ASSIGNMENT 1 (SEMESTER 1)..
DUE DATE: March 2025..
PREVIEW:
QUESTION 1
Legal Opinion: Quantum Foods (Pty) Ltd v Commissioner H Jacobs N.O. and Others
Summary of the Facts
In the case of Quantum Foods (Pty) Ltd v Commissioner H Jacobs N.O. and Others, Quantum Foods sought
to align its employees' wages with the National Minimum Wage Act 9 of 2018 (NMWA). To achieve this,
the company restructured its payslips to include a contractual bonus and the employer's contributions
to a provident fund, aiming to meet the minimum wage requirements. The contractual bonus could be
received either annually or as part of monthly payments, based on the employee's preference. However,
the union representing the employees contested this approach, arguing that such payments should be
excluded when calculating the minimum wage under section 5 of the NMWA. This dispute was escalated
to the Commission for Conciliation, Mediation and Arbitration (CCMA) for resolution.
Issues in Dispute
The primary issue was whether Quantum Foods was entitled to include the contractual bonus and
provident fund contributions in the calculation of employees' wages to satisfy the national minimum
wage requirements. Specifically, the dispute centered on whether these payments should be excluded
under section 5(1)(c) of the NMWA, which pertains to the exclusion of certain payments
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