The TESD: Wage Exemption Procedure

Important note for management:

It is important to note that wage increase exemption applications must be lodged with the bargaining council on or before 31 July 2024

The industry’s current wage exemption procedure continues to apply. Any company that is unable to implement the full wage increase may make application to its local Regional Council to implement wage increases of a lesser amount than those agreed.

If the application is rejected, then an appeal may be immediately lodged with the Independent Exemptions Appeal Board (IEAB) which is an independent body established in terms of the Labour Relations Act.

The wage exemption procedure is detailed hereunder:

  • Individual companies seeking exemption to pay a lesser wage increase must complete the wage exemption application form attached hereto.
  • Companies seeking exemption must consult their employees on the intention to apply for exemption and the application should contain details and proof of this consultation process.
  • It is important to note that the employees’ view on the application is not decisive but merely one of the factors that the Council and Board will take into account when considering an application and appeal.
  • The exemption application must be accompanied by relevant financial information supporting the motivation for the proposed exemption.
  • The application must be lodged with the local Regional Council as soon as possible (but by no later than 31 July 2024).
  • The proposed exempted wage increase should be implemented by the company until the exemption process has been concluded, after which any adjustments must be applied retrospectively from date of application of the agreement (i.e., if the exemption is refused, then the full agreed wage increase will apply from 1 July 2024).
  • The Regional Council will make a decision on the exemption application.
  • Where the exemption is rejected then an appeal may be lodged with the Independent Exemption Appeal Board. 

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