Dr Pravine Naidoo from the Advocacy & Stakeholder Relations unit in the Department’s Inspection and Enforcement Service told the seminar that employers who pay their employees less than the set national minimum wage face fines.
Dr Naidoo was addressing an advocacy seminar at Mark Strasse Civic centre at the uMhlathuze Municipality in Richards Bay, today. The theme of the seminar is “Paying the National Minimum Wage is the Right Thing to Do”.
“An employer who is found to have failed to comply with the NMW will be fined by a labour inspector an amount equal to twice the value of the underpayment or twice the monthly wage, whichever is greater for first offenders and an amount equal to thrice the value of the underpayment or thrice the monthly wage, whichever is the greater, for repeat offenders,” Dr Naidoo said.
Dr Naidoo told the seminar that on top of penalties, the Department is required as per section 76 (4) of the NMW Act, to publish in its official website, on a quarterly basis, all the employers that were issued with compliance orders for failure to comply with the NMW.
He also told the seminar that it is an unfair labour practice for an employer to unilaterally alter hours of work or other conditions of employment in implementing the National Minimum Wage (NMW).
“If in the context of the implementation of the NMW, the employer reduces hours of work, that will be regarded as an unfair labour practice. The inspector shall advise the employee to refer the unfair labour practice to the Commission for Conciliation, Mediation and Arbitration (CCMA) in terms of the Labour Relation Act 66 of 1995 (LRA) as amended -sections 191, 193, 194(4) and 195,” Dr Naidoo said.
Naidoo said the NMW does not include payment of allowances such as transport, tools, food or accommodation, payments in kind -board or lodging, tips, bonuses nor gifts; unless it is specified in the SD.
He also warned employers to refrain from making deductions without employee/s agreeing in writing or there being a debt specified in the agreement or the deduction is required or permitted by law, collective agreement, court order or an arbitration award or where a deduction is as a result of loss or damage to reimburse the employer.
Deputy Director: Employment Standards, Mogodi Masenya presented the regulation pertaining to the exemption from paying the NMW. “Before an employer can apply for exemption, he or she must meaningfully consult every representative trade union/workers and must provide the bargaining council, union or affected workers a copy of the application downloaded from the system,” he said.
He told the seminar that the application must be accompanied by full financial statements and balance sheets for the 3 years (current year predictions and 2 previous years), finance costs, donations, operating expenses et cetera.
Advocate Lethabo Shokane from the Compensation Fund took the seminar through the changes to the Compensation for Occupational Injuries and Diseases Act (COIDA). Some of the changes he highlighted include the empowerment of the Compensation Commissioner to perform the functions that were previously performed by the Director-General; the introduction of rehabilitation, re- integration and return to work of occupationally injured and diseased employees; the regulation of the use of health care services; the powers vested on the Commissioner to review pension claims or awards; regulation of compliance and enforcement of employers; and the administration of penalties.
Enquiries:
Teboho Thejane
Cell: 082 697 0694
E-mail: Teboho.Thejane@labour.gov.za
