The Department of Employment and Labour will promote, strengthen and enforce compliance of the labour laws as it strives for a market that is conducive to economic growth.
This is according to Minister Nomakhosazana Meth, who expressed her support for the signing into law of the Companies Amendment Bill and Companies Second Amendment Bill into law by President Cyril Ramaphosa on Friday.
She said the law had a direct linkage to the Employment Equity Amendment Act 2022, particularly Section 27 that referred to the statement of income differentials required from designated employers.
“The requirement of disclosure by companies of the average and median total remuneration of all employees, and the remuneration gap between the total remuneration of the top 5% highest paid employees, and the total remuneration of the bottom 5% lowest paid employees of the company, would go a long way in exposing existing inequalities in employment.
“As a result, the work done by the Department of Employment and Labour to transform the labour market will be strengthened as the two pieces of law are complementing each other and will ensure more transparency from the employers,” said Meth.
Ramaphosa sought to change the companies Act of 2008 that promotes the ease of doing business to attract investors, and force businesses to disclose the gap in the earnings between the highest and lowest paid persons in companies to highlight excessive executive pay.
The Companies Amendment Act and Companies Second Amendment Act would also extend the time periods within which a court may declare a director delinquent. It will also compel businesses to disclose the persons owning them.
These acts are seen as important tools to empower workers to fight for more equitable wage structures.
Presidential spokesperson Vincent Magwenya, said, “The Companies Amendment Bill and Companies Second Amendment Bill referred to the President for assent, jointly constitute initiatives by the government to make the conduct of business less burdensome, to tighten the pursuit of delinquent directors or prescribed officers for wrongdoing, including state capture, and to address disparities in earnings.”
The Star