Have you received a notification of inspection from the Department of Labour? If not, you may well receive one during 2021, as some of our SEESA clients have already received notice and request for audits.
We have prepared a few pointers to assist your business in preparing for the pending inspection.
Inspections are done in person, by a representative of the Department of Labour, alternatively, communicated and conducted remotely, via email, with a list of documentation being requested, including the following below:
- Copy of the Basic Conditions of Employment Act, and or sectoral if applicable, displayed for staff;
- Attendance Register (minimum period being the prior 2 months);
- A signed employment contract/letter of appointment of an employee or selected employees;
- Information about remuneration (payslips/envelopes), overtime, leave pay and copies thereof;
- Unemployment Insurance, registration number, as well as proof of most recent payments;
- Compensation of Occupational Injuries and Diseases Act (COIDA) registration number as well as proof of the most recent payments;
- A company letterhead (if applicable);
- A copy of the CIPRO Certificate, if applicable (otherwise proof of the company’s trading details);
- A list containing the names and ID numbers of all employees ;
- Copy of application submitted for UIF-COVID-19 TERS during 2020;
- Proof of UIF-COVID-19 TERS payment to employees up to date during 2020;
- Any other documentation that may be requested;
Kindly note that the employer is required to obtain the documentation and submit it directly to the Department of Labour. The Department of Labour will not liaise with the employer’s service provider/s.
A deadline will be provided by the Department of Labour. Kindly ensure that your submission is made timeously and is complete as far as possible in order to facilitate the audit process for both parties.
Failure to comply with the audit and the conditions of the Basic Conditions of Employment Act can result in the employer receiving a compliance notice and potential penalties, with the potential cessation of business pending compliance with the compliance order.
Should you require more information regarding a Department of Labour audit, contact your SEESA Legal Advisor, alternatively, leave your contact details on our website.
About the author:
Carla Delaney is currently working as a Labour legal advisor in the De Aar office.
References:
Basic Conditions of Employment Act 75 of 1997 as amended –including section 69 of the Act regarding compliance orders