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Employers face fines per the National Minimum Wage Act
- 29 August 2023
- Accounting
- South African Accounting Academy
The fine will be:
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an amount equal to twice the value of the underpayment or twice the monthly wage, whichever is greater for first offenders, and
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an amount equal to thrice the value of the underpayment or thrice the monthly wage, whichever is the greater, for repeat offenders.
Employers are also warned to refrain from making deductions without the employee/s agreeing in writing or there is a debt specified in the agreement or the deduction is required or permitted by law, collective agreement, court order, or an arbitration award or where a deduction is as a result of loss or damage to reimburse the employer.
Click here to access the Media Statement:
Relevance to Auditors, Independent Reviewers & Accountants:
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The National Minimum Wage Act is yet another piece of legislation that your clients must comply with, and which you must assess compliance with. 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.
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As an auditor, independent reviewer and accountant, you need to consider the latest publications and media statements that are issued by the Department of Employment and Labour.
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As an employer, you also need to comply with the National Minimum Wage Act in your workplace.
Relevance to Your Clients:
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An employer (individual, company or close corporation) has a duty to comply with the National Minimum Wage Act, otherwise, they could be held liable.
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An employer should be aware of the fines that relate to non-compliance.