I am sure that most off you are aware of the looming implementation date of the new National Minimum Wage Bill that was passed on the 29th of May 2018, by the National Assembly.
The National Minimum Wage Bill seeks to improve the lives of South African’s falling within the low-income bracket. The Bill proposes minimum wage set at R20 per hour which, based on a 45-hour week equates to R 3 900 per month.
A looming question amongst many South Africans is how the Executive will manage the implementation of the Bill. In May this year Deputy Minister Holomisa of the Department of Labour was questioned on this very concern. He responded by saying that when the Bill is passed, additional resources will be required to ensure that employers comply with the minimum standards. As it stands the Department does not have enough resources to assign labour inspectors to visit every workplace.
The Director General of the Department has outlined several strategies in order 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. There is also an obligation on the employers to ensure that they comply. 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. The Department will issue compliance orders to those who do not conform to the National Minimum Wage.
The National Minimum Wage will be incorporated into the Basic Conditions of Employment Amendment Bill (“the Amendment Bill”). The Amendment Bill seeks to substitute and incorporate new definitions, as well as to provide daily wage payments applicable to certain employees, it 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. 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. The National Minimum Wage Bill and amendments to existing labour legislation seek to improve access to the judicial system for the working poor.
The Bill was signed into an Act of Parliament by President Ramaphosa on Tuesday, 21 August 2018 and rumor in the market has it, that the Act might be implemented as soon as 01 October 2018. Pangea Labour Solutions are keeping a close eye on the developments and will keep our clients informed of the implementation date once confirmed.
Pangea Labour Solutions can assist you with the implementation phase, so do not hesitate to contact us.
I hope this communiqué offers some interesting and informative reading. Please remember, Pangea Labour Solutions is here to advise and assist you through any disciplinary or performance process. Feel free to contact us on helpdesk@pangealabour.co.za for more information on this topic, or any other IR/HR related queries you may have.
* The aforementioned was sourced from www.golegal.co.za.
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