The seafood restaurant was included in reports of unfair labour practices after the department conducted a raid at Babel on Monday after a tip-off and social media post by a former employee.
After inspecting the high-end restaurant, where two foreigners and the owner were arrested, the department went to the nearby Ocean Basket, where an undocumented Mr Delivery driver was arrested while collecting food.
The department said not only did Babel violate employment laws but so did the Ocean Basket franchise, which was said to not pay staff a minimum wage as they earned commission and tips instead.
“At Ocean Basket ... the amount the employer owes the employees is R813,969. The employers did not comply with the provision of the Compensation of Occupational Injuries and Diseases Act as ... Ocean Basket failed to submit the return of earnings for 2023 and owes the Compensation Fund R72,000,” ministry spokesperson Thobeka Magcai said.
However, this was false and there was no evidence to substantiate the claims as all staff earned the regulated minimum wage including tips and commission, CEO Grace Harding told TimesLIVE.
Since the news broke of the alleged unfair labour practices at Ocean Basket, its head office spent 24 hours investigating the Menlyn franchise through an independent labour lawyer, internal auditors and an accounting firm.
After hours of scrutiny, it was found no illegal foreigner was employed. This was confirmed by the home affairs department which visited the eatery on Sunday night, said Harding.
“All staff receive their monthly wages, tips and commission as per their employment contracts. No money is owed to any staff members. Staff have voluntarily supplied affidavits to this effect. Our practices comply with the South African labour legislation. No contact has been made or documentation supplied to us by the department as evidence of where they got the figures they released to the media or to ask for our co-operation in resolving this.
“We have been referred among personnel at the department but no-one has answered any questions or agreed to meet or supply the evidence supporting these figures,” Harding said.
They called on the department to join them in working together to understand what had occurred at the Menlyn franchise, review where they got their data from and understand their procedures.
“We are concerned that they issued a media release without discussing any findings with us. These actions have had a detrimental effect on our brand's credibility and reputation.
Instead, Harding said they do not believe such a tip-off of unfair labour practices and underpayment of staff came from their workers, but likely from Babel staff.
“Anyone who works at an Ocean Basket restaurant and who has a complaint can make an anonymous report to head office which then carries out an inspection and investigation into the claims,” Harding said.
While the national minimum wage is set at R27.58 per hour, since Ocean Basket trades in different provinces governed by different bargaining councils or basic conditions of employment, the company abides by the regulations in each province.
Commission is earned as a percentage of sales for each month, said Harding.
“In the event that commission earned falls below the minimum wage, in relation to the number of hours a person has worked, a top-up amount is provided to get them to the minimum wage per hour. Tips are over and above the commission earned. It is a separate payment made on top of the commission.
“We are in contact with the inspector at the department who conducts routine audits of restaurants to ensure they are adhering to the Basic Conditions of Employment Act who has assured us he is receiving the full co-operation of the business owner and this is a routine audit which is not yet complete,” Harding said.
Magcai had said the department discovered the Occupational Health and Safety Act was violated and Ocean Basket failed to ensure compliance with gas installation and the certificate of conformity. Therefore, the use of gas in the kitchens was prohibited, she said.
Harding said the inspector made valid points regarding health and safety.
“This [relates] to two main themes — the frequency of important checks such as gas safety valves and making sure there is someone on duty who is a trained health and safety officer. His comments are valuable and we have already gathered the gas paperwork and are working through the other findings.
“I want to say thank you for the collaborative tone and approach that we have experienced and the focus was on making sure people are safe.”