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Calculation example
| Salary |
N$ 560.00 per month
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| Food rations (in-kind) |
N$ 300.00 per month
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| Pension (Employer`s contribution) |
N$ 95.00 per month
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“Basic wage” for this employee is N$ 860.00 per month.
Employer`s Social Security Contribution is N$ 7-74 per month.
Employee`s Social Security Contribution is N$ 7-74 per month.
Normal hourly wage is 860 ÷ 4.333 ÷ 45 = N$ 4.41 per hour to be used as basis for overtime, Sunday and Public Holiday work and night allowance calculations.
Remuneration per day is 869 ÷ 4.333 ÷ 6 (6 day working week)= N$ 33.08 per day to be used as basis for calculation of accrued leave, notice pay in lieu of notice of termination.
Severance pay would be N$ 198.48 (one week`s remuneration) for every completed year of employment, subject to section 35 of the Act.
Representation of Employers during Statutory Arbitration
Section 86(12) of the Labour Act, 2007 provides that if the employer is an individual (natural person) such employer may appear in person (self) or by an office bearer or official of a registered employers` organisation.
Legal practitioners and labour consultants (firms) may not represent an employer, unless
• The employer and employee agreed that they may appoint representatives, or
• If the matter is complex and it would be appropriate that the employer be represented AND the employee will not be prejudiced (see section 140 which allow legal aid to an employee).
Employers` Organisations must be registered in terms of section 57(1) of the Labour Act, 2007 or in terms of section 54(1) of the Labour Act, 1992.
Labour Act, 2007 (Act 11 of 2007)
The Labour Act, 2007 came into for on 1 November 2008.
The implementation of section 128 (prohibition of labour hire service) is delayed by High Court order until the Supreme Court has ruled on the appeal matter pertaining to the validity of section 128.
The Rules relating to the Conduct of Conciliation and Arbitration came into force on 1 November 2008.
The Labour General Regulations came into force on 1 November 2008.
The Code of Good Practice has not been published (5 December 2008).
Severance Pay
Section 35 of the Labour Act, 2007 (Act 11 of 2007) regulates the payment of severance allowance.
Severance pay is payable to an employee who has been employed by the employer for longer than 12 months and when:
1. The employee was unfairly dismissed; or
2. The employee dies while being employed; or
3. The employee resigns after reaching the age of 65 years; or
4. The employee retires at 65 years of age or at the retirement age stipulated in the employment agreement or policies / practices of the employer; or
5. The employee retires at the retirement age stipulated by the Employer or on early retirement; or
6. The employee is dismissed due to incapacity as a result of injury or ill health of the employee (not medically fit to perform the work); or
7. The employer retrenched the employee.
Severance pay is not payable to the employee if:
1. The employee resigns; or
2. The employee is dismissed for misconduct or poor performance; or
3. The employer, after unfair dismissal or during the retrenchment process, offers reinstatement to the employee and the employee unreasonably refuses to accept reinstatement.
Severance pay is one week`s remuneration (basic salary and all allowances) for every completed year in the employment of the employer.
Temporary Employment
A temporary employment agreement or fixed-term agreement is an agreement that comes to an end due to lapse of time. The parties agree that the employment shall be for a period only, such as three months or two weeks or whatever the case may be.
Temporary employment is still a legal form of employment and not prohibited by the Labour Act, 2007.
The concept of “Casual Employees” is no longer provided for in the Labour Act, 2007 or in the Social Security Act, 1994 (Act 34 of 1994).
“Casual employees” must not be confused with temporary employees. Casual employee is a person who worked for a maximum of two days per week for the same employer.
Section 128 (Prohibition of Labour Hire Services)
The High Court of Namibia ruled on 1 December 2008 that that section is not un-Constitutional.
Section 128 will come into force on 1 March 2009 – Government Gazette 4192 dated 2 January 2009.
An appeal can be filed in this matter and can be done until mid January 2009. Usually it is within 14 court days however the days period does not run for a couple of weeks in December/January when the normal High Court proceedings are closed.
To determine whether a business is at risk, the original agreements between the parties (Outsourced Business / Labour Broker et cetera) must be reconsidered together with the method and purposes of the employment agreements, and then compared with section 128(1) ...
“No person may, for reward, employ any person with a view to making that person available to a third party to perform work for that third party.”
It would only be reasonable that this section would not come into force until the appeal judgment is made or until the time period for appeal expired.
Taking the impact on those business and the community in mind it would also be reasonable if the Ministry of Labour and Social Welfare give advance notice in the Government Gazatte of when (date) the section will come into force.
