30 January 2019

South Africa: Labour On Naming and Shaming of Employers Who Fail to Comply With National Minimum Wage

Photo: Volkswagen South Africa
Car manufacturing plant in Uitenhage, Eastern Cape
press release

Tough times lie ahead for employers failing to abide by NMW - Department of Labour

Names of employers who fail to comply with the National Minimum Wage (NMW) will be published on the website of the Department of Labour, a meeting was told in the Eastern Cape on Wednesday.

Fikiswa Mncanca, Chief Director for Statutory Services in the Department, was speaking to about 400 inspectors in East London on the state of readiness of the Department to implement and enforce the NMW, which was recently signed into law.

"Shaming such employers will ensure they are recognized as people intent on defying the state. This will go on to ensure that they will not be able to do business with government," She said.

Mncanca said the sanction for not complying with the NMW requires the employer to pay an amount equal to twice the value of the underpayment or twice the month wages, whichever is greater. The Department is required in terms of section 76 (4) of the Basic Conditions of Employment Act (BCEA) on a quarterly basis, to publish in its official website, all employers that were issued with compliance orders.

Mncanca reiterated that the purpose of the NMW is to advance economic development and social justice by improving the wages of the lowest paid workers, protecting workers from unreasonable low wages, preserving the value of the NMW, promoting collective bargaining and supporting economic policy .

She said the NMW was the floor level below which no employee should be paid from 01 January 2019. The level is R20.00 per hour to implemented and enforced. NMW for farm and forestry worker is R18.00 per hour - domestic workers R15.00 per hour and for Extended Public Works Programme (EPWP) is R11.00 per hour.

Mncanca said the NMW would be reviewed annually by the Commission comprising Labour, business and community appointed by the Minister of Labour.

Another similar session will be held in Pretoria, tomorrow.

Issued by: Department of Labour

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