Labour blitz: Employers ordered to pay over R10m to short-changed workers
Labour Minister Nomakhosazana Meth on Tuesday gave an update on the nationwide labour compliance blitz targeting the hospitality sector.
The raids, mostly on restaurants, followed allegations of exploitation and violation of the country’s labour laws at popular Menlyn-based eatery Babel, east of Pretoria.
The inspection teams consisted of officials from the Employment and Labour Department, Home Affairs, the bargaining council, and the police, and they aimed to root out non-compliance with the country's labour and immigration laws.
According to the department, while 1,941 foreign nationals were found working at the more than 2,600 establishments visited, only 81 undocumented nationals were arrested during the four-day raids.
Inspector General Aggy Moiloa confirmed employers were also held accountable.
“After the arrests, the Department of Home Affairs will start their processes. This will include making sure that it's not just the workers who get arrested but also the employers because they are the ones who are breaking the law. There is a fine of R2,500 per arrested person that is attached to that.”
READ: Labour department targets 'problematic' restaurants in four-day blitz
The Employment Service Act directs employers to ensure that the foreign nationals they employ have the relevant work permit.
Gauteng had the highest number of arrests after 28 foreign nationals were handcuffed.
Meanwhile, Minister Meth said the most inspections were carried out in the Western Cape, where more than 800 establishments were checked, followed by Gauteng with over 700 inspections.
She said transgressions included non-compliance with the national minimum wage and unlawful deductions from employees’ wages.
“The inspections have revealed instances of non-compliance, including underpayment of salaries, unlawful deductions, and inadequate occupational health and safety measures. To date, we have enforced monetary corrections totalling over R10 million, compelling employers to rectify these violations and honour their obligations to their employees.”
TOP TRANSGRESSORS:
Gauteng – 764 inspections, 72% non-compliance, with R5 504 400.20 enforced
Mpumalanga – 59 inspections, 55% non-compliance, with R651 420.25 enforced
Western Cape – 809 inspections, 43% non-compliance, with R1 923 712.00 enforced
North West – 217 inspections, 42% non-compliance, with R208 867.86 enforced
Eastern Cape – 82 inspections, 40% non-compliance, with R602 784.06 enforced
KwaZulu-Natal – 535 inspections, 34% non-compliance, with R1 057 648.05 enforced
Free State – 69 inspections, 32% non-compliance, with R 169 108.85 enforced
Limpopo – 106 inspections, 22% non-compliance, with 448 178.90 enforced
At the time of the raid on Babel, the labour department’s spokesperson, Thobeka Magcai, said the restaurant failed to comply with the national minimum wage of R27,58 per hour, and waiters were renumerated on tips and commission only.
“Babel Restaurant failed to comply with Section 4 (4) & (5) of the National Minimum Wage Act, in that the employer failed to compensate the employees by the prescribed minimum wage rate for 2024, which is R27,58 per hour. The amount the employer owes the employees due to underpayment is estimated at R271 984,32 for cleaners and R295 547,28 for waiters and waitresses,” Magcai revealed.
Meth said her department will introduce risk-based profiling, to maximise the effectiveness of the inspections, which will allow officials to prioritise audits and inspections based on identified risks and to address high-priority non-compliance.
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