Local Government, Environmental Affairs and Development Planning
Question by:
Hon Deidré Baartman
Answered by:
Hon Anton Bredell
Question Number:
8
Question Body:
- Whether the Laingsburg Municipality Municipal Manager, whose name has been furnished to his Department for the purpose of his reply, is entitled to a performance bonus in terms of his appointment contract; if so, what is the percentage of the performance bonus that he is entitled to in terms of his contract;
- whether any performance agreement has been signed between the Municipal Manager and the Laingsburg Municipality that sets out the criteria for the awarding of a performance bonus; if not, what are the legal implications if there is no performance agreement that was signed between the Municipal Manager and the Laingsburg Municipality;
- whether the Laingsburg Municipality is legally obligated to award the full performance bonus; if not, what are the criteria that Laingsburg Municipality must employ to evaluate whether its Municipal Manager is entitled to be awarded a performance bonus?
Answer Body:
- The Municipal Manager’s employment contract contains provisions for the incumbent to receive an annual non-pensionable performance bonus in terms of Regulation 32 of the Performance Regulations, to a maximum of 14% of the total remuneration. Regulation 32(2) of the Performance Regulations stipulates a performance bonus ranging from 5% to 14% of the all-inclusive remuneration package may be paid to an employee in recognition of outstanding performance.
(2) and (3) A performance agreement has been entered into between the Municipality and incumbent for the 2020/21 financial year however it contains a provision that stipulates that by “mutual agreement the Parties have decided that no performance bonus will be paid to the Employee as the Employee's total cost of employment package is deemed to be adequate”. It would therefore not be permissible for the Municipality to award the incumbent a performance bonus.
Date:
Friday, February 26, 2021
