Spar employer ordered to pay R12 million for breaking labour laws

The Commission for Conciliation, Mediation and Arbitration (CCMA) has granted eight arbitration awards in favour of the Department of Labour against a Spar Franchisee.

The awards compel the franchisee to comply with compliance orders issued and pay all complainants an amount of R 11,935,478, the Department of Labour said in a statement on Monday (24 February).

The decision follows inspections conducted in May 2019 after the Department’s Inspection and Enforcement Services (IES) received a series of complaints of alleged gross violations of labour laws which were happening at Spar stores across the country.

On investigation, all the stores which happened to be violating the labour laws were found to be owned by the same franchisee.

Ten stores were affected with nine based in Gauteng and one in the North West. Issues raised in terms of labour laws violations included:

  • Failure by the employer to issue employees with contracts;
  • Long working hours without overtime compensation;
  • Sunday pay, public holidays and leave not granted according to the law;
  • The complaints also related to the hiring of illegal foreign nationals; and
  • Illegal deductions.

The inspections were conducted at Spar Orchards, Dely Road, Doornport Spar, Montana Spar, Wierda Spar, Silverton Spar, Zambezi Super Spar, Rietfontein Spar, Silverplace Spar and Safari Spar in Rustenburg.

These outlets employ 565 workers, the Department of Labour said.


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Spar employer ordered to pay R12 million for breaking labour laws