.

(2) The forum for negotiation and conclusion of substantive agreements on wages. benefits and other conditions of employment between the members of the employers’ organisations party to this Agreement, on the one hand and employees and trade unions on the other hand, shall he the Council and not at shop floor level.

(3) No trade union or employers’ organisation may attempt to induce or compel or be induced or compelled by any natural or juristic person or other organisation. by a form of strike or lock -out, to negotiate the issues referred to in paragraph above  at any level other than this Council.

(4) Any inconsistent provisions of collective procedural agreements between employers and trade unions and their members shall be regarded by such parties as amended to accommodate the provisions of paragraph 2. and 3 ;those and shall not be binding on the parties to the extent that the provisions of such agreements conflict as those of paragraph 2 and 3 above.

3.2 PROHIBITION OF FURTHER NEGOTIATION

The contents of this Agreement are actual and not minimum standards for the industry.. No employer(s). employer(s) organisation(s), employee(s). or Trade Union(s) may engage in a work stoppage or lockout in pursuance of an improvement or interpretations to any terms and conditions of this Agreement during the currency of this Agreement.

The provisions contained in this, shall apply to all employers who are members of the employers’ organisations and their