How does the Covid-19 lockdown effect your employees’ salaries?

How does the Covid-19 lockdown effect your employees’ salaries?

The global outbreak of Covid-19 has steered the world’s economy into unchartered territory. The President’s lockdown-announcement last night confronts the South African economy directly with this stark reality.

‘No work, no pay’
This is the legal principle which will apply throughout the lockdown. Although some employers may be in a financial position to deviate from this principle, they must do so taking into consideration the long-term sustainability of their businesses.

What if the lockdown is in excess of three weeks?

Although there is currently no indication that this will be the case, companies making a decision in respect payment of employees must calculate an extended lockdown period into the equation.

Business must reserve its capabilities in order to remain sustainable for a protracted period – the fight against the spread of Covid-19 and the long-term survival of business may turn out to be a

“WAR OF ATTRITION” In the absence of the appropriate government gazettes detailing UIF and other potential forms of aid to business, and by implication their employees, business should not make any salary commitments to their employees.

NEASA will immediately communicate all relevant developments with appropriate advice throughout.

For any assistance call the NEASA Hotline on 086 016 3272 or send an email to legalhotline@neasa.co.za

How does the Covid-19 lockdown effect your employees’ salaries?

Implications of nation-wide lockdown

On 23 March 2020 President Cyril Ramaphosa announced that the National Coronavirus Command Council has decided to enforce a nation-wide lockdown for 21 days with effect from midnight on Thursday 26 March 2020 to midnight on Thursday 16 April 2020.  

This means that all South Africans will have to stay at home.  There are however categories of people who will be exempted from this lockdown.  This include, amongst others, people involved in the production, distribution and supply of food, as well as supermarkets.

Read more at https://sacoronavirus.co.za/ and see the full statement by President Cyril Ramaphosa.

This decision should be seen against the backdrop that the number of COVID-19 cases has escalated from 160,000 to over 340,000 confirmed cases across the world.  In South Africa, the number of confirmed cases has increased six-fold in just eight days from 61 cases to 402 cases.  According to the President, the nation-wide lockdown will be enacted in terms of the Disaster Management Act and will entail the following: 

  • From midnight on Thursday 26 March 2020 until midnight on Thursday 16 April 2020, all South Africans will have to stay at home. 
  • The categories of people who will be exempted from this lockdown are the following: health workers in the public and private sectors, emergency personnel, those in security services – such as the police, traffic officers, military medical personnel, soldiers – and other persons necessary for our response to the pandemic. It will also include those involved in the production, distribution and supply of food and basic goods, essential banking services, the maintenance of power, water and telecommunications services, laboratory services, and the provision of medical and hygiene products. A full list of essential personnel will be published. 
  • Individuals will not be allowed to leave their homes except under strictly controlled circumstances, such as to seek medical care, buy food, medicine and other supplies or collect a social grant. 
  • Temporary shelters that meet the necessary hygiene standards will be identified for homeless people. Sites are also being identified for quarantine and self-isolation for people who cannot self-isolate at home. 
  • All shops and businesses will be closed, except for pharmacies, laboratories, banks, essential financial and payment services, including the JSE, supermarkets, petrol stations and health care providers. 
  • Companies that are essential to the production and transportation of food, basic goods and medical supplies will remain open. 

A full list of the categories of businesses that should remain open will be published shortly.

Agri SA’s tips for safe conduct is available in different languages at the following links:
Agri SA’s tips for safe workplaces during COVID-19 SWATI (1)
Agri SA’s tips for safe workplaces during COVID-19 XHOSA
Agri SA’s tips for safe workplaces during COVID-19_V1 AFR
Agri SA’s tips for safe workplaces during COVID-19_V1 isiZULU
Agri SA’s tips for safe workplaces during COVID-19_V1 SOTHO
Agri SA’s tips for safe workplaces during COVID-19_V1 Tshivenda
Agri SA’s tips for safe workplaces during COVID-19_V1 TSWANA
Agri SA’s tips for safe workplaces during COVID-19_V1