10 Jul 2018

Some security companies have been said to be violating the Employment Act by paying salaries late after the end of the month.

This was said by Minister of Employment, Labour Productivity and Skills Development Mr Tshenolo Mabeo in a response to a question in Parliament on Thursday. Mr Mabeo noted that 234 cases had been referred for mediation from security companies throughout the country from May this year to date. He explained that the Employment Act enjoined employers to pay salaries, where it was reasonable to do so, within three working days after the end of the month for which wages were due. 

The minister said the main reason often advanced by security companies for failure to pay employees on time was delay in payments by their clients particularly government ministries.

This, he stated was not a reasonable excuse and had been emphasised to owners of security companies, indicating that they had been advised to ensure that they had enough capital to sustain their companies.

Mr Mabeo said the ministry had in the past assisted employees who referred their cases to get their wages, noting that the ministry was in collaboration with the controller of security companies in the Ministry of Defence, Justice and Security to ensure that security companies that did not comply with labour laws have their licenses revoked.

He however pointed out that so far no security company had had its license revoked for failure to comply.

He nonetheless explain that the process to cancel the licenses of some security companies had started, adding that some companies which had pending disputes with the commissioner of labour had had the renewal of their licenses delayed until they had settled their disputes at the commissioner of labour’s office.

Minister Mabeo highlighted that it was worth noting that failure to pay wages was a criminal offence which attracted a fine not exceeding P1 500 or to imprisonment for a term not exceeding 12 months or to both.

He said it was therefore important for employers to pay their employees on time to avoid such penalties that could be a cost to the company.

He urged employees who had not been paid their wages to refer the matter to the commissioner of labour for mediation in terms of the Trade Disputes Act.

Mr Mabeo also pleaded with main contractors to also pay their service providers on time to avoid unnecessary disputes.

MP Edwin Batshu of Nkange had asked if the minister was aware that some security companies paid their employees late thus violating the Employment Act which prescribed that salaries should not be paid later than three days after the agreed date.

He also wanted to know when the unfair labour practice would be stopped. BOPA