Erasmus Shalihaxwe
Acting Labour Commissioner, Kyllikki Sihlahla, has strongly warned Labour Unions and Employers’ Organisations that their registration can be cancelled or suspended if they fail to submit their audited annual financial returns by 30 November 2023.
She said after several warnings emphasising the imperative for defaulting entities to promptly comply with the statutory provisions outlined in the Labour Act. With only a few days left as well as a specific directive that required the submission of outstanding annual returns as per section 60 of the Labour Act, the majority still have not submitted their annual returns.
Sihlahla stated that defaulting trade unions and employers’ organisations were duly notified of the potential consequences such as the cancellation of their registrations or the Labour Court suspending their registrations pending compliance, should they fail to meet the deadline of 30 November 2023. But the window for compliance remains open until 30 November 2023 and there would be no extension thereafter.
“As of 01 September 2023, it was observed that only five (5) out of the forty-seven (47) registered trade unions, as well as two (2) out of the seventeen (17) registered employers’ organisations, were in compliance with their registration obligations. This starkly indicated the majority’s non-compliance with the applicable statutory obligations.
An update as of 24 November 2023 reveals that the situation persists, with only seven (7) of the forty-seven (47) registered trade unions, and three (3) of the seventeen (17) registered employers’ organizations, having fulfilled their registration obligations. This continued non-compliance is a matter of serious concern,” she said.
She added that annual returns, as mandated by section 60 (e) of the Act, must be submitted using Form LC 9. The submission must be accompanied by a statement of income and expenditure for the relevant year, a balance sheet reflecting the financial position at year-end, and an annual audit report prepared by a registered public accountant and auditor in terms of the Public Accountants and Auditors Act, 51 of 1951 or an auditor approved by the Labour Commissioner.
“Failure to comply within the stipulated timeframe will result in appropriate action being taken by the Labour Commissioner. It is strongly advised that immediate attention be given to fulfilling these obligations to avoid legal consequences.
In light of these circumstances, a comprehensive plan of action, outlining the steps to be taken in accordance with section 61 of the Labour Act, will be devised in December 2023. The public will be regularly informed of the progress made,” advised Sihlahla.
