Inspectorate urged to be bold as the Department’s Inspections and Enforcement Services exceeds its targets. Only 76% of inspected employers were found compliant and 24% were non-compliant.

Employment and Labour Inspections: Target exceeded for 2022/23 financial year

Inspectorate urged to be bold as the Department’s Inspections and Enforcement Services exceeds its targets.

The Department of Employment and Labour’s Inspection and Enforcement Services (IES) branch exceeded its target of inspections achieving a 105 percent rate for the 2022/23 financial year.

Department of Employment and Labour Chief Director of Statutory and Advocacy Services, Advocate Fikiswa Bede said that out of the 312 792 inspected employers, 238 233 (76%) were found compliant and 74 559 (24%) were non-compliant. She said out of 74 559 of the non-compliant employers 72 898 were issued with enforcement notices. This constitutes 98% of notices issued to non-compliant employers.

Bede unveiled the numbers during a Department of Employment and Labour’s Inspection and Enforcement Services branch – Employment Standards conference held in Durban at Olive Convention Centre. The theme of the conference is: “Accelerating Compliance of an equitable South African Labour Market”. The conference ends on Friday.

The focus of inspections relates to legislation such as: Employment Equity (EE) Act, Basic Conditions of Employment Act (BCEA), Employment Audit Service (Unemployment Insurance), Employment Payroll Audits (Compensation for Occupational Injuries and Diseases), Occupational Health and Safety (OHS) Act.

In terms of the EE Act the target was 3 324 inspections and 4 725 inspections were conducted which constitutes 142%. Of the total inspections conducted 2 578 designated employers were found to be compliant and this number constitutes 55%. A total of 2 147 (45%) of the designated employers who were inspected were found non-compliant and 2 016 (94%) of them were issued with Director-General Recommendation/notices with which to comply within the required time period.

The areas of non-compliance with EE Act relate to an appointment letter not signed by the CEO, EE Managers not appointed with the required resources and budget, attendance registers not indicating the designated groups represented by the committee members, analysis conducted post the development of the EE plan, EE plans do not show reasonable progress towards transformation in line with goals and numerical targets set by employers and failures to implement recommendations.

For BCEA there were 168 008 workplaces inspected against a target of 168 864 which constitutes 99.49% of the targeted inspections. Out of the 168 008 workplaces inspected, 151 345 (90%) were found to be compliant and 16 663(10%) were classified as non-compliant.

A total of 16 463 non-compliant employers were issued with notices and this makes 99% of the non-compliant employers. The areas of non-compliance in regard the BCEA include: ordinary hours of work, issues on overtime, pay for work on Sundays, maternity leave, written particulars of employment, keeping of records, payment of remuneration, information about remuneration, powers to question and inspect, co-operation with labour inspectors, payment of remuneration, deductions and other acts concerning remuneration, non-payment of National Minimum Wage, sick leave, family responsibility, annual leave, , payslip and written particulars of employment.

For Employment Audit Service (Unemployment Insurance) a total of 20 649 audits were conducted against a target of 17 856 which constitutes 116% checks. Of the 9 573 (46%) employers audited were found compliant and 11 076 (54%) were found to be non-compliant.

The areas of non-compliance with the Unemployment Insurance Contributions Act of 2002 were: contribution to Unemployment Insurance Commissioner and refund, deductions of employees’ contributions, interest of late payment, penalties and default, failure to register, and submit declarations.

In the area of Compensation for Occupational Injuries and Diseases a total of 9 946 payroll audits were conducted against a target of 9 204 which constitutes 108% of the audits conducted. A total of 5 507 (55%) employers of those audited were classified as compliant and 4 439 (45%) were non-compliant and.

For Compensation for Occupational Injuries and Disease Act non-compliance was mainly around: failure to register and furnish particulars with the DG, failure to keep records, failure to furnish returns of earnings, and employers failing to pay assessments to the Commissioner.

In the OHS Act the inspectorate conducted a total of 109 464 workplaces inspections against a target of 98 856 which constitutes 111% of inspections. Of the 71 655 (65%) employers of those inspected were classified as compliant and 37 809(35%) employers were found non-compliant and a total number of 36 487 (97%) of those non-compliant employers were issued with notices to comply within 60 days.

For OHS Act the areas of non-compliance related to general duties of employer to employees, special powers of inspectors, reporting of certain incidents to an inspector, general Regulation and Electrical Installations Regulations.

Bede urged inspectors to be bold and not be scared when performing their duties. She said: “average is a failing formula”.

“That safety regulations, Environmental Regulations for Workplaces, General Machinery we have exceeded our targets, we managed to assist the Department to get a clean audit,” Bede said.

Meanwhile, the Department’s Statutory and Advocacy Service Unit has managed to help the Department recover more than R166 million on behalf of workers. Statutory and Advocacy Services also received a total of 7 766 cases and referred 6 138 for prosecution.

– The views expressed herein are those of the author and do not necessarily reflect those of Estome Publications. Estome Publications accepts no responsibility for the accuracy, completeness or fairness of the article, nor does the information contained herein constitute advice, legal or otherwise.

– This article originally appeared in gov.za on 20 September 2023

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