Deputy Minister of Employment and Labour, Phumzile Mgcina, on 20 August 2024, led joint inspections at Chalk Craft Eatery in the hospitality sector within Gauteng Province.

These inspections, conducted in collaboration with the National Bargaining Council for Restaurant Catering Allied Trades, aimed to enforce compliance with various employment laws, including the Occupational Health and Safety Act (OHSA), Basic Conditions of Employment Act (BCEA), National Minimum Wage Act (NMWA), Compensation of Occupational Diseases and Injuries Act (COIDA), Unemployment Insurance Act (UIA), and Unemployment Contributions Act (UICA).

Mgcina expressed her concern during the inspections about the employment of foreign nationals in positions that could have been filled by South Africans. She emphasized that these opportunities, particularly for unskilled workers, should be prioritized for South African citizens, highlighting this as a significant and ongoing issue.

During the inspections, by the inspectors, several non-compliance issues were identified at Chalk Craft Eatery.

The findings of the inspection include amongst others, on National Minimum Wage Act (NMWA): The employer failed to comply with sections 4(4) and 4(5) of the NMWA by not paying employees the prescribed minimum wage rate of R25.42 per hour for 2023. Waitresses were only remunerated on occasions, resulting in a provisional calculation of over R106,000 owed to 12 employees, including penalties under section 76A of the BCEA.

Unemployment Insurance Act (UIA): The employer did not comply with sections 56(1) and 56(3) of the UIA, having commenced operations on 1 July 2023 but only registered with the Unemployment Insurance Fund in May 2024, declaring only one employee. Preliminary calculations indicate a debt of at least R19,422.32 to the Unemployment Insurance Fund.

Compensation of Occupational Injuries and Diseases Act (COIDA): The employer failed to comply with sections 81, 82, and 86 of COIDA by not providing requested employee remuneration information, failing to submit annual returns of earnings, and not paying annual assessments, estimated to be up to R50,652.

Occupational Health and Safety Act (OHSA): The employer did not comply with several provisions of the OHSA, including failing to keep a copy of the Act, not evaluating machinery risks, and not providing first aid boxes at or near workplaces.

The employer failed to ensure that every user or lessor of an electrical installation had a valid certificate of compliance, as required by EIR 7(1). This includes the absence of a valid certificate for the premises, said Advocate Msiza, Provincial Chief Inspector.

The employer also did not comply with Clause 5 of the National Bargaining Council's Collective Agreement by failing to pay employees according to the collective agreement. The amount owed to the waiters, based on the Collective Agreement rate, is yet to be determined by the National Bargaining Council for Restaurants explained Msiza.

Under the Employment Services Act (ESA), the employer was found non-compliant with section 8(1). Nine out of twelve employees were foreign nationals, and their employment validity could not be established due to the unavailability of Immigration Officials from the Department of Home Affairs during the joint inspections.

Msiza said that since the employer was found non-compliant with various employment laws, actions were taken by the Inspection and Enforcement Services (IES)

The actions include, Enforcement Notices that will be issued on August 21, 2024, subject to the finalization of calculations under the UIA, COIDA, and BCEA, read with the NMWA. A Prohibition Notice was issued regarding non-compliance with gas installations, including leaking cylinders, lack of a certificate of conformity, and absence of a permit for storing gas quantities above 100kg. Consequently, the employer was prohibited from using gas stoves, effectively halting operations until compliance is proven.

Contravention Notices were issued for other non-compliances with the OHSA, giving the employer 60 days to comply. Follow-up inspections will be conducted after the notices expire to determine compliance status. If non-compliance persists, referrals for prosecution will be made.

These inspections highlight the ongoing efforts to ensure compliance with employment laws and protect workers' rights in the hospitality sector.

"These findings are deeply concerning and highlight significant non-compliance with essential employment laws. It is imperative that employers adhere to these regulations to ensure the safety, fair treatment, and well-being of their employees. We will continue to enforce these laws rigorously to protect workers' rights and promote a fair and safe working environment in the hospitality sector." Phumzile Mgcina, Deputy Minister of Employment and Labour.

"Non-compliance with employment laws will not be tolerated. Employers must understand that failure to adhere to these regulations not only jeopardizes the safety and well-being of their employees but also exposes them to significant legal consequences. The Department of Employment and Labour is committed to enforcing these laws rigorously to ensure fair and safe working conditions for all employees. We urge all employers to take immediate corrective actions to comply with the law and avoid severe penalties," concluded Mgcina.

For media inquiries, kindly contact:

Teboho Thejane

Departmental Spokesperson

082 697 0694/ Teboho.Thejane@labour.gov.za

-ENDS-

Issued by: Department of Employment and Labour

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