South Africa passes national minimum wage bill South Africa passes national minimum wage bill

South Africa passes national minimum wage bill
26 Jun 2018

South Africa's new National Minimum Wage (NMW) bill was finally passed at the end of May – nearly a full month after it was due to come into effect.

The bill sets a minimum wage of R20 (US$1.50) per ordinary hour worked, although this figure will be reviewed within 18 months and adjusted within two years. Assuming a 45-hour week, it equates to R3,900 (US$291) per month.

But many South Africans are now asking how the executive will manage the implementation of the bill.

According to a new commentary note published by VDMA Attorneys, the Department of Labour has said that additional resources will be required to ensure that employers comply with minimum standards. 

But BusinessTech reports, the note indicated that the department does not have enough resources to assign labour inspectors to visit every workplace.

"The director general of the department has outlined a number of strategies to support compliance with the National Minimum Wage. As the first port of call, they expect workers and unions to come forward and inform the department of non-compliance," said VDMA.

It added that there was also an obligation on the employers to ensure that they were in compliance. "Another initiative is what the department calls ‘blitz inspections’, which is an effort to focus on areas which are infamous for non-compliance with labour regulations," VDMA said. "The department will issue compliance orders to those who do not conform to the National Minimum Wage."

The NMW will also be incorporated into the Basic Conditions of Employment Amendment Bill, which also extends the jurisdiction of the Commission for Conciliation, Mediation and Arbitration (CCMA).

"Labour inspectors now have the power to refer disputes relating to non-compliance to the to the CCMA and to appear at the CCMA in these disputes," VDMA said. "The CCMA will have the power to make a compliance order issued by an inspector, an arbitration award, which award will carry the same weight as an order issued from the Labour Court."

 Emma Woollacott

Emma Woollacott is a freelance business journalist. Her work has appeared in a wide range of publications, including the Guardian, the Times, Forbes and the BBC.

South Africa's new National Minimum Wage (NMW) bill was finally passed at the end of May – nearly a full month after it was due to come into effect.

The bill sets a minimum wage of R20 (US$1.50) per ordinary hour worked, although this figure will be reviewed within 18 months and adjusted within two years. Assuming a 45-hour week, it equates to R3,900 (US$291) per month.

But many South Africans are now asking how the executive will manage the implementation of the bill.

According to a new commentary note published by VDMA Attorneys, the Department of Labour has said that additional resources will be required to ensure that employers comply with minimum standards. 

But BusinessTech reports, the note indicated that the department does not have enough resources to assign labour inspectors to visit every workplace.

"The director general of the department has outlined a number of strategies to support compliance with the National Minimum Wage. As the first port of call, they expect workers and unions to come forward and inform the department of non-compliance," said VDMA.

It added that there was also an obligation on the employers to ensure that they were in compliance. "Another initiative is what the department calls ‘blitz inspections’, which is an effort to focus on areas which are infamous for non-compliance with labour regulations," VDMA said. "The department will issue compliance orders to those who do not conform to the National Minimum Wage."

The NMW will also be incorporated into the Basic Conditions of Employment Amendment Bill, which also extends the jurisdiction of the Commission for Conciliation, Mediation and Arbitration (CCMA).

"Labour inspectors now have the power to refer disputes relating to non-compliance to the to the CCMA and to appear at the CCMA in these disputes," VDMA said. "The CCMA will have the power to make a compliance order issued by an inspector, an arbitration award, which award will carry the same weight as an order issued from the Labour Court."

 Emma Woollacott

Emma Woollacott is a freelance business journalist. Her work has appeared in a wide range of publications, including the Guardian, the Times, Forbes and the BBC.

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