Common Labour Law Violations and How to Stay on the Right Side of the Law
Running a business in South Africa Running comes with a long list of responsibilities and one of the most important is ensuring your company complies with labour legislation. Even with the best intentions, it’s easy to make mistakes that could land your business at the CCMA or facing penalties.
Here are a few common labour law mistakes businesses make, and some practical tips to help you avoid them.
- Incorrect or No Employment Contracts
Many employers do not have employment contracts in place or still use incorrect employment contracts that fail to meet the basic requirements in line with legislation. Contracts must be in line with BCEA or depending on the industry, in line with Sectoral Determinations or Main Collective Agreements. Failure to comply can lead to disputes or claims at the CCMA.
- Paying Below the Minimum Wage or Incorrect Rates
Whether it is not applying the National Minimum Wage, wages as set out in Sectoral Wage Determinations or wages as set out in Main Collective Agreements, underpayment is a serious violation. This includes incorrect pay for Sunday work and public holidays.
- Skipping Proper Disciplinary Procedures
Dismissals without a fair procedure even for valid reasons can cost you at the CCMA. Many employers don’t realise that both the process and the reason need to be fair.
- Mismanaging Leave
Annual, sick, family responsibility, and maternity leave must be correctly calculated and granted.
- Not Registered with Statutory Bodies
Certain industries fall under specific Bargaining Councils. A Bargaining Council is a statutory body established under the Labour Relations Act (LRA). Employers must comply in the event of an employer’s business operating in an industry covered by the Main Collective Agreement of a Bargaining Council or the Council’s Main Collective Agreement has been extended by the Minister of Labour to cover non-party employers in that sector.
Labour law compliance isn’t just about ticking boxes — it’s about creating a workplace that’s fair, legally sound, and built to last. A small oversight today can turn into a big issue tomorrow. Rather be proactive and get the right advice before problems arise.
If you’re unsure where to start, contact SDC Consult to help you review your policies, contracts, and practices. It’s a small investment that can save your business a lot in the long run.
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