Sello Motseta
31st May 2020
Many multinational companies refusing to comply with Government directives to avoid retrenchments during the COVID-19 period or to refrain from compelling employees from taking enforced leave owing to the difficulties occasioned by the outbreak will only be hit with a derisory slap on the wrist.
Government officials continue to remain non committal about implementing tough measures to compel offending companies to toe the line. This ambivalence in approach is reflected in tone of the Minister of Investment, Trade and Industry who was evasive when pressed to take decisive action.
It has also since emerged that despite assurances government was tackling culprits they are constrained because in terms of section 151 of the Employment Act, penalties for offences under Act include fines not exceeding P500.00 or on default of payment to imprisonment for a term not exceeding one month.
“The problem is that the laws are very weak. If you fine companies making profits of at least P5million annually with P500.00 it is nothing. They will continue to do as they see fit moreso because the Trade Disputes Act is very tedious and it takes a long time to go to court,” said Dimpho Nyambe, Secretary General of the cashiers, Shop, Assistants and Allied Workers Union(CASAWU).
He said, “We have had cases where we had to go to mediator and the employer refused to co-operate on matters that were very straightforward like on overtime or leave. The mediator has no power to enforce compliance.”
Nyambe said that for employees to pursue grievances with employer they had to appear for mediation and are only slowed to proceed to court where there is a failure to settle. It allegedly takes on average about a year to for the matter to be heard before the industrial court.
The maximum sentence shall be liable to a fine not exceeding P1 000 or to imprisonment for a term not exceeding six months or to both. There is also provision for fines not exceeding P1 500 or imprisonment for a term not exceeding 12 months or to both. The harshest penalty is a fine not exceeding P2 000 or to imprisonment for a term not exceeding 18 months or to both.
According to officials from the Ministry of Employment, Labour Productivity and Skills Development they have been able to resolve 1036 of 1229 enquiries submitted to them. It is alleged that 18 need further investigations and 175 of the cases have been referred to other authorities for resolution.
It has also been revealed that the Ministry of Investment, Trade and Industry, in liaison with Companies and Intelluctual Property Authority(CIPA) has decided to extend the re-registration period by 6 months up to 2nd December 2020 beyond the initial deadline of 2nd June 2020 owing to challenges caused by COVID-19 period. To date CIPA re-registered 35% of companies and 5% business names.
Government also revealed that the Trade Act, 2019 and the Industrial Development Act, 2019 have been reviewed as part of the Doing Business Reforms. The revised Acts introduces key reforms like abolishing ex-ante inspection of premises for trades that do not pose threat to public health and safety.
Trade which does not have an immediate health and safety concern will be registered by the Director of Trade like wholesale, general clothing, general dealer, cellphone shop, hardware, household shop, distributor, driller, furniture shop, supermarket and department store.
Industrial activities with health and safety considerations will require licensing such as animal feed, baby formulae, food beverages, cement, chemical products or any product that the Minister may prescribe.
A total of 17 trade licences are reserved for citizens under the Act such as car wash, curio shop, general dealer, general hire, internet café/copy shop, florist, fresh produce, funeral parlour, hair or beauty parlour and takeaway.
Persons will also not be allowed through the Control of Goods, Prices and Other Charges Act be allowed to import a cloth face mask without a permit and a person contravening these regulations commits an offence and is liable to a fine of P5,000 or imprisonment for a term not exceeding 6 months.
A decision has also been taken to allow for sale of alcohol under restricted conditions at bottle stores, wholesalers, liquor distributors, bars, restaurants, liquor depots, hotels and casinos.
“However the sale of traditional beer under schedule 3 of the Liquor Act 2008, will only take effect after 3 months to allow for consultation with Dikgosi and other stakeholders, as well as develop new regulations for the sale of traditional beer,” said Peggy Serame, Minister of Investment, Trade and Industry.
She said, “All establishments must adhere to the protocols prescribed in the regulation: washing of hands, sanitizing, adhering to social distancing protocols, wearing of masks for employees and customers, taking temperatures and keeping a register of wall who visit the establishment.”
The sale of licensed alcohol will be allowed on Wednesday to Friday from 10:00hours to 18:00hours and Saturday from 10:00 to 16:00 hours. All sales will be on a takeaway basis only except sit in restaurants. If not in a restaurant, consumers will drink alcohol at home only.
Businesses that do not observe all COVID-19 protocols will be subject to stiff penalties which include immediate suspension/revocation of licences and such businesses shall not be allowed to reapply for a licence for a period of 12 months.
