24/7 National Hotline: 0860 163 272 info@neasa.co.za




Position unchanged
Only SEIFSA affiliates liable to pay
Admin- and Dispute levies


Dear Industry Employer

The MEIBC, on 22 March 2017, issued a circular in response to a NEASA newsletter dated 13 March 2017.

The core of the circular by the MEIBC is that, according to the MEIBC, NEASA is incorrect to state that “…NEASA members and all other non-parties are, consequently, still not obligated or allowed to deduct and pay over Administration- and Dispute levies to the MEIBC (and) any non-party who has continued to make these payments since 1 July 2016 must cease to do so immediately, as the deductions and payments are unlawful, and claim their payments back from the Council”.

This averment by the Council is apparently made in light of the fact that the Court did not consider this issue.

The Council, conveniently, neglects to inform the Industry that the situation, as correctly stated by NEASA above, has been the position since the expiry of the Agreement on 1 July 2016. The reason that the Court did not deal with the issue is because the issue was never before the Court to consider as there was no dispute surrounding this fact. This, however, has absolutely no bearing on the fact that the Agreement remains non-binding on ALL non-parties.

A non-party in this context includes all NEASA and PCASA members as well as ALL other employers who are not signatories to the Agreement. Therefore, the only employers bound by the Agreement are those who are members of the employers’ organisations affiliated to SEIFSA.

The entire purpose of the review application was to prevent the extension of the unlawful Registration and Administration Expenses Agreement to ALL non-parties and not only NEASA and PCASA members. Had the Agreement been extended, then, and only then, would ALL non-parties have been obligated or entitled to deduct and pay over Administration- and Dispute levies.

It is trite law that, in the absence of an Agreement, as is the case here, an employer may not make any deductions from the wages of an employee.

The Council clearly and deliberately attempts to mislead the non-parties, who are not members of NEASA and PCASA, to contravene the prevailing legislation and, by doing so, act unlawfully.

The fact is that the Council, by its own admission, has been using these ill-begotten gains in order to run the organisation. This despite the fact that the Council knows full well that these levies have been collected unlawfully and with no regard for the liability it creates for the employers who unknowingly continues to make these deductions and payments.

The statement made by the MEIBC in its circular is patently false and incorrect.

We reiterate that ALL non-parties who have continued to make deductions and pay Administration – and Dispute levies since 1 July 2016, must cease to do so immediately and claim back all payments made in this regard.

Non-members who wish to enquire about this may contact the relevant NEASA regional office or contact our hotline on 08601 NEASA (08601 63272).

Kind Regards