The combined examination of Menlyn’s posh Babel Restaurant and the adjoining Ocean Basket revealed that both establishments owed their employees more over R1.3 million in unpaid pay.
The Directorate of Priority Crimes Investigation (the Hawks), Home Affairs, the Department of Labour, and Bargaining Council authorities raided the eateries on Sunday night, discovering many difficulties with employer noncompliance.
Both employers, Babel Restaurant and Ocean Basket, were found to have violated the National Minimum Wage Act.
The upscale Menlyn establishment’s employer failed to reimburse the employees at the mandated minimum wage rate for 2024/25, which is R27.58 per hour.
According to a statement from the Ministry of Employment and Labour, Minister Nomakhosazana Meth, the Babel restaurant owes its staff an estimated R271,984 for cleaners and R295,547 for waiters and waitresses in underpaid salaries.
Meth praised the joint operation, claiming that at Babel Restaurant, servers were paid only on commission and tips, with some earning as little as R150 per shift and a maximum of R300 per week, which is much less than the National Minimum Wage.
Employees at Babel eatery allegedly performed 12- and 15-hour shifts every day, violating the Basic Conditions of Employment Act’s daily and weekly rest limits.
A former waitress has exposed Babel’s alleged exploitative hiring practices, including staff paying for their own uniforms and equipment (e.g. bottle openers, cigarette lighters, cigar lighters, cutters), with no basic salary and a daily non-refundable breakage fee of R200.
Waitresses at Ocean Basket were also paid on a tip and commission basis, with no base income offered. The employer reportedly owed the employees R813,969.
“A combined total of R1,381,500.60 is owed to the employees of both restaurants,” stated Ministry spokesperson Thobeka Magcai.
According to Magcai, Babel Restaurant violated section 56 of the Unemployment Insurance Act by not registering with the Unemployment Insurance Fund (UIF) and failing to make monthly pay statements. The eatery did not pay any contributions to the UIF either.
The Ministry stated that Ocean Basket was registered with the UIF but did not make monthly pay disclosures to the fund. They also neglected to submit their 2023 earnings return and owing the Compensation Fund R72,000.
The Ministry also discovered that Babel Restaurant is not registered with the Compensation Fund and has not submitted a return of earnings since its inception and start of operations in June 2024.
According to the Ministry, at least three people were arrested during the sting operation, which was carried out by an inspection team led by Acting Director General Viwe Mlenzana, the Department of Home Affairs Immigration, the Bargaining Council, and Hawks.
Two undocumented foreign nationals working at Babel, including their employer, and one undocumented foreign national working for Mr Delivery collecting a lunch from Ocean Basket were detained.
Meth strongly condemns worker mistreatment in any employment environment and urges employees who may be subjected to unfair labour practices to report it to the nearest Labour Centre in their area.
“The exploitation of vulnerable workers by employers will not be tolerated in any industry.
“Members of the public who may be subjected to unfair employment practices are advised to report such incidents to the nearest employment Centre, as such cases will receive immediate attention. “We take employment and labour issues very seriously,” Meth stated.
