Labour on national minimum wage exemptions

National minimum wage exemptions could be withdrawn if there is non-compliance - Department of Labour

The Department of Labour will reserve the right to withdraw National Minimum Wage (NMW) exemptions granted to employers that violate the spirit of the law.

Briefing employers on the National Minimum Wage exemption process held at Namakhoi Municipality Hall in Springbok, Northern Cape, Department of Labour Deputy Director, Employment Standards, Matilda Bergmann told employers that the granting of exemptions was conditional on fulfilling a set of requirements and openness.

Bergmann cautioned employers that exemptions can be withdraw if: an employer does not comply with a notice granting exemptions, employer has provided false or incorrect information, employer's financial position has improved to the extent that the employer is able to pay NMW, and that there are justifiable grounds for withdrawal.

She said in the case of a withdrawal of an exemption, parties to the agreement will be consulted.

The department's draft regulations on the MWW exemption process, said Bergmann: Are ready for comment, but we cannot publish before the enactment of the legislation.''

She further told the employers that the Department of Labour information technology system to make provision for employers to apply for exemptions could be delayed as it was dependent on the enactment of the National Minimum Wage Bill.

The system was scheduled to go on-line by the end of this month.

The system will require the employers' particulars which will include full name of the employer, UIF reference, COIDA number, SARS number, company registration number, nature of business conducted, bargaining council details, address, personal and contact details.

Before granting exemptions, the system will also subject employers to an affordability analysis focusing on liquidity status, profitability and solvency position.

The next employer briefing session will be held tomorrow at Dawid Kruiiper Municitpality, Tolspeelman Community Hall, near Corner Keimoesweg and Clarkweg.

This will be followed by more briefing sessions in the Eastern Cape, Mpumalanga, Limpopo and the Free State.

The sessions start at 10am and end at 1pm.

Source: Government of South Africa