Question: I worked for an organisation, as General Manager, that has severe financial difficulties. After a lot of unpleasantness I resigned on 23rd Feb 2009 giving 3 months notice as per my contract of employment. My resignation was accepted in writing. I was told that there was no need to report to work during my notice.

As the company had a serious cash flow issue, I agreed that they could pay me my salary as it became due each month. This was agreed in writing. At this time it was alleged by the company that the finance dept had incorrectly structured my package and that the CTC figure in my employment contract was exceeded. They also allege that I was aware of the discrepancy but did not report it to the Board.
My salary was not paid as due this past Friday. I phoned the financial manager and was told that he had been instructed not to pay me. I phoned the
responsible board member who informed me that I should have received a letter stating that they are withholding my salary as I have been overpaid.
I am now in the position that I cannot pay any of my bills including medical aid, phone, rent, food etc.

I have a wife and 2 children to support. My messages left for the Chairman remain unanswered.

Do they have the right to withhold my Salary? My understanding is that if they feel they have a case they need to institute civil proceedings. I would like to be able to pay for advice but currently do not have two pennies to rub together!

Answer: Quite correctly they may not willfully withhold salary payment and if in the event of an “overpayment”, they would have to reclaim such monies via civil action. The law clearly states that no deductions from a salary may be made without a signed written consent form the employee, this includes the GM. It is obvious that they are in dire financial straits and your recourse is an immediate lodging of a complaint of non-payment of salary to the Department of Labour. The CCMA does not deal with salary issues. Surprisingly, the Dept is fairly efficient and I suggest that when you call you ask for a senior Labour Inspector. The Dept has amazingly strong powers and can shut down any business with immediate effect if a full investigation into irregularities is required. You have a strong case as you have written agreements with the Board. Equally, I would also suggest that you contact someone in seniority in the Company and simply inform them that if your salary is not paid, say within 3 working days, you will be lodging a full scale investigation via senior members of the Dept of Labour. However, don’t wait the 3 days, report the matter as advised.

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