The total amount owed to Menlyn’s Babel and Ocean Basket restaurants is R1,381,500.60.
The Department of Employment and Labour has announced a four-day, multi-departmental inspection blitz of the hospitality sector, specifically restaurants, following allegations of non-compliance with South African labour laws at Babel restaurant in Menlyn, Pretoria.
This comes after Babel was investigated for labour law violations, which sparked widespread concern.
The establishment was exposed on TikTok by one of its former employees Mihlali Nobavu who alleged that the company ill-treated and exploited its employees.
Inspection blitz details
The four-day inspection blitz, led by the Department’s Chief of Occupational Health and Safety, Milly Ruiters, will involve 1,984 personnel.
The operation will collaborate with the South African Police Service (SAPS), the Department of Home Affairs and the bargaining council.
Ruiters said there was nothing unique about the blitz except that the restaurant sector was becoming problematic.
Inspectors will focus on Basic Conditions of Employment Act (BCEA) compliance, Occupational health and safety, Unemployment Insurance Fund (UIF), the Compensation for Occupational Diseases Act (COIDA), and the National Minimum Wage Act.
The results of the inspections will be shared starting Wednesday.
Babel restaurant under fire
The Minister of Employment and Labour Nomakhosazana Meth on Monday confirmed that Babel’s employees were underpaid.
Some of them received as little as R150 per shift, far below the national minimum wage of R27.58 per hour.
Aside from being financially exploited, the workers also worked 12-15 hour shifts daily, contravening the BCEA.
The investigation revealed that the employer owes employees R271,984.32 for underpayment of its cleaners and R295,547.28 to waiters and waitresses.
“Waiters were remunerated only on commission and tips at Babel Restaurant and some were remunerated with as little as R150 per shift, at a maximum of R300 per week, which is far below the National Minimum Wage,” said Meth in a statement.
Arrests and fines
The minister confirmed that four people were arrested.
Of the four were two undocumented foreign nationals working at Babel, and their employer, as well as one undocumented foreign national working for Mr Delivery.
The employer’s non-compliance extended to Ocean Basket, another restaurant, which owes employees R813,969.
“At Ocean Basket, the waitresses were also remunerated on tips and commissions,” Meth revealed.
The total amount owed to employees of both restaurants is R1,381,500.60.
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Labour law violations
Inspectors found Babel and Ocean Basket non-compliant with various labour laws.
The restaurant failed to compensate employees according to the National Minimum Wage Act and was not registered with the Unemployment Insurance Fund (UIF).
“Babel Restaurant was found non-compliant with section 56 (1) – (3) of UIA in that, the employer is not registered with the fund, does not submit monthly declarations of salary information, and does not make payments of contribution to the fund.”
Additionally, Babel also failed to submit monthly declarations and payments to the UIF, and was non-compliant with the Compensation for Occupational Injuries and Diseases Act (COIDA).
The restaurant also failed to provide safe working conditions.
While Ocean Basket was registered with the UIF, it failed to submit monthly declarations of salary information to the Fund. It also omitted to pay annual assessments to COIDA.
Furthermore, Ocean Basket failed to submit its return of earnings for 2023 and owes the Compensation Fund R72,000.
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Minister’s response
Meth, strongly condemned the exploitation of workers.
“The exploitation of vulnerable workers by employers, will not be tolerated in any sector. Members of the public who may be facing unfair labour practices are encouraged to report such incidences to the nearest Labour Centre, as matters of this nature will receive our urgent attention. We take issues of employment and labour matters very seriously,” she stated.
