Urgent Alert: Moratorium on Leave Encashment
We need to immediately address the SABC’s recent “Announcement of Indefinite Moratorium on Leave Encashment,” which is set to take effect on 30 October 2025.
The SABC has announced its decision to discontinue the encashment of accumulative leave, citing its current financial position.
It acknowledges that as recently as December 2023, during wage negotiations, the annual encashment benefit was increased from 7 to 10 days.
The SABC is now encouraging employees to take their accumulated leave instead of cashing it out.
BEMAWU’s Position & Legal Advice
This announcement is of serious concern. Here is our initial assessment:
Unilateral Change to Conditions of Service
Leave encashment is a term and condition of employment.
The SABC’s own announcement confirms this benefit was part of wage negotiations. A benefit that is negotiated collectively cannot be unilaterally withdrawn by the employer, even by citing financial difficulty.
The SABC is obligated to consult and negotiate with BEMAWU before implementing such a change.
Unfair Labour Practice
Under the Labour Relations Act 66 of 1995, an employer’s unilateral change to a condition of employment can constitute an unfair labour practice. This gives BEMAWU and our members grounds to formally dispute the decision.
Financial Hardship vs. Employee Rights
While we are aware of the SABC’s financial challenges, these difficulties do not give the corporation the right to bypass established collective bargaining structures and legal principles. The financial well-being of the SABC cannot be secured by unfairly eroding the negotiated benefits and rights of its employees.
What You Should Do
• This is an announcement of an intended action. BEMAWU will formally engage SABC management on this matter immediately.
• Keep records. Ensure you have a clear record of your accumulated leave days.
• We will communicate with our members on the formal steps we are taking to challenge this decision and will advise you on any collective action.
Please feel free to ask any specific questions you have about this or any other matter.
We are here to protect and advance your rights.
A BLAST FROM THE PAST!
This summary outlines a plenary meeting held between SABC Management and Organised Labour (BEMAWU) from 11-14 November 2013, to address several unresolved policy and practice disputes, mainly stemming from substantive issues raised in Salary and Substantive negotiations which by agreement was to be addressed in the plenary meetings.
The discussion around leave encashment was a significant agenda item within this formal policy review context.
Main Issue
Dispute Over Leave Encashment Conditions
A central topic of the meeting was the recent upliftment of the moratorium on leave encashment.
Labour’s grievance was not with the decision to allow leave encashment again, but rather with the unilateral imposition of new conditions without any consultation.
The primary objection was to the new rule that payment for encashed leave would only be made at the end of the month. This was a departure from the previous “best practice” where payouts were processed more frequently on Tuesdays and Thursdays.
Labour’s Rationale
It was argued that employees encashed leave because they needed funds urgently and could not wait until the month’s end for payment. Labour viewed the unilateral change as a breach of contract and practice.
Management’s Response
Management initially defended the decision by stating the policy did not specify exact payout dates. They later explained that the decision to lift the moratorium was made by the Board and that the change to monthly payments was an automatic function of the SAP system implemented in 2007.
Following significant pressure, management committed to taking the request to revert to the old practice, back to their principals for reconsideration.
Second Major Issue
Pre-Tax on Bonuses
Another critical point of conflict was the issue of pre-tax deductions on bonuses, which severely damaged the trust between the parties.
Labour’s Demand
Labour insisted that employees should receive their full bonus untaxed at the end of the year, in line with individual agreements where extra tax is deducted monthly to cover the liability.
Conflict Over SARS Opinion
Labour expressed extreme frustration over management’s long delay in providing a formal opinion from the South African Revenue Service (SARS) on the matter. Management maintained that they had requested the opinion on October 25, 2013, and were still awaiting a response.
Breakdown of Trust
The situation escalated when Labour revealed they had contacted SARS directly and were informed that feedback had already been provided to the SABC.
To prove this, BEMAWU played a recording of a conversation with a SARS representative who confirmed the practice was permissible.
This led to accusations that management, specifically Mr. Yunus, had lied to the plenary.
Labour also raised a serious complaint that the SABC had improperly used the SARS logo on an internal document, calling the act misleading and fraudulent.
Summary of Other Issues and Meeting Outcome
The disputes over leave and bonuses occurred alongside other unresolved matters, including:
Salary Anomalies
Labour demanded a cost breakdown for employees omitted from a salary correction process and asked when the second phase would begin.
Restructuring
A request for Labour to meet with the SABC Board regarding the company’s turnaround strategy remained unanswered.
The culmination of these issues, particularly the revelation regarding the SARS opinion, led Labour to declare a vote of no confidence in management representatives Messrs Yunus and Van Staden, citing misrepresentation and union bashing.
They demanded the immediate and permanent removal of the two individuals from the plenary.
Management refused this demand, resulting in a stalemate.
The meeting was effectively stood down, with Labour agreeing to work independently on policies while awaiting a meeting with the Group Executive of Human Capital Services to resolve the impasse.
EXTRACTED FROM FULL MINUTES AND AUDIO RECORDINGS