Pending Cases
All conciliation and arbitration cases will be subject to the Labour Act 2007.
Matter with District Labour Court case numbers or Labour Court case numbers will continue under the old Labour Act, 1992.
Conditions Subscription to www.namibia-law.com
The cost for subscribing is N$ 2 300.00 per year, January to December and is for access to the website. From case law, mostly Namibian Labour Court cases, to legislation and regulations are made available to users.
Access will be granted on received and cleared payments by cheque, electronic transfer or cash to Namibia-law.com. banking details available on request from support@namibia-law.com
The aim of www.namibia-law.com is to make Namibian Law available to the public for research purposes. Legislation is placed on the pages starting from 2008 working backwards towards 1990, plus all Labour Laws, inclusive of Namibian Labour Court cases and common law principles as time goes by.
Subscribers may forward e-mail to pieterdb@namibia-law.com requesting access to specific Namibian legislation since 1990, which will then be sourced and placed on the website within 7 working days of receipt of such e-mail.
The website is growing daily, and the first subscription period will be November 2008 to December 2009 at N$ 2 300.00. Annual subscription may be increased annually.
Reasonable steps are taken to ensure that the information found on the website are correct, however the subscriber acknowledges that if any information found on the www.namibia-law.com pages, and it is used for any action or decision which may have bearing on legal rights and obligations, the subscriber will have the duty and onus to obtain advise and assistance from a legal practitioner prior to taking any action or decision.
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Legal Compliance
The Financial World requires more and more adherence to strict rules. At times, it appears that the industry is over-regulating itself. The founding principles are to protect those who manages the finances of others and to protect those who make use of institutions to manage, invest or control funds. The bottom line is, compliance with the legislation are important and will be a significant part of Risk management in the future.
Adherence to employment legislation is just as important. The provisions of the Labour Act must be followed as part of the protection of the right of employees while the business interest of the employer must be balanced in the process. Affirmative Action legislation is just as important and compliance with it is, in fact legal compliance and risk management, with which the employer cannot do without.
Namibian Statutes currently on website
| Vocational Education and training |
Act 1 of 2008 |
Veterans |
Act 2 of 2008. |
General Labour Regulations |
2008. |
Rules of conciliation and arbitration |
2008 |
Financial Intelligence |
Act 3 of 2007. |
Electricity |
Act 4 of 2007 |
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Environmental Management
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Act 7 of 2007 |
Motor Vehicle Accident |
Act 10 of 2007 |
| Labour Act |
Act 11 of 2007 |
| Namibia Qualifications Authority Regulations |
Reg 2007 |
The State-Owned Enterprises |
Act 2 of 2006 |
Brigade Service |
Act 5 of 2006 |
Children`s Status |
Act 6 of 2006 |
Biosaftey |
Act 7 of 2006 |
National Youth Service |
Act 6 of 2005 |
Anti-Corruption |
Act 8 of 2003 |
Value added Tax |
10 of 2000 |
Short term Insurance |
Act 4 of 1998 |
Guidelines for implementation of national code on HIV/Aids in |
3-Apr-1998 |
Banking Institutions |
Act 2 of 1998 |
The Affirmative Action (Employment ) Act |
Act 29 of 1998 |
Married Persons Equality |
Act 1 of 1996 |
Mineral Development Fund |
Act 19 of 1996 |
Legal Practitioners |
Act 15 of 1995 |
Stock Brands |
Act 24 of 1995 |
Medical Aid Funds |
Act 23 of 1995 |
Labour Court Rules |
22-Apr-1994 |
National Vocational Training |
Act 18 of 1994 |
Social Security Act |
Act 34 of 1994 |
Immigration Control |
Act 7 of 1993 |
Rules of District Labour Court |
Act 6 of 1992 |
| Labour Act |
Act 6 of 1992 |
National Pension |
Act 10 of 1992 |
| Agronomic Industry |
Act 20 of 1992 |
Namibian Citizenship Special Conferment |
Act 14 of 1991 |
Racial Discrimination Prohibition |
Act 26 of 1991 |
Namibian Citizenship |
Act 14 of 1990 |
The Ombudsman |
Act 7 of 1990 |
Public Holidays |
Act 26 of 1996 |
Rents Ordinance |
Act of 1977 |
Proceedings (Provincial and Local Authorities ) |
Act 94 of 1970 |
Prescription |
Act 68 of 1968 |
Arbitration |
Act 42 of 1965 |
Pensions Fund |
Act of 1956 |
Diplomatic Privileges |
Act 71 of 1951 |
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