Can my employer claim a deduction against my provident fund?


Question:

Please advise if it is lawful for my employer to deduct skills development money from my provident fund.I have been employed for 31 months & tge company paid about R30 000 for my studies. I haven't signed any agreement with them that I am going to work for a certain period after I complete my certificate course, they just called me and asked if I want to study I said yes & sent them the invoice they paid.Now that I am resigning I am advised that they are going to take all their money from my provident fund & from my salary & leave pay. she said I am not gonna get anything in my account come pay day as I owe them.PLEASE HELP

Answer:

Dipuo, Your employer cannot claim a deduction against your provident fund if you have not signed some form of a written acknowledgement of debt. You may have done so inadvertently, but if they cannot provide this proof, then the provident fund administrator cannot give effect to their claim. If they do so anyway, you must lodge a written complaint with them, and if they do not respond satisfactorily, then you can lodge a complaint with the Pension Funds Adjudicator. As for the deductions against your pay and leave pay, this is probably governed by similar rules, but we are not labour law experts. You would probably have to challenge that with the CCMA. Have you checked your terms of employment? These may permit the employer to make these deductions.

The information and answers supplied in this section do not constitute advice as defined by the Financial Advisory and Intermediary Services Act, 37 of 2002.


Get investment and saving tips straight to your inbox.

Related FAQ

How do I top up my TFSA using My10X?

You can make a top-up to your 10X investment on our member portal, My10X. To access My10X visit...

Related FAQ

How do I top up my RA using My10X?

You can make a top-up to your 10X investment on our member portal, My10X. To access My10X visit http...

Calculator

How much do I need?

We can help you plan your future. Use our calculator to see if you are on track for a comfortable retirement.

RA Calculator

Get started or switch to 10X today.