Labour Compliance - Inspection and Enforcement

As a business owner in South Africa, ensuring total labour compliance is crucial to your company's health. The labour regulations are extensive and stringent, making it easy to miss something, even by mistake. However, failing to comply with labour laws can have seriously adverse financial results on you and your company.

The Department of Employment and Labour can conduct frequent inspections of your workplace to ensure compliance with every outlined labour law. Three kinds of labour inspections exist, which we highlight and explain below.

Basic Conditions of Employment Act

This inspection ensures compliance with the very basic terms and conditions of employment, which employer and employee must sign off on in mutual agreement. The inspector will examine the employment contract, the attendance register, all remuneration information and records, UIF registration and proof of payment, and a complete list of all employee names and ID numbers.

Non-compliance will result in a compliance order which can lead to a financial penalty or imprisonment.

Employment Equity Act

The EE Act inspection relates to the compliance of adherence to eliminating unfair discrimination and equal representation within the workplace. There are various criteria that an employer must follow to successfully ensure EE Act compliance to prove fair treatment and equal opportunity.

Non-compliance relates to a designated employer who can receive a fine for the first offence of R1.5 million or 10% of the annual turnover (whichever is more) with the chance of legal persecution.

Occupational Health & Safety Act

This inspection ensures that your work aligns with health and safety regulations for a safe and secure work environment. The inspector examines the legislative poster, PPE, relevant signage, and the health and safety committee.

Non-compliance can result in the business being temporarily shut down, depending on the severity of the offence. If the inspector discovers non-compliance again, imprisonment and criminal prosecution are likely.

Labour regulations are put in place to protect your employees and ensure a sustainable and safe working environment.

Complying with labour laws is essential to protect your company and remain compliant when inspection rolls around. At KVR Consulting, let us support you in ensuring total labour compliance within your business. For more information,

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