Labour Department recovers R10m in fines from non-compliant hospitality businesses

By Lee-Yandra Paulsen

The Department of Labour has recovered R10 million in penalties from non-compliant businesses following a nationwide inspection campaign. More than 2,500 spot checks were conducted in the hospitality industry, revealing serious labour law violations in dozens of restaurants.

Lauren Salt, an executive in the Employment practice at ENSAfrica, explained on VOC’s Sunday Live that the Department of Employment and Labour has been focusing on non-compliant sectors. “The hospitality industry was the starting point, but it’s not the only sector they will target. I believe they have moved on to the logistics sector,” Salt said.

The inspections were reportedly triggered by a viral TikTok video in which a waitress complained about her restaurant’s failure to comply with labour laws. This prompted the Department of Labour to broaden its investigations into other industries.

“The department uses its authority to conduct spot checks under various labour laws,” Salt explained. “They assess compliance with the Basic Conditions of Employment Act, including working hours, overtime, and whether businesses have proper employment contracts outlining terms and conditions. They also check if companies adhere to employment equity requirements, such as submitting employment equity reports.”

Salt noted that many businesses were found non-compliant because their employment contracts failed to reference important details required by the Basic Conditions of Employment Act. The inspections are part of the Department of Labour’s broader effort to ensure that sectors across the economy are following labour laws.

VOC News

Listen to the full interview below.

Photo: Pixabay

Picture of Aneeqa Du Plessis
Aneeqa Du Plessis

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