DEPARTMENT OF EMPLOYMENT AND LABOUR INSPECTIONS

South African labour legislation is extensive and non-negotiable.  Many employers do business honestly believing they comply with labour law, when in fact they do not.  Non-compliance can have a serious financial impact, putting your business at unnecessary risk.  The Department of Employment and Labour has the authority to enforce labour law and to conduct regular inspections of the workplace to ensure compliance.

3 TYPES OF LABOUR INSPECTIONS

There are three types of labour inspections, each focusing on compliance with a different set of legislation.  Employers should take note to differentiate between these types of inspections to ensure compliance as a whole.  The three types of labour inspections address the following:

1.  Basic Conditions of Employment Act

This labour inspection focuses on compliance with the minimum terms and conditions of employment the employer and employee may agree on, including industry specific legislation such as a Sectoral Determination of Bargaining Council main collective agreement, which regulates labour law in a specific sector.

 

The inspector will look at the following:

  • Employment contracts (written particulars of employment)
  • Attendance register
  • Information about remuneration – pay slips/envelopes, minimum wage, overtime, paid leave, working hours, etc.
  • UIF and COIDA registration and proof of payments made
  • List of all employees’ names and ID numbers

WHAT IS THE RISK?

Non-compliance:  the inspector will issue the employer with a compliance order (dated), after which a monetary penalty or imprisonment may be imposed.

2.  Employment Equity Act

This labour inspection focuses on compliance with the Employment Equity Act, which aims to eliminate unfair discrimination in the workplace and promote equal opportunity and fair treatment.  “Designated employers” are employers who meet certain criteria and they have additional obligations.  Employers must check whether they are classified as “designated employers” in order to ensure compliance.

WHAT IS THE RISK?

Non-compliance:  a “designated employer” can be fined for the first offence up to R1.5 million or 10% of the employer’s annual turnover (whichever is the greatest) and/or 10 years imprisonment.

3.  Occupational Health and Safety Act

This labour inspection focuses on compliance with health and safety regulations to ensure a safe and healthy workplace.  The inspector will look at the legislative poster, health and safety representative and committee, applicable signage and personal protective equipment, etc.

WHAT IS THE RISK?

Non-compliance:  the inspector will issue the employer with a compliance order (dated) and/or temporarily shut down business activities, depending on the severity of non-compliance.  Continuous non-compliance may result in penalties, imprisonment and possible criminal prosecution.

JOIN THE LWO

SECURITY CONCERNS

Many employers are concerned about security due to people falsely posing as inspectors from the Department of Employment and Labour in order to gain access to the premises.  Insist on positive identification of the person who introduces him-/herself as an inspector and first verify the information before giving the person access to your premises.  Also remember that no inspector may charge a fee for the inspection, investigation, advice or any assistance.  The Department of Employment and Labour does not delegate any third party to conduct an inspection on behalf of the Department – none of the Department’s powers may therefore be delegated.  No inspector may sell posters, products, or information.

INSPECTOR’S RIGHT TO CONDUCT LABOUR INSPECTIONS

In terms of BCEA Section 65(1) a labour inspector may, 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, that is not a home, in order to enforce compliance with labour law.  Labour law further places a duty on persons to co-operate with and assist labour inspectors.

 

  • Scheduled inspections: 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.

 

  • Random visits: In addition to scheduled inspections, inspectors may also conduct unannounced or random visits to workplaces. Employers should be prepared for such surprise visits and maintain ongoing compliance with labour laws to avoid potential penalties.

 

A labour inspector is empowered by legislation to arrive at a workplace with or without notice to conduct an inspection. The employer is similarly obligated to answer any questions put to him/her by the labour inspector and to provide the inspector with any assistance that he/she may require to perform his/her functions effectively.  South African labour legislation is extensive and non-negotiable.  Non-compliance can have a serious financial impact, putting your business at unnecessary risk.

IS YOUR BUSINESS LABOUR-COMPLIANT?

FIND OUT NOW.

Stay ahead with our comprehensive compliance questionnaire. We’ll help pinpoint any gaps, ensuring you operate within legal guidelines.