Employing family members on the farm

Employing a family member may feel less formal, but employers should treat the employment relationship with the same professionalism as any other. In these cases, the employer is not exempt from complying with applicable labour legislation. Common problems that arise include the following:

Employment contract

The employment contract forms the basis of the relationship and sets out the terms and conditions of employment. The contract should be in writing and preferably be discussed with the employee and signed before work commences. The written contract should include the applicable terms and conditions of employment:

• Full name and address of the employer.
• Name and occupation of the farm worker.
• Place of work and where the employee is required to work.
• Date on which employment commenced.
• Employee’s ordinary hours and days of work.
• Information setting out the employee’s remuneration, deductions and how frequently remuneration will be paid.
• Leave entitlements.
• Notice period for termination of employment or, in the case of a fixed-term contract, the termination date.

Minimum wage

An employer must pay a family member who is employed at least the applicable minimum wage prescribed under the National Minimum Wage Act, 2018 (Act 9 of 2018). An employer and employee cannot simply agree that the employee will be paid less than the prescribed minimum wage because he or she is a family member or because the employer is providing the employee with an employment opportunity.

Employers should verify the applicable minimum wage whenever they review remuneration, as the prescribed rate may be adjusted annually.

Payslips

Employees must receive a payslip each payday, as it provides an important record of their remuneration and hours worked. The payslip should contain the information required by Sectoral Determination 13: Agricultural Sector, including:

• Name and address of the employer.
• Name and occupation of the farm worker.
• Period of payment.
• Farm worker’s wage and overtime rate.
• Number of normal hours, overtime hours, Sunday hours and public holiday hours worked during that period.
• Details of any deductions.

Unemployment insurance fund

Qualifying employees must be registered with the Unemployment Insurance Fund (UIF). An employer and employee cannot simply agree that an employee will not be registered where registration is required.

Employees who work more than 24 hours per month must be registered for UIF as soon as employment commences. The employee contributes 1% of the employee’s salary, and the employer contributes a further 1%, up to the maximum ceiling amount applicable to UIF deductions. The employer must deduct the required amount from the employee’s salary and pay the contributions to the UIF monthly.

Occupational injuries and diseases

The Compensation for Occupational Injuries and Diseases Act, 1993 (Act 130 of 1993), or COIDA, provides for compensation for disablement resulting from injuries sustained or diseases contracted by employees in the course of their employment. COIDA applies to employers and to casual and full-time employees. Employers cannot assume that a family member who works for them can simply be excluded from the usual employment-related processes because of the family relationship. – Anneline Scriven, senior legal advisor, LWO Employers Organisation