Bargaining Council: Critical Info on Rent-a-Chair Changes & Designated Council Agents
December 2024- SEASON’S GREETINGS
The Council staff wish you all a happy and peaceful holiday season. Please note that the Council’s Offices will close at 13h00 on Friday, 20 December 2024 and will re-open on Thursday, 2 January 2025.
Main Collective Agreement Changes
Amending Agreement
An Agreement amending the Main Collective Agreement was published and extended through Notice 2856 in the Government Gazette, No. 51657 dated 29 November 2024. The amendments include:
• The deletion of Annexure G – Student Agreement
• Amendments to Annexure H – Salary Schedules (removes student categories)
Please Note: The updated salary/wage schedules with the increases effective from 1 January 2025 are currently being finalised and will be uploaded onto the Council’s website.
• Amendments to Annexure I - Sick Pay Fund Rules (the amendments were outlined in the August 2024 Council Chronicle)
EOHCB Membership Fees 2024
The EOHCB Membership Fees will increase with effect from 1 January 2025 and may be accessed via the Council’s website. See Annexure C 2025-Annexure-C-EOHCB-Fees.pdf.
Changes to "Legal Owners" in the Main Collective Agreement
1. Changes
1.1. The concept of "rent-a-chair" is common in the Hairdressing, Cosmetology, Beauty, and Skincare Industry. This is when an individual, without any employees, operates their own business within a salon by renting a chair, paying either a fixed rent or a percentage of their turnover to the salon owner.
1.2. To prevent misuse of this arrangement and protect employees, the Bargaining Council had previously defined a "legal owner" in the main collective agreement. A legal owner was any person or entity conducting business from a salon without employing anyone.
2. Key Update:
2.1. The Bargaining Council has now taken a decision to remove the "legal owner" or "rent-a-chair" concept from the main collective agreement, due to the absence of an employer-employee relationship.
3. What This Means:
3.1. No Required Contributions: Legal owners or "rent-a-chairs" no longer have to make contributions to the Bargaining Council. However, if Legal owners want to continue participating in and enjoying benefits offered by the Council, such as the Sick Pay Fund or the Sick Benefit Fund or want to continue being a member of any of the parties to the Bargaining Council, they will have to make payment towards the specific benefit required or the membership fee of the party that they want to continue being a member of.
3.2. No Collection of Fees: The Bargaining Council will stop collecting contributions from legal owners or "rent-a-chairs," except for those who choose to remain part of the agreement for benefit purposes.
3.3. Enforcement: The Bargaining Council will not enforce the collective agreement or any part thereof, against legal owners or "rent-a-chairs."
4. Important Points for Industry:
4.1. The Bargaining Council retains its authority to enforce the main collective agreement for all employers and employees in the Industry. This enforcement ensures that businesses do not misclassify employees or avoid employer obligations.
5. Powers of Designated Agents:
5.1. Designated agents are empowered to monitor compliance, especially in light of the changes to the "legal owner" concept. Their job is to determine whether a true employment relationship exists, distinguishing between independent legal owners and businesses misclassifying workers to avoid employer responsibilities.
6. Agents have the power to:
6.1. Enter any workplace without notice to check for compliance with the agreement.
6.2. Request and collect information, either orally or in writing, and ask questions under oath.
6.3. Inspect records, ask questions about documents, and make copies or take documents for review.
6.4. Require individuals to produce or deliver records for inspection.
6.5. Examine equipment or materials at the workplace and ask questions about work performed.
6.6. This ensures businesses in the Industry are following the main collective agreement and that any misuse of the "legal owner" status is addressed.
Employers and employees operating within the Industry are urged to familiarise themselves with the provisions of the main collective agreement, the changes to the concept of “legal owners” and the power of Council Agents.
If you have questions or need further information, kindly contact the Council per email or landline below:
Email: info@hcsbc.co.za
Tel: 0861 427 227
PENSION FUND EXEMPTIONS
Please note that current exemptions expire on 31 December 2024, and invoices will be raised in accordance with the Collective Agreement for those establishments that did not apply for or were not granted exemption.
Please consult the Council’s WEBSITE for the contact details of Agents in your area.
For more information, contact: www.hcsbc.co.za
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