Labour Relations Act, 1995 (Act No. 66 of 1995)NoticesNational Bargaining Council for the Chemical IndustryPetroleum SectorSubstantive Agreement 2025/2028AnnexuresAnnexure C - Criteria for Small Business Exemptions Policy |
ANNEXURE C
CRITERIA FOR SMALL BUSINESS EXEMPTIONS POLICY
| 14. | Exemptions in this category will be granted for a period not exceeding 3 years. |
Exemptions shall be in respect of the wage increase or in respect of specified clauses of the agreement.
| 15. | The Council will consider applications on merit, guided by current South African legal guidelines on the definition of SMME'S's and the application of these definitions amongst different sectors, taking into account one or more of the following factors:— |
| 15.1 | That the business is not the subsidiary of another company; |
| 15.2 | Its employment numbers keep it within the definition of an SMME'S, within the bargaining unit, in terms of the legal framework of the definition of an SMME'S; |
| 15.3 | It is able to show that such an exemption will enable it to retain existing jobs or create additional jobs in the firm. This particular factor must be covered in the motivation; |
| 15.4 | The financial situation of the company. |
PROCEDURE TO BE FOLLOWED TO CONSIDER THE APPLICATION
| 16. | Application for Exemptions by SMME'S will be filed by the Company within 10 days of the Company having been declared an SMME. |
| 17. | The application will be considered by the SMME Advisory Panel within 10 days from the date on which the application was filed with the Council. |
| 18. | The SMME Advisory Panel shall issue the outcome within 7 days from the date of the sitting. |
FACTS TO BE CONSIDERED IN DETERMINING THE APPLICATION
| 19. | The Company making the Application must comply with Annexure A. |
COMPOSITION OF THE EXEMPTIONS COMMITTEE FOR SMALL BUSINESS APPLICATIONS
| 20. | Application for Exemptions by SMME shall be considered by the SMME Advisory Panel comprising an equal number of representatives (two per side) from the Employers and Trade Unions and an Accountant/External Auditor. |
| 21. | The General Secretary shall chair the Advisory Panel. In the event the chairperson is not available, then the Committee will elect someone amongst themselves to chair that specific sitting. |
PHASE IN EXEMPTIONS
| 22. | The Council shall, in recognizing the financial constraints faced by SMMEs, grant the SMME a phased-in period of up to 3 years for compliance with the minimum Bargaining Council regulations. |
| 23. | SMMEs shall use this time to adjust their operations and finances gradually, minimizing disruptions and mitigating financial risks. |
| 24. | Application for phase-in exemptions must be accompanied by completion of the standard application for exemption questionnaire and shall be dealt with after giving consideration to the following:— |
clear evidence of financial difficulties, including
| 24.1 | The latest Audited Financial statements and/or management accounts; |
| 24.2 | Explanation of the difficulties faced; |
| 24.3 | Company motivation, business plan and phase-in plan indicating how parity will be achieved . |
| 25. | No Company that has agreed to adopt the phase-in program on a voluntary basis may retrench any worker as a direct result of a phasing-in period of the new wage structure unless such retrenchment is on a voluntary basis or unless there are exceptional circumstances beyond the Employer's control. |
AMENDMENT OF THIS POLICY
| 26. | The amendment of this policy shall be made as and when the need arises, taking into consideration the developments in the law. The amendments will not be binding until such time that they are approved by the Executive Committee and ratified by the Full Council, having gone through the relevant institutional structures. |