The safekeeping and management of employment records play a vital role in the running of a business as well as ensuring compliance.

Section 31 of The Basic Conditions of Employment Act (Act 75 of 1997) stipulates that it is the responsibility of an employer to keep record of at least the following:

  1. The employee’s name and occupation;
  2. The time worked by each employee;
  3. The remuneration paid to each employee.

The employer must keep records for a period of at least three years after termination of employment. 

By keeping record employers can ensure that they abide by stipulated and agreed wages and other basic conditions as well as labour practices.

Labour inspectors must advise employees and employers on their rights and obligations in terms of employment laws. They conduct inspections and investigations into complaints, and they may question individuals, inspect, copy and remove records and other relevant documents. An inspector may also serve a compliance order on an employer who is not complying with the provisions of legislation.

In order to ensure that a compliance order is not issued incorrectly it is of utmost importance to ensure that the labour Inspector has the correct information and records. Again, it is not only an obligation by law to keep records, but it is also critical for the smooth running of a business and to ensure the compliance order is not issued incorrectly by a labour inspector.

When a compliance order is issued an employer needs to comply within the time period stated on the order unless the employer refers a dispute concerning the compliance order to the CCMA within the period during which the employer had to comply.

A referral needs to be sent to all the relevant parties as prescribed by the CCMA before a set down will be arranged during which this order may be turned around with the correct records and calculations.

Should a compliance order be received at any stage, please contact the Invictus office on 0861 737 263 immediately to ensure processes are followed promptly.