Increased labor inspections by authorities raise expert concerns about long-term effectiveness

Authorities are intensifying multi-faceted surprise inspections to combat labor exploitation and ensure compliance with legislation. During these operations, workers without documents have been detained, and employers have been arrested for alleged immigration law violations.

Experts, however, express doubts about the long-term effectiveness of these measures, pointing to issues with resources and strategy.

Compliance with Legislation

South African authorities have intensified highly effective multidisciplinary inspections aimed at preventing labor exploitation and ensuring legality. These actions followed a recent briefing where the Chairman of the National Joint Operational and Intelligence Structure (NATJOINTS), Lieutenant General Tebello Mosikili, announced the government's adoption of a comprehensive enforcement strategy.

Mosikili emphasized that various departments are collaborating to address issues of illegal employment, labor exploitation, illegal migration, and other forms of non-compliance. He reported that 6,317 labor inspectors continue to operate in the country.

These inspections are part of national multidisciplinary surprise operations coordinated by the Department of Employment and Labour. The goal of the inspections is to ensure adherence to labor laws and protect both workers and legitimate businesses.

The Deputy Minister of the Department of Employment and Labour, Jomo Sibiya, led a multidisciplinary inspection in the town of Etkutwini on Friday. He was accompanied by Nkosenhle Madlala, the chairperson of the municipality's committee for governance and human resources.

Madlala reported that during the inspections, 25 Lesotho citizens and two Chinese citizens were found working without valid permits. These individuals were detained and processed in accordance with applicable immigration laws. Furthermore, three Chinese employers were arrested on charges of violating immigration laws.

The Department of Employment and Labour noted that during the inspections, workers were pleased to learn that they were owed payment in accordance with the Minimum Wage Act. Sibiya appealed to the workers not to tolerate exploitation, as it was discovered that workers were not receiving payslips or contracts and were being paid less than the minimum wage.

Labour law attorney, DA member and Portfolio Committee member on Employment and Labour Michael Bagrim, characterized the small number of inspectors as 'a drop in the ocean,' given the more than one million informal and formal enterprises in South Africa. He believes that the chances of achieving any effect in combating non-compliance are 'practically zero.'

Bagrim also pointed to the inadequate equipping of inspectors, as they lack necessary tools such as vehicles, laptops, computers, and smartphones. Moreover, due to a minimal budget for training, they do not receive proper preparation.

He added that involving the police with inspectors is a good idea because of the risks they face. However, the situation remains dangerous, especially in the informal business sector, where it is easier to inspect large formal enterprises than to engage with the informal sector.

Bagrim asserts that, in his opinion, more than 95% of informal enterprises have never seen an inspector. He also notes that the department revealed high levels of labor exploitation, stating that over 70% of workers in South Africa are paid below the minimum wage, and compliance with the Basic Conditions of Employment Act is extremely rare.

In Bagrim's view, surprise raids are never effective because after the first action, all other businesses in the area learn about the impending inspections, hide staff, or tell them to go home. He concludes that such raids are completely ineffective in the long term. The most effective way to ensure compliance is through training personnel and trade unions, who then report violations to the department.

Meanwhile, the department announced that a draft amendment to the Employment Services Act aims to strengthen the management of labor migration, prioritize employment opportunities for South African citizens, protect migrants from exploitation, and increase compliance with labor and immigration laws.

According to the draft, employers will be prohibited from assigning work to foreign nationals that is not sanctioned by their visas, permits, or relevant legislation. The draft introduces significantly harsher penalties for repeat offenders to deter illegal employment. Proposed fines include: 100,000 rand for the first offense, 200,000 rand for the second, and up to 1 million rand or 10% of the company's gross revenue for the third offense. The department stated that this is done to prevent illegal employment and ensure that compliant employers are not placed at a competitive disadvantage.