Bargaining Council Update: Registration of Establishments - Optional? (No)

To join or not to join the Bargaining Council? This is a point that comes up frequently in discussions on salon management and compliance and there seems to be a wide variety of opinions with some possible misinformation that are being circulated. The Bargaining Council has provided some very good information below on the ins and outs and legalities of registration with the Council. If you are an employer, salon owner, legal owner, rent-a-chair or employee in this industry, this is important material relevant to you.

COLLECTIVE AGREEMENT: REGISTRATION OF AN ESTABLISHMENT AND REGISTRATION OF EMPLOYEES

The Council is continuing to receive feedback that indicates that some Employers and Employees believe that registration with the Council is voluntary or optional. The following points are provided to assist in this regard:

In terms of the Main Collective Agreement, prior to the commencement of the rendering of Cosmetology Services at an Establishment, every Employer or the Legal Owner of an Establishment must apply to the Council in the form specified in Annexure “A” for registration of the Establishment and shall, as part of the registration process, also submit a duly completed Annexure “B” in respect of all Employees employed at the Establishment. (Annexures A and B may be downloaded from the Council’s website www.hcsbc.co.za. Alternatively, kindly contact your Agent or Council Offices).
A separate application shall be completed in respect of each Establishment operated by an Employer.
In the event of an Employee (including a Learner or a Student) taking up employment with an Establishment, subsequent to the registration of the Establishment, the Employer shall, on or before the seventh day of the month following such appointment, notify the Council of such Employee’s appointment, by submitting a duly completed Annexure “B”. These documents can be submitted to: accounts@hcsbc.co.za.
In the event of an Employee (including a Learner or a Student) resigning from an Establishment, the Employer shall, on or before the seventh day of the month following such resignation, notify the Council of such Employee’s resignation, by dispatching a written notice of such Employee’s resignation which notification shall include the Employee’s full names, surname, identity number, position held and last working day to amend@hcsbc.co.za
Membership of the HBSI Pension Fund is mandatory for all employees in the industry, except casual employees. Should the Employer already have a pension fund for employees, it may apply for an exemption. However, such pension fund should have equal or greater benefits than the Council’s pension fund (the HBSI).
The failure by an Employer to pay over Pension Fund contributions, deducted from Employees, to the Pension Fund, is a criminal offence.