LABOUR INSPECTORS' UNANNOUNCED POWERS - WHAT EMPLOYERS NEED TO KNOW

Written by Janine van Eck

South Africa’s employment environment is both structured and highly regulated. Businesses across all sectors, from retail and hospitality to manufacturing and professional services, operate within a legal framework that promotes fair labour practices, minimum standards, and safe working conditions. Employers, regardless of the size of business, are required to comply with statutory obligations that govern wages, working hours, benefits, health and safety, and sector-specific collective agreements.

Despite this structured framework, many employers remain uncertain about the powers of labour inspectors and council agents and the extent of their authority. A common misconception is that inspections require prior appointments or warrants, or that entry may be refused until it is “convenient.” This misunderstanding exposes businesses to significant risk, including compliance orders, fines, back pay directives, and potential court proceedings.

Labour inspections are not designed to ambush compliant employers but to ensure adherence to minimum standards set out in legislation such as the Basic Conditions of Employment Act (BCEA), the National Minimum Wage Act (NMWA), and applicable Main Collective Agreements. This article explains, in practical terms, the powers of labour inspectors, the role of bargaining council agents, what employers can expect during an inspection, and the legal duty to cooperate when inspectors arrive unannounced.

Labour inspectors from South Africa’s Department of Employment and Labour (DoEL) hold extensive authority to enter workplaces without prior notice or a warrant to monitor compliance with key employment legislation.

These inspections are conducted in terms of the:

• Basic Conditions of Employment Act (BCEA)

• National Minimum Wage Act (NMWA)

• Occupational Health and Safety Act (OHSA)

• Employment Equity Act (EEA)

• Unemployment Insurance Act (UIA)

• Compensation for Occupational Injuries and Diseases Act (COIDA)

As clarified in a May 2024 briefing by Limpopo Province Chief Director Phaswane Tladi, there is a common misconception that inspectors must schedule appointments before visiting a workplace. This is incorrect.

Entry Without Notice

Section 65(1) of the BCEA authorises inspectors to enter any workplace “at all reasonable times,” without notice or a warrant. This includes any premises where work is performed (excluding private homes).

In addition, Clause 11 of the Main Collective Agreement extends similar enforcement authority to bargaining council agents, empowering them to enter workplaces and enforce compliance with the Main Collective Agreement within the relevant sector. This includes monitoring adherence to prescribed wages, benefits, and employment conditions, in the same manner as labour inspectors acting under Section 65(1) of the BCEA.

Once on site, inspectors may:

• Question employees and employers

• Demand records and documentation

• Inspect machinery and equipment (if applicable)

• Copy documents

• Remove items for analysis (if applicable)

• Interview staff privately

The National Bargaining Council for Hairdressing, Cosmetology, Beauty, and Skincare Industry designated agents hold the same powers of entry and questioning as DoEL inspectors. However, while DoEL inspectors focus primarily on BCEA and NMWA compliance, bargaining council agents enforce their sector’s Main Collective Agreement, including gazetted wage scales and benefit fund contributions.

For example, the National Bargaining Council for Hairdressing, Cosmetology, Beauty and Skin Care Industry enforces compliance with its Main Collective Agreement, which includes higher earning qualification-based wage scales, pension fund contributions, and sick pay fund requirements.

Inspector / Agent Identification

All inspectors must carry an official ministerial certificate (BCEA Annexure 14A or 14B), which includes:

• Full name and surname

• ID number

• ID photo (if applicable)

• Authorised legislation

• Scope of duties

• Agent / Inspector serial number

Employers are entitled to verify these credentials before granting access.

Important: Genuine inspectors will never:

• Charge fees

• Sell posters or materials

• Delegate their authority to third parties

Fake inspectors remain a scam risk — always insist on proper identification.

Duty to Cooperate

When conducting an inspection, labour inspectors or agents will first establish who the responsible employer or person in charge of the workplace is. This is usually done by requesting information such as company registration details (CIPC), employment records, staff structures, or by speaking to management on site to identify the person exercising control over the business operations and employment matters. Inspectors must be allowed to perform their duties without obstruction.

In terms of labour legislation, employers have a legal obligation to cooperate with inspections. This includes allowing inspectors access to the premises, answering reasonable questions, and producing records or documents requested for inspection. Refusing entry, withholding information, or obstructing an inspector may constitute a contravention and can result in enforcement action.

The purpose of these requirements is to ensure that inspectors can accurately determine compliance and that employers are given a fair opportunity to demonstrate adherence to applicable labour laws and collective agreements. Refusal to cooperate may result in immediate enforcement action.

Typical Inspection Requests

During an inspection, employers may be required to produce:

• Attendance registers (previous two months)

• Signed employment contracts

• Payslips (two employees for two months)

• Overtime and leave records

• UIF and COIDA registration numbers

• Proof of recent UIF and COIDA payments

• Full employee list (names, ID numbers, contact numbers)

• Displayed summaries of the BCEA, EEA, and OHSA, and any other relevant regulation, and applicable industry collective agreement

• Company registration documents (CIPC or letterhead)

• Occupational Health and Safety inspection requirements (OHSA), as provided by the inspector, which include risk assessments and an OHS certificate of compliance

Inspectors may question employees privately and compare records to verify compliance with minimum wage and statutory conditions.

Enforcement Ladder

Step 1: Written Undertaking

The first step is usually a written undertaking, where the employer agrees to correct non-compliance.

This may include:

• Payment of arrears

• Payment of interest

• Backpay handed directly to employees

• Annual audits

Step 2: Compliance Order (BCEA Section 69 & Clause 10 of the HCSBC Compliance Order)

If the employer refuses to comply, a compliance order may be issued. This document:

• Lists contraventions

• Sets deadlines for correction

• May impose fines

Employers may object to the CCMA within 21 days in terms of the BCEA and within 7 days to the General Secretary in terms of the HCSBC Compliance Order. Failure to comply may result in referral to arbitration or potentially the Labour Court. The goal of inspections is to maintain compliance and good work ethics, not punishment.

Step 3: Employer Tips for Staying Compliant

• Register with DoEL for UIF and COIDA, and your relevant National Bargaining Council

• Understand your industry’s Main Collective Agreement

• Keep records (digital and hard copies) updated and readily accessible for upcoming inspections

Non-compliance can result in fines, enforcement orders, or even imprisonment. In a highly regulated environment, preparation is the safest strategy. Labour inspectors and agents have the legal authority to conduct unannounced workplace inspections. Employers who understand these powers, maintain accurate records, and cooperate during inspections significantly reduce their legal and financial risk.