The National Minimum Wage Act mandates minimum wages for all workers. However, employers or employers’ organizations have the option to apply for exemptions under certain circumstances. This guide provides a straightforward approach to applying for National Minimum Wage exemption, outlining the necessary steps and information required.
The exemption process is governed by the Act and its Regulations, which detail the criteria, obligations, and timelines for making exemption applications. Here’s a step-by-step guide to navigate through the process seamlessly.
1. Online Application through National Minimum Wage System
Initiate the exemption process by lodging an online application through the National Minimum Wage system. The system will guide you through the procedures, ensuring a smooth submission. To start the process, provide the following essential information prompted by the system:
For Businesses:
Most Recent Annual Financial Statements
Include the statement of financial performance (Income Statement) for the current year predictions and the two previous years. Also, submit the statement of financial position (Balance Sheet).
For Private Households:
Statement of Financial Performance
Include the Income Statement for the last year.
Employees’ Working Hours and Wage Information
Clearly outline the working hours and wage information for affected employees.
Proof of Consultation
Demonstrate that you have consulted with every representative trade union. If no such union exists, provide evidence of consultation with the affected workers concerned.
2. Download Application and Distribute Copies
After completing the online application, download a copy and distribute it as follows:
Bargaining Council
Submit a copy of the application to the relevant Bargaining Council.
Union
Provide a copy to the representative union.
Affected Workers
Ensure affected workers receive a copy of the application.
3. Granting of Exemption
If your application is granted, take the following steps:
Display Certificate
Display a copy of the exemption certificate prominently at the workplace.
Inform Relevant Parties
Provide copies of the exemption certificate to the Bargaining Council, representative union, and any workers who request a copy.
By following these steps diligently, you can navigate the National Minimum Wage exemption process efficiently, ensuring compliance with the Act and Regulations. This streamlined approach simplifies the application process, allowing employers to fulfill their obligations seamlessly.