A joint inspection operation at Menlyn’s upscale Babel Restaurant and Ocean Basket has uncovered that both establishments owe over R1.3 million in unpaid wages to their employees. The investigation, led by the Directorate of Priority Crimes Investigation (Hawks), the Department of Home Affairs, the Department of Labour, and the Bargaining Council, took place on Sunday night and revealed multiple violations of labor laws.
Non-Compliance with Minimum Wage Laws
The operation revealed that both Babel Restaurant and Ocean Basket had failed to comply with the National Minimum Wage Act. Babel Restaurant, located in the affluent Menlyn area, was found to have underpaid its employees significantly, violating the 2024/25 minimum wage rate of R27.58 per hour.
According to a statement from Labour Minister Nomakhosazana Meth, Babel owes its cleaners R271,984 and its waitstaff R295,547 in underpaid wages. Waiters and waitresses were being paid solely through commissions and tips, with some earning as little as R150 per shift, resulting in a maximum of R300 per week. This falls drastically below the national minimum wage.
Long Hours and Exploitative Practices
The investigation also found that workers at Babel were required to work 12 to 15-hour shifts daily, violating the Basic Conditions of Employment Act’s guidelines on daily and weekly rest periods. The working conditions came to light after a former waitress exposed the restaurant’s exploitative hiring practices.
The former employee claimed that staff had to pay for their own uniforms and tools, such as bottle openers, cigarette lighters, and cigar cutters. Additionally, employees were not given a basic salary and were subjected to a non-refundable daily breakage fee of R200.
Ocean Basket Faces Similar Issues
Ocean Basket, another prominent restaurant in the same area, also paid its staff based solely on tips and commissions, offering no basic salary. The Department of Labour found that Ocean Basket owed its employees R813,969 in unpaid wages.
UIF and Compensation Fund Violations
Babel Restaurant was further found to be in violation of the Unemployment Insurance Act. The establishment is not registered with the Unemployment Insurance Fund (UIF), nor does it submit monthly salary declarations or make contributions to the fund. Similarly, Babel has not registered with the Compensation Fund since it began operations in June 2024 and has failed to submit its earnings returns.
Ocean Basket, while registered with the UIF, has not submitted its monthly salary declarations and owes the Compensation Fund R72,000 for its failure to submit the return of earnings for 2023.
Arrests and Legal Action
During the sting operation, three people were arrested, including two undocumented foreign nationals employed at Babel and their employer. Additionally, an undocumented foreign national working for Mr. Delivery, who was collecting a meal at Ocean Basket, was also taken into custody.
Minister Meth’s Strong Condemnation
Minister Nomakhosazana Meth strongly condemned the mistreatment of workers, emphasizing that the exploitation of vulnerable workers will not be tolerated. She urged employees facing unfair labor practices to report such incidents to the nearest Labour Centre, assuring that these matters would be addressed with urgency.
“The exploitation of vulnerable workers by employers will not be tolerated in any sector,” said Meth. She also encouraged the public to report any unfair labor practices they may encounter.
Lack of Response from Babel Restaurant
Attempts to reach Babel Restaurant for comment were unsuccessful. When contacted through their listed contact details, a representative refused to comment and eventually hung up. There has been no official statement from the restaurant regarding the allegations.
Conclusion
The investigation at Menlyn’s Babel Restaurant and Ocean Basket has uncovered severe violations of labor laws, leaving over R1.3 million in unpaid wages. With both establishments facing legal action, Labour Minister Nomakhosazana Meth has reaffirmed the government’s commitment to protecting workers’ rights and ensuring compliance with national labor standards.
