There is a misconception that bonuses are effected at the employer’s discretion and not compulsory. Most employers prefer to give bonuses subject to the employees’ performance and the business financial stability.
In terms of Clause 6.1 of the MIBCO Main Collective Agreement; employees excluding motor vehicles salesperson and supply salespersons for whom additional holiday pay is not prescribed in the terms of this Agreement who qualifies for paid annual leave shall be paid a holiday bonus by their employer to the amount of two weeks’ wages, with a maximum payment of R4,856.40 per annum;
Motor vehicles salesperson and supply salespersons are not eligible to receive bonuses by virtue of the fact that they earn commission.
Payment of bonuses should become due and payable on completion of 12 months service.
In a Nutshell: Payment of bonuses is compulsory and regulated by the Industry Agreements and prescribed to all employees except vehicle salespersons and supply salespersons.