‘This is a personal witch hunt,’ says TANG restaurant CEO amid labour compliance crackdown

A recent crackdown by the Department of Employment and Labour has embroiled prominent South African restaurants including TANG and Ocean Basket in a labour law compliance controversy.

The departmental raid on Wednesday resulted in the temporary closure of TANG’s Sandton location and sparked concerns over the restaurants’ adherence to South African labour laws.

TANG CEO and Founder, Nicky van der Walt, vehemently denied claims of non-compliance, labelling media reports as “sensationalist and false journalism”.

“TANG feels like this is a personal witch hunt to tarnish TANG’s award-winning image,” Van der Walt stated.

He also watered down the allegations surrounding the arrest of a manager during the raid.

“Our HR Manager was never arrested nor charged with any malpractice; she was interviewed in relation to employee record verification,” Van der Walt clarified.

The Department of Employment and Labour this week embarked on a four-day multi-departmental inspection blitz following Babel restaurant in Menlyn, Pretoria, being investigated for labour law violations.

Babel was exposed on TikTok by one of its former employees Mihlali Nobavu who alleged that the company ill-treated and exploited its employees.

ALSO READ: Babel restaurant owner and two employees arrested in raid by labour department [VIDEO]

Undocumented workers clarification

TANG further addressed allegations of employing undocumented workers, explaining that four workers taken into custody had valid work permits or were in the process of renewing expired ones.

“One has since presented his legal work permit, while the other three were in the process of renewing their expired permits, which were valid during their hiring,” said Van der Walt.

TANG emphasised its commitment to South African labour laws, highlighting its membership with the Bargaining Council Agreement for the Restaurant, Catering and Allied Trades.

The restaurant claimed to conduct regular human resource and compliance audits to ensure documentation validity.

As part of its recruitment process, TANG said it required applicants to submit essential documents, including certified ID copies, work permits, and proof of bank accounts.

ALSO READ: How to report businesses for labour inspections in your province

‘Highest paid waitrons in the industry’

Restaurant Association SA CEO, Wendy Alberts, who spoke to 702 on Thursday noted that commission-based waiters can work in the industry if their commissions meet minimum wage requirements.

TANG said it adheres to minimum wage laws and operates under a Bargaining Council-approved commission structure.

The establishment boasted about its workers’ wages and tips.

It proudly stated that its waitrons are among the highest paid in the industry, with average earnings ranging from R20,000 to R60,000 per month.

“We are extremely proud that our waitrons are some of the highest paid in the industry – with the average waitron having earned (R21 971,76 in June, R20 123,47 in July, and R21 805,16 in August 2024) and some individuals earning up to R60,000 per month in commission and tips.

ALSO READ: Labour department launches inspection blitz after Babel restaurant scandal

Ocean Basket denies non-compliance

Ocean Basket has also refuted allegations of labour law non-compliance following a raid at its Menlyn location on Sunday.

The Department of Labour and Employment released a statement earlier this week, on Monday, asserting that Ocean Basket was breaking multiple labour laws including not paying Unemployment Insurance Fund (UIF) provisions and omissions for annual assessments to Compensation for Occupational Injuries and Diseases Act (Coida).

After an independent investigation, the establishment said it found no evidence of illegal foreign workers, confirmed that all staff receive wages, tips, and commission, and verified that no money is owed to staff members.

Ocean Basket expressed concerns over the Department of Labour’s handling of the matter.

“We need to review where they got their data from and understand their current procedures,” it said in a statement on social media X.

Feedback on allegations in media release issued by Dept. of employment and labour… There are no illegal foreigners employed by OB Menlyn✅. Practices DO comply with regulations.✅ Dept has made no contact. We reached out. Not nice.😥 Brand reputation at stake. Full release… pic.twitter.com/o1VSJa4p5h

— Ocean Basket (@TheOceanBasket) September 17, 2024

The company called for the department to provide evidence supporting their claims, emphasising the detrimental effect of unsubstantiated allegations on their brand’s credibility.