You aren't legally entitled to an annual increase (and why your contract is key)

Most employees feel entitled to an annual increase, but what does the law say?

Employment law litigator Joe Mothibi says that annual increases are not a given unless otherwise stipulated in the job contract.

Read: Why the definition of unfair labour practice is very blurry

Mothibi, a director in ENSafrica's employment department, says increases are not a legal obligation if an escalation clause is does not stipulate such terms.

The escalation clause is a clause in a contract that allows for a rise in wages or prices under certain conditions.

Mothibi says that annual increases can be considered by employers every year, but they do not have to be implemented.

Also read: What is constructive dismissal? (and how to prove it)

There's no general obligation in law to give increases, but it depends on the facts.

Joe Mothibi, Head of ENSafrica's employment department

If they don't say anything in the contract about increases, then you are not entitled as of law to an increase.

Joe Mothibi, Head of ENSafrica's employment department

We are not all entitled to a salary increase. We have to look at a contractual arrangement that is applicable.

Joe Mothibi, Head of ENSafrica's employment department

He adds that employees are within their right to negotiate an individual increase in their employment contracts or use their collective bargaining power.

Mothibi discusses the legalities of employment contracts and how wage negotiations are structured.

Listen to the discussion during the World of Work feature:


This article first appeared on CapeTalk : You aren't legally entitled to an annual increase (and why your contract is key)


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