ARTICLE
3 September 2024

The Tidal Wave Of Uncertainty With Compliance Orders

CE
Consolidated Employers Organisation

Contributor

The Consolidated Employers’ Organisation is a prominent South African membership-based employers’ association that assists businesses to navigate labour disputes and collective bargaining at the Commission for Conciliation, Mediation and Arbitration (CCMA) and various Bargaining Councils on a national scale - through direct representation, professional support, proactive engagement and training mechanisms.
As an employer, you may have felt overwhelmed after discovering your business on a Labour Inspector's "most wanted" list, receiving a compliance order, and struggling to find guidance.
South Africa Compliance

As an employer, you may have felt overwhelmed after discovering your business on a Labour Inspector's "most wanted" list, receiving a compliance order, and struggling to find guidance.

With CEO on your side, those days of uncertainty are over! We'll help you transform that tidal wave of uncertainty into a manageable task. Armed with our expertise, you'll greet the next Labour Inspector with confidence and a positive outlook.

A compliance order begins with a Labour Inspector visiting your workplace for an inspection. Under the Basic Conditions of Employment Act 75 of 1997 (BCEA), specifically Chapter 10, Section 69, the Minister of Employment and Labour has the authority to appoint public service personnel or bargaining council agents as Labour Inspectors.

These inspectors can advise both employees and employers on their rights and responsibilities. They are empowered to inspect records mandated by the BCEA, investigate employee complaints, and ensure compliance by obtaining an undertaking from the employer or issuing a compliance order.

A Labour Inspector can enter your premises without a warrant at any reasonable time to ensure compliance with the BCEA. Therefore, it is crucial for employers to request and verify the credentials of any Labour Inspector to fully understand their powers and ensure proper compliance.

Section 69(2)(d) suggests that a Labour Inspector should first seek a "written undertaking" from the employer as a softer approach to encouraging cooperation and avoiding issuing a compliance order. Failure to cooperate may lead to imposing a compliance order, a stricter measure that signals the potential for even more severe actions.

According to Section 69(2), a Compliance Order must include:

  1. The employer's name.
  2. The locations of all relevant workplaces.
  3. Specific BCEA provisions the employer has violated, with details of the non-compliance.
  4. Any amounts the employer must pay or steps required.
  5. The maximum fine that could be imposed.
  6. The deadline for compliance.

Due to the limited timeframe for employers to dispute a compliance order, seeking assistance as soon as you receive one is crucial. Acting on this promptly demonstrates transparency and seriousness, facilitating a productive engagement with the Labour Inspector. This proactive approach can help employers avoid unnecessary penalties and may even lead the Labour Inspector to waive certain fines or penalties despite having the authority to impose them.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.

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