From CompliNEWS | Financial Service Intelligence Watch
Almost half of workplaces non-compliant – Meth
Legalbrief today
Following weeks of joint compliance enforcement raids by the Department of Employment and Labour in restaurant establishments across the country targeting key sectors and regions, the department’s findings suggest that at least 49% of the 2 681 inspections conducted were non-compliant, with at least 81 foreign nationals, who did not have the correct documentation, arrested. A Daily Maverick report says at the same time, over R10m in monetary corrections were enforced on the non-compliant establishments. The enforcement raids included, but were not limited to restaurants. ‘Our inspections have revealed instances of non-compliance including underpayment of staff salaries, unlawful deductions, inadequate health and safety measures.’
These were remarks of Minister Nomakhosazana Meth, giving an update on the joint compliance raids that the department has been undertaking since she assumed office in July 2024. According to the department, the Western Cape led with the highest number of inspections, totalling 809, followed by Gauteng with 764 inspections, and KZN with 535. Inspections were also carried out in North West (217), the Eastern Cape (82), Free State (69), and Mpumalanga (59). The department said 49% of the inspected establishments were found to be non-compliant in the following areas:
* Basic Conditions of Employment Act
* National Minimum Wage Act
* Occupational Health and Safety Act
* Compensation for Occupational Injuries and Diseases Act * Unemployment Insurance Act
* Employment Services Act, which also addresses the employment of foreigners in the labour markets.
Read the Full Daily Maverick report here
Read the full Cape Times report here
Meth highlighted that the department was paying close attention to ensuring that employers were meeting minimum wage requirements and maintaining safe working conditions for their employees. Many of the businesses were found lacking adequate protective gear and proper safety measures, endangering employees’ health and well-being, says a BusinessTech report. These issues have been especially concerning in sectors like hospitality, where labour rights are often overlooked in favour of cutting costs. Meth emphasised that merely paying fines without improving compliance is not sufficient. ‘It’s not enough for them to pay and not comply, pay and not comply,’ she remarked, stressing that persistent offenders will face legal consequences. ‘It can’t be perpetual, so we’ve also got a right to take them to court so that they answer for themselves.’ Another critical issue highlighted during these inspections was the widespread non-compliance with UIF contributions.
Many employers have failed to make the necessary contributions, despite the fact that both employers and employees are required to contribute 1% of an employee’s salary to the fund. In cases where these contributions were missing, the department stepped in to ensure that employers made retrospective payments. The inspections also uncovered that some employers had been deducting UIF contributions from their employees’ wages but had failed to pay the funds to the UIF. These employers were forced to settle the unpaid amounts to ensure that their workers were covered by the insurance fund.
Read the Full BusinessTech report here
Meanwhile, Meth said the hiring of undocumented foreigners in various sectors raises serious concerns about their exploitation and the state’s legal frameworks being undermined. ‘We remain deeply concerned about the high unemployment rate of 33.5% among South Africans, particularly affecting our youth,’ said Meth. According to a SowetanLIVE report, she added the department was increasing the number of inspectors from 2 000 to 20 000 to enhance its ability to produce effective audits of inspections.
Beeld reports that Aggy Moiloa, inspector-general of the department, said their future focus will be on inspections about employment of illegal immigrants. The fine linked to such employment is R2 500 per undocumented worker, Moila said, although fines for other transgressions could be much higher. ‘After they are arrested, the Department of Home Affairs starts its own processes and this may include that both workers and their employers may be arrested.’
Read the Full Beeld report here (subscription needed)