Employers who try to cheat the minimum wage exemption system will be prosecuted.
DURBAN – The Department of Labour is cracking down on employers who cheat on the National Minimum Wage exemption system.

And one employer who came to the attention of the department is already in trouble and is about to face prosecution for alleged fraud.

The National Minimum Wage Act makes provision for an employer who cannot afford to pay the R20-an-hour wage to apply for an exemption.

After a complaint that a Joburg business was displaying an exemption notice showing a rate of R16 the department carried out an investigation. 

It revealed that the employer had applied for and been granted an exemption. The rate of exemption was R18 an hour, not R16. The employer later said that the R16 rate had been “erroneously displayed and used to calculate employees’ wages”. The department is now pursuing a case of alleged fraud and it is withdrawing the exemption notice.