It is reportedly commonplace for employers to effect deductions from the wages of domestic workers for loss / damage caused by the domestic worker.

Notwithstanding the above, in terms of the sectoral determination it is impermissible for employers to deduct damages or loss cause by a domestic worker from his/her wages. In this regard, the sectoral determination contains a closed list of deductions which does not include deductions for loss / damages.

The provisions of the National Minimum Wage Act, however, create the impression that such deductions are nevertheless permitted. This is so because:

• the National Minimum Wage Act specifically permits deductions from ‘remuneration’ provided that they are in compliance with section 34 of the Basic Conditions of Employment Act; and

• the Basic Conditions of Employment Act, in turn, permits a deduction for damage or loss caused by an employee.

The apparent contradiction between the National Minimum Wage Act (which permits such deductions in accordance with the Basic Conditions of Employment Act) and the sectoral determination applicable to domestic workers (which prohibits such deductions) can be resolved with reference to section 57 of the Basic Conditions of Employment Act which provides as follows:

“If a matter regulated in this Act is also regulated in terms of a sectoral determination, the provision in the sectoral determination prevails”.

Consequently, notwithstanding the provisions of the National Minimum Wage Act, it remains impermissible to deduct amounts for damages / loss from a domestic worker’s remuneration as a result of the sectoral determination.

Employers should therefore treat loss or damage caused by the negligence of domestic workers as disciplinary infractions. Verbal warnings or written warnings should be issued.  If necessary, domestic workers can be dismissed if the loss or damage is persistent or if a single incident of loss or damage is so serious to cause a breakdown of the trust and working relationship.

If, notwithstanding the abovementioned advice, employers insist on effecting such deductions, then at the very least they should ensure that the requirements referred to in the Basic Conditions of Employment Act are complied with in relation to deductions. These requirements include the following:

• a deduction can only be made if the loss or damage occurred in the course of employment and must be due to the fault of the employee;

• the employer must give the employee a reasonable opportunity to show why the deductions should not be made;

• the total amount deducted must not exceed the total amount of the loss or damage; and

• the amount deducted each month should not exceed one quarter of the employee’s remuneration.