A number of our security clients recently received correspondence from SALT, the administrator of the Private Security Sector Provident Fund. The correspondence was issued under the heading “NOTIFICATION TO AND REQUEST FOR INFORMATION FROM THE EMPLOYER BY PENSION FUND”
Security Officers, falling within the ambit of the Main Collective Agreement of the National Bargaining Council for the Private Security Sector automatically becomes members of the Private Security Sector Provident fund, merely by virtue of their employment within the Sector.
This obligation may not be applicable to various security officers such as in-house security officers as well as learners. Employers should verify the status of security officers in the service by obtaining proper legal advice.
Employees of affected security officers are subject to various duties, obligations and liabilities in respect of these obligations, for instance, that the employers must deduct Provident Fund contributions from the wages of affected security officers and pay both the contributions by security officers as well as the Security Service provider over to the Provident Fund to reflect in the Provident Fund’s bank account, not later than 7 days after the end of the month for which the contributions was payable. Employers are similarly also obliged to submit a return for all of these contributions to the fund by no later than 15 days after the end of the month in respect of which the payment was made.
Non-compliance with these obligations may result in the following:
- Security officers or the administrator of the fund my report the employer’s non-compliance to the pension fund adjudicator who’s determination will have the same force and effect as that of a court order. Complaints to the Provident Fund Adjudicator must be forwarded to our offices as a matter of urgency in order to prevent such orders being granted in default.
- The non-compliance must be reported by the board or the fund of the Financial Sector Conduct Authority as well as the South African Police Services.
- Persons in control, or regularly involved in the financial operations of the employer, shall be held personally liable for any non-compliance with these provisions.
- Any person that fails to comply with these provisions will also be guilty of an offence and may be liable, upon conviction, to a fine of maximum 10 Million Rand and/or to imprisonment for a period of not more than 10 years.
- The NBCPSS may also issue a compliance order against defaulting security firms. Please click here for advice on how to deal with compliance orders.
The Private Security Industry is subject to a complicated and strict compliance framework with far reaching consequences in the event of non-compliance. Contact us for more information on how to successfully navigate this compliance landscape.
Also read: The function of the NBCPSS within the Private Security Sector
