Menlyn's Babel and Ocean Basket owe staff R1m in underpaid wages

The department of employment and labour says the hospitality industry is one of the high-risk sectors where regular inspections and sting operations will be conducted to deal with non-compliance with labour laws.

This was after minister Nomakhosazana Meth revealed that they had found non-compliance at Ocean Basket and Babel, who owe their employees more than R1m in underpaid wages according to the prescribed minimum wage.

The two Pretoria eateries were named and shamed by the department after a former Babel employee, Mihlali Nobavu, took to social media to make allegations of mistreatment and unfair labour practice by the eatery.

This complaint led to the raid at the restaurant, resulting in the arrest of four people.

The department said in 2023/2024 it had conducted 308,799 inspections and will continue with its work.

"Together with its partners, of conducting inspections especially sting operations in high-risk sectors such as the hospitality industry."

Meth said both Ocean Basket and Babel failed to compensate employees in accordance with the prescribed minimum wage rate for 2024 which is R27.58 per hour.

She said the amount Babel owes the employees due to underpayment is estimated at R271,984.32 for cleaners and R295,547.28 for waiters and waitress, which comes to over half-a-million rand.

"Waiters were remunerated only on commission and tips at Babel restaurant and some were remunerated with as little as R150 per shift, at a maximum of R300 per week, which is far below the national minimum wage.

"The workers at Babel restaurant worked 12 and 15 hour shifts daily, which is in contravention of the daily and weekly rest period provided for in the Basic Conditions of Employment Act.

"At Ocean Basket the waitresses were also remunerated on tips and commissions. The amount the employer owes the employees is R813,969. A combined R1,381,500.60 is owed to the employees of both restaurants," said Meth.

Meth also said that the two eateries had failed to comply with the provisions of the UIF.

She said Babel is not registered with the fund, does not submit monthly declarations of salary information and does not make payments of contribution to the fund.

On the other hand, Ocean Basket is registered with the UIF but does not submit monthly declarations of salary information to it.

“The exploitation of vulnerable workers by employers will not be tolerated in any sector. We take issues of employment and labour matters very seriously,” Meth said.

Babel's HR consultant Itumeleng Kgogome could not comment on the minister's allegations that the company owes workers over R560,000 and the revelations that employees were not registered with UIF.

"The board will meet and discuss [what has come out of the minister of labour] because we are still investigating the matter. Once we are done a statement will be released and shared with you," he said.

He also said the restaurant will rectify allegations of  wrongdoing including  exploitation and give its employees contracts.

"Within five days contracts will be signed, and we will consult with the employees to ensure that they are happy.

"We are trying to make sure that these things are done as quickly as possible and we will make sure that we solve the issues that we have within two weeks or so," he said.

He also said it would appoint an independent body to investigate the allegations without taking a side or employees feeling threatened.

In the video that brought the spotlight onto the two restaurants, Nobavu said she was employed without a contract at Babel and had no basic income.

She said she worked long hours, from 1pm to 2am without a break and had  to share the little tips she received with her runner – a person who helps wait staff to clean tables and serve patrons.

She said the restaurant forced her to buy her uniform and tools of trade and whenever cutlery went missing, they would be fined.

She further posted another video with a screenshot that she said came from Babel management which ordered her to delete the post.

Kgogome denied Nobabu's allegations, saying they are in no business of threatening people but were in the business of entertaining.

"We have never talked to her about that matter. We are not in a place where we enforce things on people to say 'delete this' and stuff like that.

"We have not intimidated her and we want to make sure that next time she is around she can come here or that the points she mentioned are as relevant as they are," he said. - [email protected]

SowetanLIVE