Labour department scores R10 million in business clampdown

The Department of Labour has recently collected more than R10 million from employers across South Africa as part of an extensive compliance inspection and enforcement operation. 

The initiative is part of a larger crackdown aimed at ensuring that businesses comply with labour laws, particularly regarding wages and working conditions.

Employment and Labour Minister, Nomakhosazana Meth, outlined the details of the operation in an interview with Newzroom Afrika. 

According to her, nearly 2,900 inspections were carried out in under a week in September, during which labour officials visited establishments across various sectors in all provinces. 

Although the department conducts these types of inspections regularly, Meth noted that this particular wave of inspections saw an increase in both the speed and visibility of the operation.

Among the provinces, the Western Cape led with over 800 inspections, followed by Gauteng with more than 700 and KwaZulu-Natal with over 560. 

The inspections focused on compliance with a range of labour laws, from wage requirements to workplace safety standards. 

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. 

These issues have been especially concerning in sectors like hospitality, where labour rights are often overlooked in favour of cutting costs.

When violations are found, the department takes a structured approach to penalising the offending employers. 

Initially, businesses are issued prohibition orders. These serve as formal warnings and require employers to rectify the violations. If they fail to comply, fines are imposed. 

If the infractions continue, the department will take legal action by bringing the employers to court.

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 (Unemployment Insurance Fund) 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 UIF plays a crucial role in providing a financial safety net for employees, especially during periods of unemployment, illness, or maternity leave, and the department is working to ensure that every worker is covered.

Meth explained that although some employers initially challenged the department’s findings, they often rectified the issues by paying what they owed. 

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.

Looking ahead, the Department of Labour plans to ramp up its educational efforts, aiming to inform both businesses and employees about their rights and obligations. 

The department is hopeful that raising awareness will encourage greater compliance and foster a fairer, safer working environment across South Africa.

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