Department of Employment and Labour claims half of workplaces visited non-compliant with labour laws

1 Oct 2024

Operation Yazini inspections have revealed instances of non-compliance including underpayment of staff salaries, unlawful deductions, inadequate health and safety measures.

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. At the same time, R10,357,288.00 in monetary corrections were enforced on the non-compliant establishments. The enforcement raids included, but were not limited to restaurants.

Read more: Waitress’s Babel video sparks restaurant raids and debate on hospitality industry exploitation

“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 of Employment and Labour, Nomakhosazana Meth, at a media brief on Tuesday giving an update on the joint compliance raids that the department has been undertaking since she assumed office in July 2024, almost 100 days ago.

To date, the department has reported it has undertaken 2,681 inspections targeting key sectors and regions, with significant activity in the Western Cape, Gauteng, and KwaZulu-Natal.

Read more: Babel raid aftermath – a checklist for restaurant owners and staff about South Africa’s labour laws

According to the department, the Western Cape led with the highest number of inspections, totaling 809, followed by Gauteng with 764 inspections, and KwaZulu-Natal 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.

Promoting fairness and protecting workers.

What happens to arrested persons or establishments found to be non-compliant?

Department Inspector General Aggy Moiloa said: “Through the raids that we have conducted from 18 to 20 September, 81 undocumented workers were arrested. Normally what will happen is that after getting arrested the Department of Home Affairs starts their processes, and this will include among other things ensuring that it is not only the workers who get arrested but also the employers, as they are the ones literally breaking the law. The fine attached to that is R2,500 per arrested person, and thereafter a process which includes deportation.”

Read more: Menlyn Babel’s problems are not ours, says Ocean Basket

As in the hospitality industry, there have been reports of unfair labour practices in the roads and flight sector. In May 2024 there were tensions stemming from South African truck drivers’ associations, with a planned “national shutdown” that was later called off. This stemmed from truckers accusing the Department of Labour of ignoring unfair labour practices in the freight industry, including the hiring of foreign nationals.

Speaking about the issue, Moila said that the department had a long history with the freight sector.

“Consultations began in and around 2018, and are ongoing. Yes, we did receive a list of issues. We normally approach it in a coordinated manner and have several departments in government taking part in that project. The list we got included about 1,000 employers, and the department started a concerted effort at the beginning of this year, with a total inspection of under 800.”

On trends, the department had picked up and how they addressed these, she said.

“In terms of compliance levels, most of the reports we have show a strong feature of non-compliance in occupational health and safety, followed by the Compensation of Occupational Injuries and Diseases Act. We pick up things such as not finding risk assessments of the workplaces, proper protective equipment or the workers being knowledgeable about that, no register of incidents or near incidents. Submission of annual returns are also not done. Companies found to not comply with the Unemployment Insurance Fund often do not register or contribute towards the fund.”

Plan to increase inspectors

To deal with the issues, Meth said the department planned to increase inspectors from 2,000 to 20,000 to enhance the ability to conduct thorough audits. She said they would be prioritising high-risk areas, on a risk-based profiling system that would be implemented, focusing inspections on where non-compliance is most prevalent.

“Compliance with our labour laws is not merely a statutory obligation, it is a critical component of creating a stable environment that attracts investments, encourages entrepreneurship and promotes competitiveness in the global market,” said Meth. DM

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What happens to arrested persons or establishments found to be non-compliant?

Plan to increase inspectors