PRESS STATEMENT | Labour Court Throws Out Frivolous Application by Company Paying Below the Minimum Wage

Date: 14/02/2025


On 13 February 2025, the Labour Court struck off the roll an urgent application brought by Crown Household (the employer) where Lawyers for Human Rights (LHR) represented the employees. The employer applied to suspend the implementation of a CCMA award which ordered them to pay five women workers the money owed to them in terms of the National Minimum Wage Act.

The Labour Court ruled that the application was not urgent. The Court also ordered costs against the employer for bringing the frivolous application.

Crown Household paid these workers in terms of a “piece work” system. This meant that they were paid according to how much work they completed. The system was designed in a manner to skirt the legally required practice of  paying workers the national minimum wage. In one instance, a worker received R500 as a salary, after having worked the entire month of December. Many of these women are the sole breadwinners in their household.

Faced with this gross exploitation, the workers approached the Casual Workers Advice Office (CWAO) and Lawyers for Human Rights (LHR) for assistance. CWAO and LHR worked with the workers to bring a case to the CCMA.

The CCMA ruled that Crown Household’s “piece work” system was unlawful. They ordered the employer to pay the workers the money that they were owed in terms of the national minimum wage. Instead of complying with this award, and paying workers what they are owed, Crown Household brought today’s application to suspend the implementation of the CCMA award.

The attorney representing the workers, David Dickinson of LHR, said, “The case illustrates the unfortunate practice by many companies to manipulate the law in order to avoid their legal responsibilities to pay the national minimum wage. Not only is this denying workers their basic rights, but it is also abusing the important role of our courts. The dismissal of the case powerfully illustrates that this malpractice is unacceptable in South Africa today.”

Kayan Leung of LHR said “it is repugnant of employers to abuse a system and exploit working class women who work difficult hours simply with the aim to provide for their families.”

The Labour Court ruling means that Crown Household must now pay the five women workers the money that they are owed in terms of the national minimum wage.

For further information, contact:

David Dickinson

Attorney, Workers’ Rights Unit

Email: info[@]lhr.org.za

Tel: 011 339 1960

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