Compliance with labour laws

05 August 2022
South African Accounting Academy

Mega blitz inspections started on 20 July 2022 in Potchefstroom, North West.

These inspections are part of a three-day mega-blitz inspection targeting the Road Freight and Logistics, Iron and Steel, and Manufacturing sectors, during which the Department is checking compliance with Labour Legislation such as the Occupational Health and Safety Act, Unemployment Insurance Act, Compensation Fund Act, Basic Conditions of Employment Act (BCEA), and National Minimum Wage Act.

According to the Deputy Minister, employers should not interpret these inspections as yet another government attempt to intimidate them, but rather as one of the government's mechanisms for creating a conducive working environment that benefits both the employer and the employee, as well as the overall growth of the country's economy.

Click here to access the Media Statement:

https://www.labour.gov.za/deputy-minister-of-employment-and-labour-encourages-employers-to-work-with-the-department-so-that-they-can-comply-with-the

Relevance to Auditors, Independent Reviewers & Accountants:

It is vital that your clients comply with Labour Legislation – which includes the Occupational Health and Safety Act, Unemployment Insurance Act, Compensation Fund Act, Basic Conditions of Employment Act (BCEA), and National Minimum Wage Act.
If they don’t comply with the relevant laws and regulations, you have certain reporting obligations in terms of NOCLAR (NOn-Compliance with Laws And Regulations) – this could include reporting to management, qualifying your audit opinion, reporting a Reportable Irregularity, etc. – depending on your role as auditor, independent reviewer, or accountant.
As an employer, you also need to comply with Labour Legislation in your workplace.

Relevance to Your clients:

An employer and entity (company or close corporation) has a duty to comply with Labour Legislation – which includes the Occupational Health and Safety Act, Unemployment Insurance Act, Compensation Fund Act, Basic Conditions of Employment Act (BCEA), and National Minimum Wage Act, otherwise they could be held liable.

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