There has been some confusion regarding their classification under labour regulations, particularly in certain packhouses and processing facilities. The key question is whether a business falls under agricultural regulations, specifically Sectoral Determination 13 (SD13), or is governed solely by the Basic Conditions of Employment Act (BCEA). Understanding this distinction is crucial, as it affects the overtime hours a business can implement. For example, SD13 allows for overtime limits different from those of BCEA.
To clarify this matter, the SIZA Audit Reference Group has determined that auditors must assess any credible evidence demonstrating that a packhouse operates within the agricultural scope. Such evidence may include:
- Previous variation applications from the Department of Employment and Labour.
- Inspection documents from the Department of Employment and Labour.
- Demarcation status confirmation by the Department of Employment and Labour.
- Zoning certificates.
If the packhouse’s classification is uncertain, they must provide proof. However, auditors cannot make a determination without sufficient consultation and supporting evidence.
SIZA has expanded the Self-Assessment Questionnaire (SAQ) to streamline this process and include a section where businesses can upload relevant proof. This ensures auditors have access to necessary documentation during audits, preventing unnecessary delays or misclassifications on the day of the audit.
If you have any questions regarding this matter, please get in touch with the SIZA office or email werner@siza.co.za.
