TSC Revised T-Pay Guidelines for All Third Party Deductions
1. INTRODUCTION
1.1 Establishment
The Teachers Service Commission (TSC) operates under Article 237 (1) of the Constitution, with its mandates specified in Article 237 (2), including teacher registration and employment in public schools/institutions. The Commission’s operations are governed by the Teachers Service Commission Act No. 20 of 2012.
1.2 Powers and Functions
Under the Act, the Commission is authorized to formulate policies, provide strategic direction, oversee the secretariat, manage employee payroll, and execute other necessary functions.
1.3 Legal Context
Additionally, the Empowerment Act and the Labour Relations Act require the Commission to maintain positive industrial relations with employees and stakeholders, fostering sound labour relations.
1.4 Review and Development
In 2014, the Commission established guidelines for managing the payroll check-off facility. These guidelines, in use for six years, are due for review to address emerging issues, including the adoption of the T-Pay platform.
2. DEFINITIONS OF TERMS
2.1 Citation
These guidelines are referred to as the “Teachers’ Service Commission Guidelines in Management of the Payroll Check-Off facility.”
2.2 Interpretation
Various terms are defined, including “ability,” “check-off system,” “deduction code,” “employer,” “guarantor,” “stop order,” and others, to ensure clarity and consistency in understanding.
3. RATIONALE
3.1 Challenges
The Commission has faced challenges with third-party transactions, including complaints about unauthorized deductions, the use of fraudulent documents, and negligence in due diligence by third-party firms. These challenges have strained resources and integrity in payroll management.
3.2 Review Objective
To address these challenges, the guidelines are being reviewed to ensure efficient management of third-party transactions.
4. OBJECTIVES
4.1 Overall Objective
The guidelines aim to regulate the management of the TSC payroll check-off facility.
5. PURPOSE
5.1 Regulatory Framework
The guidelines aim to streamline and regulate the management of the TSC payroll check-off facility, ensuring compliance and protecting employees from exploitation.
6. APPLICATION
6.1 Scope
The guidelines apply to all third parties transacting on the Commission’s check-off facility, effective from April 1, 2021.
7. ESTABLISHMENT OF 3RD PARTY MANAGEMENT COMMITTEE
7.1 Committee Formation
A Third Party Management Committee is established, comprising various Commission officials, to oversee third-party transactions and ensure compliance with guidelines.
7.2 Committee Functions
The committee is tasked with receiving and vetting third-party applications, maintaining records, evaluating performance, and addressing complaints.
8. ADMISSION TO THE TSC CHECK-OFF FACILITY
8.1 Admission Criteria
Entities seeking admission to the check-off facility must meet specified requirements, including tax compliance, certification, and operational history.
8.2 Contractual Engagement
Successful third parties must execute agreements outlining terms and conditions, including obligations, engagement period, fees, and termination clauses.
9. ONLINE T-PAY SYSTEM
9.1 System Features
The T-Pay platform enhances efficiency, enforces regulatory compliance, empowers employees, and minimizes fraudulent transactions.
9.2 User Responsibilities
Employees and third-party firms have defined responsibilities, including initiating and approving transactions, safeguarding passwords, and adhering to contractual terms.
10. ONE THIRD (1/3) RULE
10.1 Deduction Limitation
Deductions through the check-off facility are limited to two-thirds (2/3) of an employee’s basic salary, as per the Employment Act (2007).
11. TRADE UNION DUES AND AGENCY FEE
11.1 Deduction Authorization
Trade union dues and agency fees are deducted in accordance with the Labour Relations Act, based on membership and collective agreements.
12. STOP ORDER
12.1 Discharge of Liability
Third parties are responsible for stopping deductions upon clearance of an employee’s liabilities, with the Commission authorized to intervene if necessary.
13. ACTION AGAINST DEFAULTERS
13.1 Recovery Measures
Third parties are required to pursue all means, including legal action, to recover defaulted amounts, while employee misconduct may result in disciplinary action.
14. ADMISSION TO THE CHECK-OFF FACILITY
14.1 Application Process
Third parties seeking admission must formally apply and meet evaluation criteria, with the Commission retaining discretion over admission decisions.
15. RENEWAL OF ADMISSION TO THE CHECK-OFF FACILITY
15.1 Renewal Requirements
Existing third parties must seek renewal every five years, adhering to application procedures and payment of renewal fees.
15.2 Commission Oversight
The Commission reserves the right to approve or deny renewal applications, ensuring ongoing compliance with guidelines.
These guidelines aim to enhance transparency, accountability, and efficiency in managing the TSC payroll check-off facility, benefiting both the Commission and its employees.
16. SERVICE CHARGE
16.1 Fee for Services
Third parties are required to pay a service charge for various services provided by the Commission, including deduction processing, data management, and reporting.
16.2 Absorption of Costs
The third party is responsible for absorbing the full cost of the service charge without transferring it to the employee.
16.3 Applicable Rates
Service charge rates are outlined in Schedule 3 and are effective from the date of these guidelines. The Commission retains the authority to determine these rates periodically.
16.4 Deduction Process
Service charges are deducted from the third party’s remittances at the end of each month.
16.5 Rate Adjustment
The Commission reserves the right to adjust service charge rates as necessary.
17. TERMINATION OF THE CHECK-OFF FACILITY
17.1 Termination Conditions
The Commission may terminate the check-off facility under various circumstances, including non-compliance with statutory provisions, illegality of deductions, bankruptcy of the third party, fraudulent practices, or regulatory changes.
17.1.6 Appeal Process
If a third party disagrees with the termination decision, they may appeal to the Commission within 21 days of notification.
18. CONTACT PERSONS
18.1 Designation
Third parties must appoint designated contact persons to manage check-off facility matters, as specified in the application form.
18.2 Commission Officers
The Commission designates officers to handle third-party matters related to the check-off facility.
19. GENERAL PROVISIONS
19.1 Compliance
All parties involved must adhere to these guidelines and any future regulations related to the check-off facility through the T-Pay application.
19.2 Data Integrity
Failure to ensure the integrity and accuracy of provided data may result in sanctions outlined in the regulations.
19.3 Fraudulent Practices
Employees engaging in or encouraging fraudulent practices related to the check-off facility are subject to disciplinary proceedings.
19.4 Non-Compliance Consequences
Third parties failing to meet guideline requirements may be barred from submitting new deduction requests, with existing deductions continuing until completion.
19.5 Offences and Misconduct
Various offences and acts of misconduct related to the management of the check-off facility are outlined in the first schedule.
19.6 Sanctions
The Commission may impose sanctions such as warnings, disciplinary actions, suspension, or barring from using the check-off facility for breaches of regulations.
FIRST SCHEDULE: OFFENCES AND ACTS OF MISCONDUCT
The first schedule details specific offences and acts of misconduct, including submission of inaccurate data, forged documents, violation of statutory requirements, failure to stop deductions, unauthorized access, and other contraventions of guidelines or laws.
TSC Revised T-Pay Guidelines for All Third Party Deductions
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