Labour ministry recovers N$1.5m on behalf of retail workers

The labour relations ministry says 28% of wholesale and retail businesses nationwide failed to comply with basic labour laws, with the north-east recording the highest rate of non-compliance during inspections conducted between April and June.

The ministry’s chief public relations officer, Maria Hedimbi, told Namibian Sun this week that about 556 workplaces were inspected across the country during the first quarter of the financial year.

Of these, 402 employers were found to be compliant with the basic conditions of employment and the national minimum wage order, while 154 were found to be in violation.

Hedimbi said the national compliance rate stood at 72%.

Regionally, the central region led with a 94% compliance rate, followed by the south at 92%.

The picture was markedly different in the north, where non-compliance stood at 43%, with the north-east recording the poorest performance.

Hedimbi said the most common violations included unpaid wages, unauthorised or excessive deductions and failure to provide paid sick leave. She attributed the persistent breaches largely to a deliberate disregard for labour laws.

Ignorance no excuse

When confronted by inspectors, employers most commonly cited financial difficulties or a lack of understanding of their legal obligations.

"These factors, however, do not absolve any employer from their legal obligations. Every employer is required by law to pay employees correctly and on time and to make only lawful deductions," she stressed.

The ministry confirmed repeat offenders from previous inspection rounds had been identified and that four compliance orders were issued to ensure adherence to the law.

"When violations are identified, employers receive guidance and directives to rectify the issues within specified timeframes. Our inspectors then conduct follow-up visits to verify whether corrective measures have been enacted," Hedimbi explained.

The ministry recovered N$1.5 million in unpaid wages for workers, based on 1 241 labour complaints and enforcement actions.

The ministry could not provide data on the average amount recovered per worker nor a breakdown showing whether the 28% of non-compliant businesses were mainly small, medium-sized or large retailers.

Room for improvement

Regarding punitive measures, Hedimbi said the ministry's approach combines education, awareness programmes, guidance and social dialogue to foster voluntary compliance.

"Our primary objective is to promote harmonious labour relations," she said.

"However, in cases of persistent, deliberate or repeated non-compliance, we will take enforcement action to protect workers' rights."

Inspections are conducted according to an annual plan focusing on targeted sectors each quarter.

Hedimbi said the 72% compliance rate indicates progress, yet much work remains to be done.

"It is a positive sign that the majority of employers are adhering to Namibia's labour laws. Nonetheless, it also underscores the need for further improvements. Our goal is to achieve even higher levels of compliance," she said.

Hedimbi advised employers to comply with labour laws, stressing that these obligations are not only legal requirements but also foundational for productive and sustainable workplaces. She encouraged employees to understand their rights and report any instances of unfair labour practices to the ministry for appropriate action.