Workplace non-compliance in the Western Cape Province indicates a worrying trend across all sectors
Fifty percent of employers inspected by the Department of Employment and Labour inspectors in the Western Cape province during the 2021/2022 financial year are not complying with labour legislation.
The compliance level dropped to 43.46% in the 2022/2023 financial year, indicating a worrying trend across all sectors said Hlanganisa Dalasile, Employer Audit Specialist at the Department of Employment and Labour in Western Cape Province.
Dalasile revealed the statistics during the Unemployment Insurance Fund (UIF) Commissioner’s breakfast session with employers held at the Cape Town International Convention Centre (CTICC) today, (18 November 2022).
In terms of compliance with the UIF, Dalasile said challenges observed across all sectors include amongst others:
- Employers not registering employees with the Fund as soon as they commenced business;
- Employers not declaring employees on a monthly basis and not paying contributions to the UIF on a monthly basis before the 7th day of each month as mandated by law;
- and employers who only want to be in compliance only when they require the Letter of Compliance to acquire tenders.
“Employers not declaring employees on a month-to-month basis has a huge implication. The UIF every month loses millions of rands due to employers who are not paying and declaring their employees. We depend on the employers to do the right thing on a monthly basis to prevent the loss that the Fund is experiencing,” said Dalasile.
As mandated by the amended Unemployment Contributions Act No. 4 of 2022, employers must pay unemployment insurance contributions of 2% of the value of each worker's pay per month. The employer and the worker each contribute 1%.
“When conducting our audits, we have picked up that many employers are deducting money from employees but they don’t pay it over to the Fund which is wrong. You can’t deduct money then keep it in your investment account to accumulate interest while the workers are suffering,” lamented Dalasile.
He added that “if as an employer you really care about the workers we urge you to do the right thing. Deduct the money and pay it over to the Fund so that when the employees are losing their employment in the near future they are not found wanting.”
UIF Commissioner Teboho Maruping said compliance with the Fund is essential and for the benefit of both employers and employees. “It’s possible that as a collective we can address these matters but we need to come up with viable solutions. Let’s find solutions together and meet each other halfway as the Fund, employers and organised labour,” said the Commissioner.
For media enquiries, contact:
Mapula Tloubatla
Provincial Communication Officer: Western Cape
060 989 7509
Mapula.Tloubatla@labour.gov.za
