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CWAO welcomes Labour Court ruling against piece work payments

20/02/2025
Publication: CWAO
Author: Press Office

Employers must pay the Minimum Wage

The Labour Court has struck off the roll an urgent application brought by Crown Household (the employer) to continue paying "piece work" wages to five female employees, instead of paying the National Minimum Wage.

These female employees were paid according to how much work they completed. The system was designed in a manner to skirt the legally required practice of paying workers the national minimum wage. In one instance, a worker received only R500 as a salary, after having worked the entire month of December. Many of these women are the sole breadwinners in their household.

Faced with this gross exploitation, the workers approached the Casual Workers Advice Office (CWAO) and Lawyers for Human Rights (LHR) for assistance. CWAO and LHR worked with the workers to bring a case to the CCMA, which we won. The CCMA ruled that Crown Household’s “piece work” system was unlawful. They ordered the employer to pay the workers the money that they were owed in terms of the national minimum wage.

Crown Household then asked the Labour Court to suspend the implementation of the CCMA award. But they failed.

The Labour Court ruled that the application was not urgent. The Court also ordered costs against Crown Household for bringing the frivolous application.

The attorney representing the workers, David Dickinson of LHR, said, “The case illustrates the unfortunate practice by many companies to manipulate the law in order to avoid their legal responsibilities to pay the national minimum wage. Not only is this denying workers their basic rights, but it is also abusing the important role of our courts. The dismissal of the case powerfully illustrates that this malpractice is unacceptable in South Africa today.”

Kayan Leung of LHR said “it is repugnant of employers to abuse a system and exploit working class women who work difficult hours simply with the aim to provide for their families.”

The Labour Court ruling means that Crown Household must now pay the five women workers the money that they are owed in terms of the national minimum wage. This is backpay that covers the span of two years.

This ruling also has positive implications for farm workers, who are often unlawfully paid less than the minimum wage (paid instead of amount of produce picked or packed).

For further information, contact: Thabang Mohlala, Casual Workers' Advice Office paralegal on 082 811 4207

Category: PRESS RELEASE | WORKERS' RIGHTS