Some rabbit holes are worth going down!
That’s what I said to a client when we completed an in-depth conversation stemming from her question about whether it was acceptable to take disciplinary action against a staff member who disclosed their salary to another employee, especially since the employee’s contract of employment clearly stated that the employee’s remuneration must remain confidential between the employee and the company.
The discussion sparked a deep dive into legislation and a vital aspect of modern human resources management: pay transparency. Here’s a recap of our enlightening discussion:
Can an employee disclose their salary to their fellow employees?
Deep within the Basic Conditions of Employment Act (BCEA) lies a provision that often escapes notice, yet swiftly captures the attention of discerning business leaders when uncovered. Section 78(1)(b) boldly declares: “Every employee has the right to discuss their conditions of employment with fellow employees, their employer, or any other person.” As remuneration inherently constitutes a vital aspect of employment terms, it’s also crucial to recognize that the term “employee” in this context includes former employees and job applicants as well. Therefore, the BCEA affirms an employee’s prerogative to divulge their salary to fellow employees or any other individual.
Can an employee be disciplined for discussing their salary with others?
Section 79(2)(ii) of the BCEA safeguards employees from adverse repercussions for disclosing their employment conditions. This provision prohibits employers from imposing disciplinary measures on employees who share their salary information with others, as it is a fundamental right afforded to them. However, it’s imperative to emphasize that such disclosure should be conducted honestly and in good faith. If an employee resorts to fabricating their salary or threatens to disclose it to manipulate the situation for personal gain, they could forfeit protection under this section, and appropriate action can be taken against them. Additionally, disclosing confidential information to competitors, which may jeopardize the company’s interests, is off the table.
What if the employee has agreed not to disclose their salary through a clause in their Contract of Employment?
Considering the above, it’s important to note that any clause within an employment contract that prohibits employees from disclosing their terms and conditions of employment to others, directly contravenes the provisions of the BCEA and holds no enforceability.
Can an employee share other employee’s salaries?
No, the provision solely permits employees to disclose their own terms and conditions of employment, not those of their colleagues. Therefore, if a fellow employee chooses to share their employment details with you, it does not grant you the right to disseminate this information to others; it remains their prerogative to share, not yours.
What is the purpose of employees being able to share their salary with others?
The most likely purpose is to uphold constitutional principles of fair labor practices, foster workplace transparency and empowerment, and tackle inequities and discrimination in salary practices.
In just five straightforward questions, we’ve traversed from the fundamental legal right to disclose employment conditions—a concept both easy to grasp and long-established—to the broader organizational and societal principle of pay transparency.
Pay transparency has emerged as a prominent topic for HR and leadership teams in recent years, showing no signs of fading away. It’s a complex concept deserving of dedicated attention, which is why I’m providing a reference to one of HiBob’s comprehensive guides on the subject – https://www.hibob.com/guides/pay-transparency/ . This resource offers an exploration into pay transparency on a global basis, providing insights into crucial questions and practical guidelines.
For leadership teams keen on exploring the concept and benefits of pay transparency further, I echo the advice of Sarah Reynolds, HiBob’s CMO, shared in a recent interview: “First, define your pay philosophy. Then, gather relevant data. Finally, determine the appropriate level of transparency for your organization.”.
Interested in delving deeper? Connect with Terrex today!
Looking forward to our next conversation
Keith Magill
Empowering your business through innovative human capital strategies
