Department of Employment and Labour Status of Compliance Report highlights the need to improve compliance with labour law

There is a lack of will and appetite in the labour market to self-regulate and comply with employment law, so said Manelisi Luxande – Department of Employment and Labour Acting Chief Director: Statutory & Advocacy Services when he was delivering the Inspection and Enforcement Services (IES) branch Status of Compliance Report.

Luxande was addressing the first day of an Employment Standards (ES) conference held at Olive Convention Centre in Durban, on the summary of compliance for the 2023/2024 full year and 2024/2025 in Quarter 1.

The theme of the three-day conference is: “Advancing Social Justice through Effective Labour Inspections". The inspectors conference is attended by representatives of business, labour federations (Cosatu, Nactu, Fedusa and Saftu) and representatives from academia. The conference will conclude on Thursday with an awards ceremony to recognise work performed by inspectors.

The 2023/2024 audited report showed that:

• A total of 308 799 (annual target of 298 104) workplaces were inspected;
• The above figure exceeded the annual target by 4%;
• Only 74 858 were non-compliant (29%);
• Only 74,305 were issued with non-compliance notices.

While in 2024/2025 – Q1 (April – June)

• A total of 77 224 workplaces overall were inspected;
• Only 58 500 were compliant (76%);
• A total of 18 724 workplaces were found to be non-compliant (24%);
• A total of 18 592 non-compliant notices were issued.

The purpose of the report was to place the spotlight on compliance per legislation; to look into the trends and patterns on matters of compliance in the labour market; and to reflect on challenges relating to compliance with employment law;

For 2023/2024 in terms of Employment Equity (EEA):

• A total of 3324 workplaces (annual target: 3152) were scrutinized to ascertain compliance with EEA;
• Only 1082 workplaces (34%) were compliant with EEA;
• A total of 2070 workplaces (66%) were found to be non-compliant with EEA;

In terms of the Unemployment Insurance Fund Act (UIFA; Unemployment Insurance Contributions Act (UICA) & Compensation for Occupational Injuries and Diseases Act (COIDA):

A total of 19 924 workplaces (annual target: 17 856) were audited to check compliance with UIFA; UICA & COIDA (112%);

• Only 8559 (43%) were compliant;
• Of the 19 924 workplaces, 11 365 (57%) were found non-compliant & all were issued with notices
• A total of 10 038 payroll audits (annual target: 9204) were conducted at workplaces to check compliance with COIDA
• Only 3361 workplaces (33%) were found to be compliant
• A total of 6677 (67%) were found to be non-compliant
• All the 6677 non-compliant employers were issued with notices.

The Basic Conditions of Employment Act (BCEA):

• A total of 169 295 workplaces (annual target: 168 864) were inspected against compliant with BCEA
• A total of 151 022 (89%) were found to be compliant
• Only 17 948 workplaces (11%) were found to be non-compliant
• Of the 17 948 non-compliant employers, 18 273 (98%) were issued with notices
• The remaining 2% of non-compliant workplaces were issued with notices after 14 days.

Occupational Health and Safety (OHS) 

• A total of 106 390 workplaces (annual target: 98 856) were inspected for compliance with OHSA
• Only 69 917 complied with OHSA (66%)
• A total of 36 473 were non-compliant (34%)
• All 36,473 workplaces were issued with notices (100%).

The IES branch's mandate is to protect vulnerable workers in the SA labour market – as derived from the country's Constitution. The IES' strategy is premised on four pillars including advocacy, inspection enforcement, and capacity development.

Luxande highlighted the approaches to inspection saying these take the form of proactive inspections and reactive inspections. He said the inspectorate was seized with the transformation of workplaces and yet transformation was stubbornly stagnant.

Continuing on his presentation he said compliance was imperative because it ensured: improved social security; sound labour relations; reduction of poverty and unemployment; provided an opportunity to bargain collectively; result in less economic disruptions; provides good prospects for economic growth; ensures safer workplaces; and risk of collapse of business is mitigated.

He said low levels of workplace unionisation were posing a headache for the inspectorate, “existence of unions will make the job of inspectorate easier".

Luxande concluded by saying that to improve compliance with employment law there is a need for:

• Aggressive audit and inspection of workplaces in compliance with UIF and COID;
• igorously push and hold companies accountable for lack of transformation
• At policy level, social partners need to give certainty and direction on regulation of hybrid or remote work
• To isolate and zoom into high-risk sectors with poor compliance levels
• To enhance collaboration with relevant stakeholders
• Intensify advocacy to help labour market to self-regulate and comply
• Intensify advocacy with organised labour to mitigate against low levels of workplace unionization. 

For media enquiries contact:
Teboho Thejane
Departmental Spokesperson
Cell: 082 697 0694
E-mail: Teboho.Thejane@labour.gov.za