Department of Employment and Labour mega blitz reveals low compliance levels in the hospitality sector

26th January 2022

Department of Employment and Labour mega blitz reveals low compliance levels in the hospitality sector

Employment and Labour Minister Thulas Nxesi

The Department of Employment and Labour's mega inspection blitz, which began on Monday, revealed a 42 percent compliance rate in the Western Cape's Hospitality Sector.

On the first day of the mega-blitz, the department conducted 118 inspections, with 50 employers complying and 68 non-complying.

The following areas of noncompliance were identified in the inspectors' reports:

Aggy Moiloa, Inspector-General of the Department of Employment and Labour, stated that the inspection blitz would continue in other provinces over the next few months and that some of these would target other vulnerable sectors in addition to the hospitality sector. Moiloa explained that the strategy was to focus on problematic sectors on a province-by-province basis. She added that, in addition to the blitz, the department was planning to host a Hospitality Sector seminar in the coming weeks as part of its education and advocacy efforts.

Western Cape Provincial Chief Inspector David Esau said inspectors remained on track to visit 500 workplaces by the end of the week to examine all facets of the department's legislation.

Esau reflected on several observations thus far, noting that five establishments have closed due to financial constraints and converted their restaurants into apartments. He stated that three establishments (bed and breakfasts) refused to comply with departmental requests for access because their gates were closed and inspectors were unable to enter their premises. He stated that the companies will be visited again with the assistance of the South African Police Services.

He stated that three businesses that employ foreign nationals have been asked to provide proof of valid documents, which will be referred to the Department of Home Affairs for verification. "The other issue we discovered was unpaid TERS benefits to employees for the months of October 2020-December 2020, and January 2021-March 2021 - the matter is currently being investigated by the Department", Esau said.

He welcomed the employers’ co-operation. 

Employment and Labour Minister T.W Nxesi also joined a team of departmental inspectors today in Sea Point, Cape Town to ensure the enforcement of the labour legislation in the Hospitality Sector. The Minister’s visit was part of the Department of Employment and Labour’s Inspection and Enforcement Services (IES) branch in the Western Cape Province currently on mega blitz inspections targeting the Hospitality Sector. 

The mega blitz inspections started this week on Monday, 24 January 2022 and will end on Friday, 28 January 2022. The focus of inspections is in the Cape Town Metropole, Coastline, Cape Winelands and Overberg regions.

The inspectorate is testing compliance on the National Minimum Wage Act (NMWA); Occupational Health and Safety Act (OHSA); Basic Conditions of Employment Act (BCEA); Unemployment Insurance Act (UIA) and Compensation for Occupational Injuries and Diseases Act (COIDA).

The Minister lamented the continued non-unionisation of workers saying the lack of union structures in some workplaces was making the work of the department difficult. He said unions exist to protect the workers and take immediate action when problems arise. He said the Hospitality Sector was problematic because there were no proper bargaining structures.

"I hope employers will recognize the existence of unions in the hospitality sector so that appropriate structures of engagement can be established to stabilize the labour market", Minister Nxesi stated. According to the minister, there are also concerns about the prevalence and abuse of human rights, including assaults on workers.

"We have been working under difficult circumstances for the last two years of COVID-19"; Minister said. Workplace dynamics have shifted. Numerous workers are classified as atypical, and millions have been pushed into the informal sector in recent years. We must develop new strategies to cushion and protect vulnerable workers"; Minister Nxesi concluded.

 

Issued by Department of Employment and Labour