Pay workers on Security of Wages Act – TUCOSWA

Mbabane: The Trade Unions Congress of Swaziland (TUCOSWA) has advised that laid-off workers due to the outbreak of COVID-19 should be paid based on Section 62 of Employment Act under Security for the Payment of Wages.
Various companies around the country including hotels has seen the off-loading of staff, with the latest being the Plantation Forest Company, which laid-off 68 employees, whose employees stated that they had been served with letters saying they would be losing their jobs with effect from February 28.
The TUCOSWA Acting Secretary General Mduduzi Gina said they had long proposed for an unemployment insurance fund, adding that there is no Employment Act or deal to activate such. He said the Ministry of Labour through the labour commissioner must engage the nation on the developments surrounding the laying-off of working and how that they can be paid. “We are made aware that only about100 companies come under the Security of Payment Wages but still government must issue out how those employees will be paid out,” said Gina.
However, it appears that not all companies are eligible to benefit from this bond.
The Act applies only in cases of risk companies that are declared unstable and bear the potential to be unable to fulfil their obligation to pay employees. The COVID-19 pandemic has only been added in as qualifying for the Security of the Payment Wages bond due to its nature to deprive employees of their livelihood.
Labour Commissioner Mthunzi Shabangu said payment of such companies will be definitely be done but only subsequent to companies’ management applying for the release of the bonds. Shabangu said only the companies inspected by the labour ministry and found to be risky and unstable would benefit.
“There are companies which qualify for the Security of Payment of Wages, from which we gathered the equivalent of the workers’ monthly wage bill but they would have to apply for the release of the bond,” said Shabangu, adding that as yet they haven’t received any applications.
Shabangu warned against the misinterpretation of the employment’s act saying people need to know that not all companies come to benefit through it. He said credible and stable companies which do not bear risks of not paying their employees are exempt from the act, adding that such companies have shown themselves capable of paying their workers in cases of misfortunes like having to lay-off workers.
Security for the Payment of Wages Act 62.
(1) Whenever the Labour Commissioner is, in pursuance of a report under Part VII of this Act or otherwise, of the opinion that an employer has begun or is about to begin operating in Swaziland, the Labour Commissioner shall scrutinise the report or reports, if any, filed by the employer and shall make such other enquiries as he may deem necessary to ascertain whether it is desirable to require the employer to deposit a security for the payment of wages to his employees.
(2) If, as a result of the scrutiny or enquiries made by him under subsection (1), the Labour Commissioner considers it necessary for an employer to deposit a security for the payment of wages to his employees, the Labour Commissioner may, in writing, order the employer to deposit with him such sum of money or other form of security as may be acceptable to him up to a maximum of, or equivalent to one month’s wages for all persons employed by the employer in Swaziland.
(3) An employer against whom an order is made by the Labour Commissioner under subsection (2) shall comply immediately with such order within three working days after the order is made, or within such longer period as the order may allow.
(4) In the event of non-compliance by an employer with an order made against him under subsection (2) the employer shall cease forthwith to employ any employees other than those employed primarily in a managerial capacity, and shall pay to each such terminated employee an amount equal to the amount the employer would be required to pay to that employee in lieu of notice if the employee were being terminated for redundancy.
(5) An employer aggrieved by an order made against him by the Labour Commissioner under this section may apply to the Industrial Court for the rescission of the said order, and the Court may upon such application order such rescission if the Court is satisfied that the Labour Commissioner did not have reasonable grounds for making the order.
(6) The making of an application to the Industrial Court under subsection (5) shall not postpone the employer’s obligation under subsection (3) to comply with the order, but shall postpone, until the Court has made its decision upon the application, any obligation which the employer would otherwise incur under subsection (4).