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wef 1 July 2016

Dear Industry Employer

The extension period of the Administration and Expenses Agreement of the Metal and Engineering Industries Bargaining Council (MEIBC) expires on 30 June 2016.

The effect of this is that the Administration and Dispute Levies are, with effect from this date, no longer payable by employers or employees who are not party to the Agreement.

Unless you are in some way affiliated to SEIFSA (which signed this agreement, whose extension is currently the subject of litigation in the Labour Court), you are no longer obligated to pay these levies to the Council and are legally not allowed to deduct the Admin and Dispute levies from the wages of your employees. Employers who continue to deduct and pay over these levies after 1 July 2016, may be liable for claims of unlawful deductions from their employees.

This state of affairs will remain unless the Minister of Labour re-extends the Agreement to non-parties at a later stage.

NEASA will keep employers abreast of developments in this regard.

Kind regards