Firstly, What is a compliance order?
A compliance order is an order that the Department of Employment and Labour seeks to enforce due to an accusation whereby an employer is not compliant with statutory provisions, For example, an employer who fails to compensate an employee.
Once the employer receives the compliance order from the Department of Employment and Labour, the employer now has a choice to determine as to how they deal with the matter presented to them
The employer has two steps available to them:
- The employer can choose to comply with the order.
- The employer can oppose the compliance order which was served on them
Opposing a compliance order:
If the employer chooses to oppose the compliance order he/she will be granted five days subject to the Basic Conditions of Employment Act in which to serve and file an affidavit with the Department of Employment and Labour asserting why the employer disputes the compliance order as well as set forth the defence of himself. The employer may also refer a dispute in terms of Section 69(5) of the Basic Conditions Of Employment Act to the CCMA before the due date of compliance.
After this the dispute gets referred to the CCMA by the employer in order to determine whether there is a valid motive for opposing the compliance order however it is strongly recommended that employers do not lead a defence that does not exist as the commission has the authority to declare the employer to pay a fine additional to any money which could possibly become due and payable as per the compliance order.
Authority is given to the Director-General of the department should the employer not act on the compliance order for a period of 14 days, this means that the Director-General may apply to the CCMA to make the compliance order an arbitration award whereby the award becomes enforceable against the employer.
As taken from the above the crux of the matter is that time is the most crucial aspect when dealing with a compliance order.
We strongly suggest that the employer contacts Duvenage Attorneys once they receive a compliance order so that we can offer professional and sound legal advice.