In South Africa, withholding an employee’s salary as a form of discipline or punishment is unlawful in most circumstances.
Basic Conditions of Employment Act (BCEA), Section 34
An employer may not make any deductions from an employee’s remuneration unless:
1. The employee has agreed in writing, or
2. The deduction is required or permitted by law, or
3. A court order authorises it.
Salary cannot be withheld because:
- You arrived late
- You made a mistake at work
- You failed to meet targets
- You are being “disciplined”
- You are being investigated
Common illegal practices by employers
– “We’re holding your salary until the disciplinary hearing is done”
– “You’ll get paid once you fix the mistake”
– “We deducted money because you caused a loss” (without written consent)
– “No work, no pay” used incorrectly All of the above are generally unlawful.
According to the BEA
An employer may not make any deduction from an employee’s remuneration unless the employee has agreed in writing or the deduction is required/permitted by law, a collective agreement, a court order or an arbitration award.
If deductions are made to reimburse an employer for loss or damage caused by the employee, there are strict limits and conditions (including fair procedure and a cap of 25 % of remuneration).
If an employee commits misconduct, the employer must:
- Follow fair disciplinary procedures
- Hold a disciplinary hearing
- Apply appropriate sanctions (warning, suspension, dismissal if justified)
Salary withholding is NOT a disciplinary sanction recognised by labour law.
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