27 Jul 2017

Minister of Employment, Labour Productivity and Skills Development, Mr Tshenolo Mabeo says his ministry is not aware of youth exploitation in the hotel and restaurant industry.

Mr Mabeo said employers were obliged to pay employees wages as subscribed by the Employment Act: Cap 47:01, adding that  it was unlawful for employers to pay employees money only accrued from tips.

He further stated that section 2 (1) of the same act defined minimum wage as “the wage fixed by the relevant minimum wages order.”

He noted that it was the lowest amount that an employer could pay to the employees as wages at any given point in time.

However, Mr Mabeo said the employer was at liberty to pay more than the set minimum wage rates, including payment of any benefits like tips.

Mr Mabeo said the minimum wage rates were set in accordance with the Employement Act to protect employees from exploitation by employers.

He said the rates were reviewed on an annual basis and recommended to government, labour, business and independent members.

He added that according to the Employment Act, the minimum wage regulations also applied to the hotel and restaurant sectors.

He noted that the current rate was P5.46 per hour, and that an employer who paid an employee less than the minimum wage was guilty of an offence as per section 132 (2).

“The employer shall be liable to a fine not exceeding P2 000 or to imprisonment for a term not exceeding 18 months, or to both in terms of section 151 (d) of the same act,” Mr Mabeo stated.

He urged any employee subjected to a payment of wages lower than the minimum wage to report so that perpetrators could be prosecuted.

Furthermore, the minister added that tips did not form part of an employee’s basic pay.

He, however, said the employer and employee were at liberty to agree on an arrangement for money collected as tips.  He said his ministry was continuously conducting labour inspections to ensure that employees were not exploited.

He also stated that the ministry undertook public education campaigns including employer/employee workshops on the obligations under labour laws.  

Specially elected MP, Ms Bogolo Kenewendo had asked the minister if he was aware of youth exploitation in the hotel and restaurant sector, and whether it was legal for employees in the sector to  survive without base wages and only depend on tips.  

She also asked if he was aware that some companies did not give employees tips paid by card and whether this was legal, if so, what was he doing to reduce exploitation. ENDS