Department of employment & labour department fails to ensure no employers escape contributions to the fund
10 July 2022 - 19:51
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In an answer to a question in parliament the employment & labour minister said 520,860 employers should be contributing to the Compensation Fund. However, the total number of employers who submitted 2021 return of earnings forms by the end of May 2022 was only 204,822.
The department of employment & labour should be working around the clock to ensure these numbers match, and that no employers escape contributions to the Compensation Fund. The ministry seems rather to be concentrating on junkets to the International Labour Organization, thereby spending millions that could have been spent on capacitating inspectors in SA.
In addition, it appears that the department has spent more than R6.3m on just the Unemployment Insurance Fund over the past five years. Over and above this, the Compensation Fund spent R50.9m on legal costs in the past five years.
This is indicative of a department that spends enormous amounts defending itself rather than ensuring the administration becomes more efficient.
Michael Bagraim, MP DA deputy shadow employment & labour minister
JOIN THE DISCUSSION: Send us an email with your comments to letters@businesslive.co.za. Letters of more than 300 words will be edited for length. Anonymous correspondence will not be published. Writers should include a daytime telephone number.
Support our award-winning journalism. The Premium package (digital only) is R30 for the first month and thereafter you pay R129 p/m now ad-free for all subscribers.
LETTER: Compensation Fund payments fall short
Department of employment & labour department fails to ensure no employers escape contributions to the fund
In an answer to a question in parliament the employment & labour minister said 520,860 employers should be contributing to the Compensation Fund. However, the total number of employers who submitted 2021 return of earnings forms by the end of May 2022 was only 204,822.
The department of employment & labour should be working around the clock to ensure these numbers match, and that no employers escape contributions to the Compensation Fund. The ministry seems rather to be concentrating on junkets to the International Labour Organization, thereby spending millions that could have been spent on capacitating inspectors in SA.
In addition, it appears that the department has spent more than R6.3m on just the Unemployment Insurance Fund over the past five years. Over and above this, the Compensation Fund spent R50.9m on legal costs in the past five years.
This is indicative of a department that spends enormous amounts defending itself rather than ensuring the administration becomes more efficient.
Michael Bagraim, MP
DA deputy shadow employment & labour minister
JOIN THE DISCUSSION: Send us an email with your comments to letters@businesslive.co.za. Letters of more than 300 words will be edited for length. Anonymous correspondence will not be published. Writers should include a daytime telephone number.
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