North West Company Shut Down Over Labour Law Violations

Labour Department and Law Enforcement Conduct Blitz Inspection

A company in the North West province has been shut down after law enforcement and the Department of Employment and Labour uncovered serious labour law violations during a blitz inspection.

Deputy Labour Minister Jomo Sibiya confirmed that the factory was found guilty of “non-compliance of the highest order”, with workers exploited and operating in unsafe conditions.

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Workers Paid Below Minimum Wage

The inspection revealed that employees were paid well below the national minimum wage. Some workers earned only R1,800 per month, while others received R900 every two weeks. Even skilled machine operators were paid just R4,000 monthly, far below industry standards.

In addition, staff members did not receive contracts or payslips, and most were not registered for the Unemployment Insurance Fund (UIF) or the Compensation Fund. The company had reportedly not contributed to the Compensation Fund for four years, leaving employees unprotected in cases of workplace injury or death.

Unsafe Working Conditions

Authorities also raised red flags over occupational health and safety violations. Inspectors found untested electrical and gas installations, forklifts that had not undergone safety checks, and workers exposed to hazardous silica dust without protective gear or medical assessments.

“These conditions can cause fatal diseases such as silicosis. Workers’ lives are being put at risk daily,” said Sibiya.

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70 Undocumented Workers Escape

When officials arrived, about 70 undocumented foreign nationals reportedly fled the premises. Witnesses alleged that company owners assisted their escape by using a forklift to help workers climb over fences.

Sibiya condemned the actions, stating that companies engaging in the illegal employment of foreign nationals would face stricter penalties.

Government Crackdown on Noncompliance

The shutdown forms part of a nationwide crackdown aimed at ensuring compliance with South African labour laws, addressing unsafe working environments, and preventing the exploitation of vulnerable workers.

“This is exploitation we can never allow. Employers must comply with the law, and those who don’t will face the consequences,” Sibiya warned.