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  • Avoiding Minister Meth’s Wrath

    Avoiding Minister Meth’s Wrath

    During the compliance blitz being undertaken by Minister of Employment and Labour, Nomakhosazana Meth, a large number of employers have found themselves in the spotlight for being non-compliant with legislation.

    Why the crackdown?

    The purpose of these blitz inspections is to test the level of compliance with labour laws such as the Occupational Health and Safety (OHS) Act, Compensation of Occupational Injuries and Diseases Act (COIDA), Basic Conditions of Employment Act (BCEA), Unemployment Insurance Act (UIA), Unemployment Insurance Contribution Act (UICA), and the Employment Equity (EE) Act.

    Timing of Visits

    Labour inspectors often conduct scheduled inspections, providing advance notice to employers. This allows businesses to prepare necessary documentation, such as employment contracts, payroll records, and health and safety protocols. Being aware of scheduled inspections helps in maintaining transparency and efficiency.

    In terms of BCEA Section 65(1), a labour inspector may, however, without warrant or notice, at any reasonable time, enter any workplace or any other place where an employer carries on business or keeps employment records, which is not a home, in order to enforce compliance with labour law. Employers should be prepared for such unannounced or random visits and maintain ongoing compliance with labour laws to avoid potential penalties, as labour law further places a duty on persons to co-operate with and assist labour inspectors.

    Aspects for Inspection

    Employers must comply with all provisions set out in the labour legislation but are not always sure about which areas to focus on. Some basic aspects that will be inspected include:

    · Employment contracts.

    · Registration with the Compensation Fund and proof of payments made.

    · Registration with the Unemployment Insurance Fund and proof of payments made.

    · Copies of relevant posters such as BCEA, OHS Act, and the EE Act.

    · Signed attendance registers.

    · Information about remuneration.

    · Appointed health and safety representatives.

    · Reporting of injuries at work to the Department of Employment and Labour.

    Inspection Process

    During an inspection, the inspector will normally interview a few employees in the employer’s absence to confirm certain aspects of the inspection with the employer.

    If a company fails such an inspection, the company is non-compliant which can have a severe financial impact and exposes it to unnecessary risk. The labour inspector will issue the employer with a compliance order that can result in a monetary penalty.

    The way forward

    To deal with the grave number of issues recently uncovered, Minister Meth announced that the department plans to increase the number of inspectors from 2,000 to 20,000 to enhance the ability to conduct thorough audits. They are going to prioritise high-risk areas, on a risk-based profiling system and focus inspections where non-compliance is most prevalent.

    She also stressed that compliance with our labour laws is not merely a statutory obligation; it is a critical component of creating a stable environment that attracts investments, encourages entrepreneurship, and promotes competitiveness in the global market.

    Make sure that you are ready for a planned or an unannounced visit so that you are not only compliant, but serving your biggest asset – your people – well.

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