PENALTIES are in place to deal with employers who contravene the National Minimum Wage (NMW) Act. That’s according to the Department of Labou who this week said employers who fail to comply with the act will be shamed – their names will be published the department’s website. Other penalties include compelling non-compliant employers to pay the worker twice the amount that is owed for non-payment.
There will be no hiding as the department is also undertaking a national blitz to assess levels of the NMW Act.
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About 1 392 inspectors will crisscross the country to monitor compliance.
A special focus of the inspection will be on the wholesale and retail sectors as they have been identified as some of the problematic sectors.
“Shaming such employers will ensure they are recognised as people intent on defying the state. This will go on to ensure that they will not be able to do business with government,” said the department’s Chief for Statutory Services Fikiswa Mncanca.
The purpose of the NMW is to advance economic development and social justice by improving the wages of the lowest paid workers, protecting workers from unreasonable low wages, preserving the value of the NMW, promoting collective bargaining and supporting economic policy.
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The Act, which came into effect on 1 January 2019, stipulates that R20 is the minimum rate workers should earn per hour. For farm and forestry workers – it is R18 per hour, domestic workers R15 per hour and for Extended Public Works Programme (EPWP) it is R11 per hour.
These fees will be reviewed annually by the National Minimum Wage Commission.
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