Minister of Employment and Labour, Ms. Nomakhosazana Meth, commends the Labour Inspection team led by the Acting Director General Mr. Viwe Mlenzana, the Department of Home Affairs Immigration, the Bargaining Council and the Hawks. The joint inspection operation was carried out at Babel Restaurant and the nearby Ocean Basket last night, 15 September 2024.

Four people were arrested, two undocumented foreign nationals working at Babel, including their employer, as well as one undocumented foreign national working for Mr Delivery collecting a meal at Ocean Basket.

Babel restaurant was raided following a tip-off to Minister Meth and the Department of Employment and Labour, through social media about serious allegations of mistreatment and unfair labour practice by a former employee of the restaurant.

This set in motion an integrated inspection team made up of 12 Inspection and Enforcement Services (IES) in Gauteng Province, led by the Department of Employment and Labour, duly supported by 15 officials from Home Affairs under the leadership of the Acting Provincial Head, Mr. Albert Matsaung, as well as 21 officials from the Hawks led by Mr. Lesiba Mokoena.

The Bargaining Council, represented by Ms. Monica Basillio, also formed part of the operation.

The pertinent issues regarding the non-compliance of the employers were as follows:

National Minimum Wage Act (NMWA):

Both employers did not comply with the provisions of the NMWA as follows:

• Babel Restaurant failed to comply with Section 4 (4) & (5) of National Minimum Wage Act, in that the employer failed to compensate the employees in accordance with prescribed minimum wage rate for 2024 which is R27,58 per hour. The amount, the employer owes the employees due to underpayment is estimated at two hundred and seventy-one thousand, nine hundred and eighty-four rand, thirty-two cents (R271 984, 32) for cleaners, and two hundred and ninety-five thousand, five hundred and forty seven rand, twenty-eight cents (R295 547,28) for waiters and waitress.
• Waiters were remunerated only on commission and tips at Babel Restaurant and some were remunerated with as little as R150 per shift, at a maximum of R300 per week, which is far below the National Minimum Wage.
• The workers at Babel restaurant worked 12 and 15 hour shifts daily, which is in contravention of the daily and weekly rest period provided for in the Basic Conditions of Employment Act.
• At Ocean Basket the waitresses were also remunerated on tips and commissions. The amount the employer owes the employees, is eight hundred and thirteen thousand, nine hundred and sixty-nine rand (R813 969).
• A combined total of one million three hundred and eighty-one thousand five hundred and sixty cents, R1 381 500.60 is owed to the employees of both restaurants. 

Unemployment Insurance Act (UIA):
The employers failed to comply with the provisions of the UIA as follows:

• Babel Restaurant was found non-compliant with section 56 (1) - (3) of UIA in that, the employer is not registered with the Fund, does not submit monthly declarations of salary information and does not make payments of contribution to the Fund.
• Ocean Basket is registered with the UIF but does not submit monthly declarations of salary information to the Fund.

Compensation of Occupational Injuries and Diseases Act (COIDA):
The employers did not comply with the provisions of the COIDA as follows:

• Babel Restaurant is not registered with the Compensation Fund and has not submitted return of earnings since its inception and commencement of operations from 01 June 2024.
• Ocean Basket failed to submit the return of earnings for 2023 and owes the Compensation Fund R72 000.
• Both the employers further failed to comply with section 81 of COIDA, by not providing the requested employees’ remuneration information, Detail Payroll information, SARS EMP 501; Annual Financial Statements;
• The employers failed to comply with section 82 of COIDA in that the employer failed to consistently submit annual returns of earnings;
• The employers failed to comply with section 86 of COIDA in that the employer did not pay annual assessments.

Occupational Health and Safety Act (OHSA):
The employers did not comply with the provisions of the OHSA as follows:

• GSR 2(1): Employer failed to evaluate the risks in relation to the use of their machinery or the conditions of their machinery thereof.
• GAR 6(1)(a) Employer failed to do legal safety appointment for safety representatives.
• Both employers failed to ensure compliance with gas installations and the Certificate of Conformity in that regard, as a result the use of gas in the kitchens of both restaurants was prohibited.
• The prohibition in regard to ergonomics was issued out in regard to Babel restaurant.
• Furthermore, a prohibition notice in terms of structural deficiency regarding the reception and the entrance were issued at Babel
• Contravention notices were issued for noise levels and the quality of air at Babel restaurant.

Employment Service Act (ESA):

The employers were found non-compliant with the provisions of Employment Services Act read with Immigration Act administered by the Department of Home Affairs and as a result, two employees at Babel were apprehended, including the owner and the Mr. Delivery worker who was collecting food at Ocean Basket.

Minister Meth condemns in the strongest terms, the ill-treatment of workers, in any workplace environment, and encourages employees who may be facing unfair labour practice to report to the nearest Labour Centre in their area.

“The exploitation of vulnerable workers by employers, will not be tolerated in any sector. Members of the public who may be facing unfair labour practices are encouraged to report such incidences to the nearest Labour Centre, as matters of this nature will receive our urgent attention. We take issues of employment and labour matters very seriously,” says Minister Meth.

Media enquiries and interviews:
Ms. Thobeka Magcai
Ministry Spokesperson
Email: Thobeka.Magcai@Labour.gov.za 
Cell: 072 737 2205