Compliance with minimum wages : a South African legal perspective

Date
2021-03
Journal Title
Journal ISSN
Volume Title
Publisher
Stellenbosch : Stellenbosch University
Abstract
ENGLISH ABSTRACT: Globalisation has increased competition and resulted in various advancements of human life. However, it also has negative consequences, such as stagnating lower spectrum wages that occur despite increased labour productivity. Stagnating lower labour market wages that coincide with progressive top hierarchy wages result in excessive income inequality that presents detrimental consequences on various microeconomic and macroeconomic levels. Wages are the most common earnings of people and is therefore used within a regulatory framework to establish a minimum wage to address excessive income inequality. The utilisation of minimum wage is especially relevant in the South African context with its unequal labour market – one of the worst in the world – that undoubtedly played a role in introducing the SANMW. A threat to reaching the objectives of the SANMW and other minimum wage policies in other nations is the lack of compliance with minimum wage (that may be) exacerbated by non-compliance in developing countries. Establishing a legal minimum wage is important, but equally important is compliance/obedience to it. Without compliance, legal provisions may arguably only be of academic value and limited to paper. This thesis considers the compliance with minimum wage from a legislative viewpoint by deliberating three research questions. Firstly, how is minimum wage compliance pursued and achieved through the South African legal framework by considering three elements: being the coverage of minimum wage, the determination of minimum wage, and the legal enforcement of minimum wage and the sanctions/remedies for non-compliance. Secondly, what weaknesses in legal regulation can be identified, and based thereon, what recommendations can be made for more effective regulation and implementation of a minimum wage in South Africa? Thirdly, what lessons good and bad can be learned from the comparative foreign national legal minimum wage compliance frameworks of Australia and the United Kingdom? In answering the research questions, the concept of inequality is further examined, particularly in the South African context, before considering statutory/regulatory measures intended to address inequality in the labour market. The international legislative minimum wage compliance framework is established as a benchmark before considering the South African minimum wage compliance framework. Possible weaknesses are identified, followed by applicable recommendations. The legal minimum wage compliance frameworks of Australia and the United Kingdom are analysed. These nations arguably present respectable well-established minimum wage compliance frameworks that may act as a point of reference to other nations. Based on this comparative analysis, best and worst practices of the foreign jurisdictions are established before providing an effective legal minimum wage compliance framework.
AFRIKAANSE OPSOMMING: Wêreldinkrimping verhoog arbeidsmededinging en lei tot gunstige wendinge in die mens se alledaagse bestaan. Dit het egter ook negatiewe gevolge – soos ’n stagnante laeloonskaal ten spyte van verhoogde arbeidsproduktiwiteit. Die stagnering van laer lone in die arbeidmark in teenstelling met toenemende hoër lone van die topsloonskaalhiërargie bevorder en beklemtoon inkomste-ongelykheid wat verskeie nadelige gevolge op mikro- en makro-ekonomiese vlak het. Lone is die algemeenste bron van inkomste wat minimumloon binne ʼn gereguleerde raamwerk kan vestig met die doel om uitermatige inkomste-ongelykheid teë te werk. Minimumloon is veral relevant in die Suid-Afrikaanse konteks waar die ongelyke arbeidsmark die meeste ander ongelyke arbeidsmarkte in die wêreld oortref. Hierdie ongelykheid in die arbeidsmark het sonder twyfel ʼn rol gespeel om die Suid-Afrikaanse nasionale minimumloon te bewerkstellig. ʼn Bedreiging tot die verwesenliking van die doelwitte van die Suid-Afrikaanse nasionale minimumloonbeleid en diverse minimumloonbeleid in onderskeie lande is die gebrek aan die toepassing daarvan (wat) vererger (word) deur nienakoming van ʼn ooreenstemmende relevante minimumloonbeleid in ontwikkelende lande. Die vestiging van ʼn minimumloonbeleid is noodsaaklik, maar ewe noodsaaklik is die toepassing en nakoming daarvan. Sonder toepassing en nakoming is wetlike voorskrifte moontlik slegs van akademiese belang. Hierdie studie oorweeg die toepassing en nakoming van ʼn minimumloonbeleid vanuit ʼn wetlike oogpunt aan die hand van die volgende drie navorsingsvrae: Eerstens, hoe kan die Suid-Afrikaanse regsraamwerk ʼn minimumloonbeleid in werking stel en nakoming daarvan verseker en handhaaf? Oorweging word gegee aan drie elemente, naamlik die strekwydte van minimum lone, die vasstelling van minimum lone en die wetlike handhawing van minimum lone sowel as gesanksioneerde remedies vir nienakoming. Tweedens, watter gebreke in regsregulering kan geïdentifiseer word, en gebaseer daarop, watter aanbevelings kan gemaak word vir doeltreffender regulering en implementering van minimumloon in Suid-Afrika? Derdens, watter lesse is daar te leer uit die ooreenstemmende nasionale regstelsels vir nakoming van minimumloon van die Verenigde Koningryk en Australië? In die beantwoording van die navorsingsvrae word die konsep van ongelykheid verder ondersoek, spesifiek in die Suid-Afrikaanse konteks, voordat daar oorweging gegee word aan die statutêre/regulatoriese maatreëls wat ten doel het om ongelykheid in die arbeidsmark onder die loep te neem. Die internasionale wetlike nakomingsraamwerk vir minimumloon word bepaal alvorens ʼn ooreenstemmende Suid-Afrikaanse nakomingsraamwerk oorweeg word. Moontlike swakhede word geïdentifiseer gevolg deur toepaslike aanbevelings. Die wetlike nakomingsraamwerk vir minimumloon van Australië en die Verenigde Koningryk word geanaliseer. Hierdie lande veronderstel argumentshalwe hoog aangeskrewe, goed gevestigde nakomingsraamwerke wat as model kan dien vir ander lande. Gebaseer op die vergelykende analise word die beste en slegste praktyke van die buitelande jurisdiksies oorweeg alvorens ʼn effektiewe wetlike nakomingsraamwerk vir minimumloon uiteengesit word.
Description
Thesis (LLD)--Stellenbosch University, 2021.
Keywords
Income distribution -- South Africa, South African National Minimum Wage, Minimum wage -- South Africa, Labor laws and legislation -- South Africa, UCTD
Citation