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Babel raid aftermath - a checklist for restaurant owners and staff about South Africa's labour laws

Babel raid aftermath - a checklist for restaurant owners and staff about South Africa's labour laws
Inside Babel restaurant in Menlyn, posted on 15 September 2024. (Photo: X/@Meth_Khosi)
Michelle Banda
By Michelle Banda
25 Sep 2024
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Following the controversial Babel restaurant incident, concerns over labour practices in the restaurant industry have intensified. This article explains key South African laws governing the restaurant industry, ensuring both owners and employees understand their rights and responsibilities.

The recent Babel restaurant incident, which exposed alleged exploitation and contraventions of labour laws, has sparked a broader conversation about the South African restaurant industry. The Department of Labour, Home Affairs, and Hawks have launched more than 2,000 inspections to ensure compliance across establishments across the country.

Authorities have identified the hospitality sector as a hotspot for non-compliance with employment laws, with nearly half of the raided establishments said to be flouting labour laws. With Gauteng, Mpumalanga, and the Western Cape reporting the highest rates of transgressions, this raises serious concerns about the legal responsibilities of restaurant operators and the rights of employees.

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

Daily Maverick spoke to Monica Basilo, the Chief Administrative Officer of the Bargaining Council for Food, Retail, Restaurant, Catering, and Allied Trades. She provided an overview of the key labour laws governing the restaurant industry, based on the 2022 Collective Agreement from the Bargaining Council, established under the Labour Relations Act.

The role of bargaining councils in the restaurant industry


South Africa has more than 40 bargaining councils, including the one responsible for the restaurant sector. But what exactly is a bargaining council?

A bargaining council is established by employer organisations and trade unions to handle labour disputes, manage collective agreements, and recommend policy changes. The Bargaining Council for Food, Retail, Restaurant, Catering, and Allied Trades plays a critical role in monitoring restaurant compliance with labour laws. 

hospitality industry exploitation babel restaurant Inside Babel restaurant in Menlyn, Pretoria, posted on 15 September 2024. (Photo: X/@Meth_Khosi)



According to Basilo, the recent raids were long overdue. She emphasised the importance of employers and employees understanding and abiding by the laws governing the industry: “We have been part of the raids, including the Babel one. Our main agreement has existed for years, but many simply ignore it. We continuously advise employers and employees of their rights, but compliance remains a challenge.”

South African laws governing the restaurant industry

The restaurant industry in South Africa is highly regulated, with multiple laws and regulations to protect employees and ensure fair working conditions. The key laws include:

  • Basic Conditions of Employment Act

  • Bargaining Council’s Main Agreement


Basic Conditions of Employment Act


The act is a foundational labour law in South Africa, safeguarding workers’ fundamental rights. Key areas it covers include working hours, overtime, leave entitlements, and remuneration.

  • Working Hours: employees are limited to a maximum of 45 working hours per week. If working five days or less, the daily limit is nine hours; for those working more than five days, the daily limit is eight hours.

  • Overtime: overtime is limited to 10 hours per week, and employees cannot be forced to work beyond 12 hours a day. Overtime must be compensated at 1.5 times the regular wage. Sundays and public holidays are paid at double the normal wage.

  • Meal Intervals: employees are entitled to a 60-minute meal break after five hours of work. A written agreement can reduce this to 30 minutes.

  • Night Work Compensation: employees working between 6pm and 6am must receive a travel allowance (currently R210 per month) or reduced working hours, or the employer must provide transport. A separate agreement from September 2018 stipulates a night shift allowance for those working after 8pm with R8 extra per shift for under four hours, and R16 for more than four hours.


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

Main agreement and restaurant employees


The Bargaining Council’s Main Agreement sets out, among others, conditions of employment, specific regulations for restaurant employers, and rights of employees, including minimum wage and commission-based pay.

As per the agreement, the minimum wage for restaurant workers is set at R27.58 per hour, but employees can earn more based on their hours and roles. In the same agreement, a particular clause that focuses on commission work ensures that waiting staff are protected under the Main Agreement. The clause specifically allows workers to negotiate for a commission paid by their employer, and that commission does not include tips or gratuity. This has to come from the employer, and if it falls below the minimum wage, the employer has to top up the difference.

According to Basilo, tips or gratuities are separate from the commission and are not counted toward the minimum wage. 

“We found that waiters were being exploited, so this specific clause was added to protect them,” said Basilo.

Legal status of tips and gratuities


While the law does not explicitly regulate tips, employers cannot use tips to meet minimum wage requirements. The practice of employers taking a percentage of tips is not governed by specific regulations, leaving this arrangement to the discretion of the restaurant owner and their employees. However, employees need to be aware of this and negotiate clearly with their employers.

Common compliance issues in the restaurant industry


Basilo highlighted that despite the existence of clear laws, non-compliance is widespread in the restaurant industry. She pointed to several reasons for this:

  • Misguided Advice: restaurant owners often receive incorrect advice from representatives who may not fully understand the law. This leads to businesses not complying with regulations until they face raids or inspections.

  • Understaffed Bargaining Council: with only two agents available to inspect restaurants daily, ensuring compliance is challenging. While the Bargaining Council conducts random checks, the workload is overwhelming.

  • Fear of Reporting: many employees, particularly waiters, are hesitant to report non-compliance due to fear of repercussions in the workplace.


“Waiters are our biggest complainers, as they are often the most exploited. Their complaints range from not receiving the minimum wage and relying solely on tips, to not getting the night shift allowance,” said Basilo.

She added: “Unlike the department, we have too few agents and the workload is quite large, with only two permanent agents going out every day on an appointment basis to check the books and whatever is not correct and try to correct it. While we don’t have the exact stats around the complaints, it depends on the month. Even though we don’t have complaints we do random checks and pick an area anywhere within our jurisdiction to assess. Since the Babel incident, we have had an influx of complaints because now people have used the opportunity to come to report issues.”

While enforcement remains a challenge, the recent raids are a step in the right direction. For restaurant operators and waiting staff seeking further clarity, the Bargaining Council remains a vital resource for guidance and dispute resolution.

For more information or to report non-compliance, restaurants and employees can contact the Bargaining Council for Food, Retail, Restaurant, Catering, and Allied Trades here. DM

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