The Inspection and Enforcement Services (IES) branch of the Department of Employment and Labour demonstrated exceptional performance during the 2022/23 financial year, surpassing their inspection target by an impressive 105 percent. This notable achievement highlights the Department’s unwavering commitment to sustaining a just, equitable, and compliant labor market in South Africa.
At the Employment Standards conference in Durban, Advocate Fikiswa Bede, Chief Director of Statutory and Advocacy Services, disclosed that out of 312,792 inspected employers, 76% were compliant, while 24% were non-compliant. A staggering 98% of these non-compliant employers were issued enforcement notices.
These inspections evaluate compliance with legislation such as the Employment Equity (EE) Act, Basic Conditions of Employment Act (BCEA), Employment Audit Service (Unemployment Insurance), Employment Payroll Audits (Compensation for Occupational Injuries and Diseases), and the Occupational Health and Safety (OHS) Act.
Impressive Results in Employment Equity Act Inspections
The Department exceeded its target for EE Act inspections by an astounding 142%, conducting 4,725 inspections against a goal of 3,324. Among the inspected designated employers, 55% were compliant, and 45% were non-compliant. A total of 94% of these non-compliant employers were issued Director-General Recommendation/Notices, urging them to comply within the stipulated timeframe.
Non-compliance arose from various factors, such as CEOs not signing appointment letters, insufficient resources and budgets for EE Managers, improper attendance registers, poorly timed analyses, unimpressive progress towards transformation, and failure to implement recommendations.
Near-Perfect Performance in Basic Conditions of Employment Act Inspections
The IES came close to achieving its target for BCEA inspections, attaining 99.49% of their goal. Out of 168,008 workplaces inspected, an impressive 90% were found compliant, while 10% were categorized as non-compliant. Almost all (99%) of the non-compliant employers were issued notices.
Areas of non-compliance included ordinary work hours, overtime, Sunday work payments, maternity leave, employment particulars, record-keeping, remuneration information, cooperation with labor inspectors, deductions, non-payment of the National Minimum Wage, sick leave, family responsibility, annual leave, and payslip discrepancies.
Surpassing Goals in Employment Audit Service (Unemployment Insurance) Inspections
The Department exceeded its target for Employment Audit Service inspections by 116%. Among the inspected employers, 46% were found compliant, while 54% were non-compliant.
Non-compliance with the Unemployment Insurance Contributions Act of 2002 involved issues such as contributions to the Unemployment Insurance Commissioner, refunds, employee deductions, late payment interest, penalties, defaults, and failure to register and submit declarations.
Exemplary Accomplishments in Compensation for Occupational Injuries and Diseases Inspections
Payroll audits for Compensation for Occupational Injuries and Diseases surpassed the target by 108%. Of the total audited employers, 55% were considered compliant, while 45% were found non-compliant.
Primary reasons for non-compliance included failure to register and provide necessary information to the Director-General, poor record-keeping, neglecting to furnish returns of earnings, and employers failing to pay assessments to the Commissioner.
Stellar Performance in Occupational Health and Safety Act Inspections
The IES attained an impressive 111% of its target for OHS Act inspections. Among the inspected employers, 65% were compliant, while 35% were non-compliant. A total of 97% of the non-compliant employers were issued notices to comply within 60 days.
Non-compliance with the OHS Act involved issues concerning general employer duties, inspector powers, incident reporting, general regulation, and electrical installations regulations.
Advocate Bede encouraged inspectors to maintain their boldness and fearlessness in performing their duties, asserting that “average is a failing formula.” Their continued diligence has enabled the Department to achieve a clean audit and recover more than R166 million on behalf of workers. During this period, the Statutory and Advocacy Services Unit received a total of 7,766 cases, referring 6,138 for prosecution.
The outstanding performance by the Department of Employment and Labour’s IES branch underscores their unwavering dedication to protecting workers’ rights and ensuring a fair South African labor market. Through their persistent efforts, they have set a high benchmark for future inspections and serve as a model for others to follow.
