In a recent operation led by the Directorate for Priority Crime Investigation (Hawks), Home Affairs, the Department of Labour, and officials from the Bargaining Council, several issues concerning non-compliance with labour regulations were uncovered at two prominent eateries. The Sunday night raid revealed breaches at Babel Restaurant and Ocean Basket, both failing to comply with the provisions of the National Minimum Wage Act.
Both establishments, known for their upscale dining experiences, were found to have paid their employees below the mandated minimum wage. Babel Restaurant, located in the affluent Menlyn area, failed to pay its employees the prescribed hourly rate of R27.58 for 2024/25.
In a formal statement, the Minister of Employment and Labour, Nomakhosazana Meth, confirmed that Babel owed its employees significant back wages. The restaurant had underpaid its cleaning staff by approximately R271,984 and its waitstaff by R295,547. These amounts were based on an investigation into their non-compliance with the wage requirements.
“Waiters at Babel Restaurant were being paid solely through commission and tips,” Meth explained. “In some cases, workers received as little as R150 per shift, earning no more than R300 per week, which is well below the National Minimum Wage.”
Additionally, it was found that employees worked shifts lasting between 12 and 15 hours per day, violating the Basic Conditions of Employment Act, which regulates daily and weekly rest periods.
There’s a restaurant in Menlyn that’s killing South African employees
💔💔💔💔💔💔💔💔
Babel in Menlyn needs to be investigated! 😭😭😭😭😭😭😭Samthing Soweto | Mas Musiq #pravingordhan friday 13th | Bela Bill pic.twitter.com/s8BluhurvW
— Patience (@officialtwinny) September 13, 2024
The investigation into Babel was sparked by a whistleblower, a former waitress, who shed light on the exploitative practices employed by the restaurant. She reported that staff members were required to purchase their own uniforms and equipment, including essential items such as bottle openers, lighters, and cigar cutters. The whistleblower also revealed that employees received no basic salary and had to pay a non-refundable “breakage fee” of R200 each day.
Ocean Basket, another well-known restaurant chain, was similarly found to have violated labour laws. Waitresses there were also paid on a commission-only basis with no guaranteed salary. The total amount of unpaid wages owed to Ocean Basket employees was calculated at R813,969.
“A combined total of R1,381,500.60 is owed to the employees of both Babel Restaurant and Ocean Basket,”
stated Thobeka Magcai, spokesperson for the Ministry of Employment and Labour.
Further investigations revealed that Babel Restaurant had not complied with key sections of the Unemployment Insurance Act. According to Magcai, Babel was not registered with the Unemployment Insurance Fund (UIF) and had failed to submit monthly salary declarations. Additionally, the restaurant did not make the required contributions to the UIF on behalf of its employees.
Ocean Basket, while registered with the UIF, had not submitted its monthly salary declarations either. Moreover, the restaurant had failed to submit its return of earnings for 2023 and owed the Compensation Fund R72,000. It was also disclosed that Babel Restaurant was not registered with the Compensation Fund and had not filed any returns since it began operations in June 2024.
The joint operation led to several arrests. Three individuals were taken into custody, including two undocumented foreign nationals working at Babel Restaurant, their employer, and another undocumented worker employed by a food delivery service collecting an order at Ocean Basket.
Yesterday we where at Babel restaurant in Menlyn Inner City East, Tshwane. Visiting the management. As issues of compliance, working conditions, and labour laws were raised by former workers. We reported everything to the authorities, and we where informed that within 24-48 hours… https://t.co/4dtZwfz3BC pic.twitter.com/6ugaChYYce
— Toko Masemola (@TokoMasemola) September 15, 2024
The inspection team was headed by Acting Director General Viwe Mlenzana and included officials from the Department of Home Affairs Immigration, the Bargaining Council, and the Hawks.
Minister Meth strongly condemned the exploitation of workers and urged employees facing unfair treatment to report such incidents.
“The exploitation of vulnerable workers by employers will not be tolerated in any sector,” she stated.
Meth also encouraged employees to report unfair labour practices at their nearest Labour Centre, assuring that these matters would receive urgent attention.
“We take issues of employment and labour matters very seriously,”
she added.
The EFF also visited Babel Restaurant to investigate and address allegations of worker exploitation, including underpayment, unsafe conditions, and absence of formal contracts.
