in Business

Labour Law Violations Uncovered at Babel and Ocean Basket Restaurants

1.8k Views

Labour Law Violations Uncovered at Babel and Ocean Basket Restaurants

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.

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.

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.

Report

What do you think?

1 Point
Upvote Downvote
Contributor

Written by Siphiwe Dlamini

Name: Siphiwe Dlamini
Location: Johannesburg, South Africa
Occupation: Journalist and Political Analyst

Profile:
Siphiwe Dlamini is a dynamic and passionate journalist and political analyst based in Johannesburg, South Africa. With a unique blend of academic expertise and practical experience, Siphiwe has established himself as a trusted voice in the field of journalism, particularly in political reporting and analysis.

Education:
Siphiwe holds a Bachelor's degree in Journalism, where he honed his skills in investigative reporting, news writing, and multimedia storytelling. Additionally, he pursued a degree in Political Science, deepening his understanding of political systems, international relations, and policy analysis. This interdisciplinary educational background equips him with a comprehensive understanding of the socio-political landscape, enabling him to provide insightful commentary on current affairs.

Career:
Throughout his career, Siphiwe has demonstrated a commitment to journalistic integrity and a relentless pursuit of truth. He has worked for several prominent media outlets, including leading newspapers, television networks, and online platforms. His reporting has covered a wide range of topics, from domestic politics and social issues to international affairs and human rights.

Siphiwe's journalistic endeavors have taken him to the frontlines of major events, where he has provided on-the-ground coverage and in-depth analysis. His ability to contextualize complex political developments and communicate them effectively to diverse audiences has earned him recognition and respect within the industry.

Beyond his work in traditional media, Siphiwe is also actively engaged in public discourse, participating in panel discussions, debates, and academic conferences. He is committed to promoting transparency, accountability, and democratic values through his journalism.

Expertise:
As a political analyst, Siphiwe possesses a keen analytical mind and a nuanced understanding of political dynamics. He is adept at dissecting political rhetoric, evaluating policy proposals, and forecasting future trends. His insightful commentary helps citizens navigate the complexities of governance and make informed decisions about their collective future.

Siphiwe's expertise extends beyond mere reporting; he is also deeply involved in advocacy efforts aimed at promoting press freedom, defending human rights, and fostering democratic governance. Through his work, he strives to amplify marginalized voices, hold power to account, and contribute to the advancement of a more just and equitable society.

In his pursuit of excellence, Siphiwe remains dedicated to upholding the highest standards of journalism and serving as a catalyst for positive change in his community and beyond. With his unwavering commitment to truth, integrity, and social justice, he continues to inspire and empower others to engage critically with the world around them.

Comments

Leave a Reply

Ramaphosa Signs Controversial Education Bill Amid Growing Opposition

Ramaphosa Signs Controversial Education Bill Amid Growing Opposition

1 ZAR to ZMW