27/05/2025
Bonus Denial Based on Pending Disciplinary Charge – Legal in South Africa?
Question:
Is it legal for the company not to give an employee a yearly bonus just because he/she has a charge that is still pending, while other employees receive their bonus because they don't have any charges?
Answer:
In South Africa, bonuses are not automatically guaranteed by law — they depend on the terms of:
1. Employment contracts,
2. Company policies, or
3. Collective agreements (e.g., bargaining council rules).
However, fairness and consistency are required under the Labour Relations Act (LRA). Here's how this applies:
1. Is it legal to deny a bonus based on a pending charge?
Yes, it can be legal, only if:
- The company has a clear policy that says employees under investigation or with pending disciplinary charges are not eligible for bonuses.
- This policy is applied fairly and consistently to all employees.
But it may be unfair or even unlawful if:
- The rule is not in writing or not part of company policy.
- The policy is applied selectively or discriminatorily (e.g., targeting one person).
- The employee has not yet been found guilty, and the charge is simply pending for a long time.
2. What rights does the employee have?
- The employee can request the bonus policy or employment contract terms in writing.
- If there is no formal policy, the employee may challenge the decision as unfair labour practice under Section 186(2)(a) of the LRA.
- A complaint can be made at the CCMA.
Conclusion:
It is not automatically illegal, but it may be unfair depending on the circumstances, company policy, and whether consistent treatment is applied.
The best way is to know and understand the policy and the your employment contract 👌