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NATIONAL MINIMUM WAGE: DoEL DRAWS ATTENTION TO NON-COMPLIANCE PRACTICES, CONSEQUENCES
- 25 August 2023
- Labour Law
- SA Legal Academy
The Department of Employment & Labour has issued a media statement drawing attention to National Minimum Wage Act non-compliance practices for which employers may be penalised.
Quoting inspection and enforcement service unit official Pravine Naidoo, the statement refers to:
- ‘unilaterally’ altering hours of work or other conditions of employment
- making deductions without an employee’s written consent or in the absence of a collective agreement, court order or arbitration award, and
- reducing an employee’s wage by the cost/value of transport, tools, board and lodging/food and accommodation, payments in kind, or tips, bonuses and gifts.
Naidoo made these observations during an advocacy seminar in Richards Bay.
Regarding exemption applications, the statement quotes input from Deputy Director for employment standards, Mogodi Masenya, who reminded attendees of certain requirements, including:
- ‘meaningfully’ consulting employees and/or any representative trade union beforehand
- the need for supporting documents such as full financial statements and balance sheets for the current year and previous two years, as well as income and expenditure ‘predictions’, and
- providing affected employees and/or any relevant trade union representative/bargaining council with ‘a copy of the application downloaded from the system’.
This is noting that, according to Naidoo:
- first offenders may face fines ‘equal to twice the value of the underpayment or twice the monthly wage, whichever is greater’
- repeat offenders may face fines ‘equal to thrice the value of the underpayment or thrice the monthly wage, whichever is the greater’ and that
- the names of employers issued with compliance orders are published quarterly on the department’s website.
Please click the lilnks below for more information:
- media statement
- 2018 Act
- 2020 amendment Act
- regulations
- minimum wage 2023/24
Published by SA Legal Academy Policy Watch
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