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East mall restaurants have 14 days to pay workers outstanding R1.3m in wages – Labour Department
The two classy restaurants in Menlyn Mall in the east of Pretoria found to have been allegedly exploiting workers have 14 days to pay workers the over R1.3-million wages owed to them and ensure they are not in contravention of labour practices.
The Labour Department confirmed the timeline to Rekord as the eateries were found contravening labour practices.
Thobeka Magcai, spokesperson for the Minister of Labour and Employment, said both employers violated the Basic Conditions of Employment Act 75 of 1997 and the National Minimum Wage Act 9 of 2018.
She said the restaurants had only 14 days to rectify this and pay their workers R1.3-million in wages to be compliant.
The restaurants were raided on Sunday by the police, Home Affairs, and the Department of Labour, following a tip-off about unfair labour practices.
A former worker had taken to social media to raise concerns about poor working conditions and mistreatment of workers, alleging she had to buy her own equipment, was not paid a basic salary, and was charged a non-refundable breakage fee of R200 daily.
Magcai said through the joint operation several pertinent issues regarding the non-compliance of the employers were discovered.
Four people were detained as employers of, and as undocumented foreign employees. The manager of one restaurant was charged and fined for employing illegal immigrants.
Magcai said regarding the contravention of the Occupational Safety and Health Act 85 of 1993, the restaurants have 60 days to rectify it.
“If the Occupational Safety and Health Act is not complied with after the 60 days, it can lead to the operations being prohibited at the facility, even use of equipment.”
She said the prohibition will only get lifted when the employer takes corrective action.
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The non-compliance issues discovered included that one restaurant did not pay its employees the 2024 minimum wage of R27.58 per hour, owing them over R270 000 in underpayment.
The estimated unpaid wages for cleaners amounted to R295 547, while waiters were only paid through commission and tips, earning as little as R150 per shift and a maximum of R300 per week – far below the legal minimum.
Workers at the restaurant where the manager was arrested were working 12 to 15 hour shifts, breaching the Basic Conditions of Employment Act 75 of 1997.
At the second restaurant, where a delivery worker was arrested, waitresses were also only paid through tips and commission.
The employer owes around R813 969 in unpaid wages, bringing the total owed to over R1.38-million for both restaurants.
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The restaurants were found to be non-compliant with the Unemployment Insurance Act 63 of 2001, with one restaurant not registered with the fund, failing to submit salary declarations or contributions.
The second restaurant was registered, but did not submit the required monthly declarations.
Both restaurants also violated the Compensation of Occupational Injuries and Diseases Act 130 of 1993.
One failed to register with the Compensation Fund since it began operations in June, and the other owed R72 000 to the fund. Both had also failed to submit returns of earnings and provide payroll information.
The employers were found to be in breach of the Occupational Health and Safety Act 85 of 1993, with machinery risks not evaluated, no safety representatives appointed and non-compliant as to gas installations.
As a result, the use of gas in both kitchens was prohibited. A prohibition notice for structural deficiencies was issued to one restaurant, along with notices for noise levels and poor air quality.
The employers were also found non-compliant with the Employment Services Act 4 of 2014 and the Immigration Act 13 of 2002, according to Minister of Labour and Employment Meth Makhosazana.
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