ARE COMMISSION EARNERS ENTITLED TO PAID LEAVE?

[Ivan Israelstam]

The Basic conditions of employment act provides that employees are entitles to paid annual leave, sick leave, family responsibility leave and parental leave. And the act does not exclude from this provision those employees hired on a commission only basis. As commissions, by their very nature, will normally vary in amount from month to month, on what basis does the employer calculate the rand value of the paid leave that such employees take? That is, are such employees entitled to paid leave and, if so, how is the leave pay calculation to be done for an employee who earns only a commission?

[Patrick Deale]

Yes a commission only employee is entitled to the statutory leave entitlements. This applies if he or she is a full time employee and not an independent contractor.

The leave periods are the same as employees with salaries. The calculation of leave pay can be based on the average commission earnings in the past 3 or 6 months.

[Michael Bagraim]

You need to calculate the commissions on the previous three months and on that basis you pay for the sick leave.

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