TANG restaurant in Sandton has responded to claims made after a dramatic raid by the Department of Labour, which exposed alleged violations of labour laws and resulted in multiple arrests.
Story Summary:
- TANG restaurant’s PR team released a statement denying claims of exploitative work conditions following a raid.
- The Department of Labour arrested four undocumented workers and a manager during the raid.
- The ongoing crackdown on illegal labour practices continues, with inspections targeting multiple establishments.
TANG addresses alleged exploitative work conditions
In a statement to Swisher Post, TANG’s PR team clarified the situation, dismissing accusations of “slave-like” working conditions and insisting the restaurant complies with South African labour laws.
“TANG Hospitality is a fully compliant member of the Bargaining Council Agreement for the Restaurant, Catering, and Allied Trades,” the statement read.
The restaurant emphasised its commitment to legal employment practices, explaining that all employees are required to submit certified copies of their South African identity documents or valid work permits if they are foreign nationals.
TANG also addressed the allegations surrounding undocumented workers.
According to the statement, four employees were taken into police custody during the raid — one of whom has since presented a valid work permit.
The restaurant clarified that the other three were in the process of renewing expired permits that were valid at the time of their hiring.
“We will continue to cooperate fully with government agencies to resolve this matter,” said TANG CEO Nicky van der Walt.
The restaurant also defended its pay structure, stating that it operates on a commission-based system approved by the Bargaining Council, with some waitstaff earning up to R60,000 per month in tips and commissions.
“Our average waitron earned R21,971.76 in June, R20,123.47 in July, and R21,805.16 in August 2024,” the statement added.
TANG’s claim that their commission-based wage structure for waitrons was approved by the Bargaining Council means that their pay system complies with an industry-specific agreement between employers and employees, overseen by the industry-specific Bargaining Council.
In South Africa, Bargaining Councils are established to create and enforce collective agreements in specific industries or sectors.
These agreements include rules on wages, working hours, and other employment conditions, aimed at ensuring fair treatment of workers and compliance with labour laws.
In TANG’s case, their commission-based pay for waitrons has been approved as part of a collective agreement within the restaurant, catering, and allied trades.
However, even though the system allows for employees to earn wages primarily through tips and commissions, it still has to comply with the broader National Minimum Wage Act (NMWA).
The NMWA sets the minimum hourly wage that all employees in South Africa are entitled to, currently set at R27.58 per hour (as of 2024).
This means that under no circumstances should an employee, including waitrons working on a commission structure, earn less than the national minimum wage.
In this context, the relationship between the Bargaining Council approval and the National Minimum Wage Act ensures that:
- The commission structure at TANG must still guarantee that waitrons earn, at minimum, the national wage of R27.58 per hour.
- If tips and commissions do not meet this threshold, TANG would be required to top up the employees’ earnings to ensure they comply with the minimum wage laws.
In short, while TANG’s pay structure has been approved by the Bargaining Council, it must still align with national wage laws to protect workers from being underpaid.
What law enforcement discovered at TANG Sandton restaurant raid
On Wednesday, the Department of Labour and Home Affairs conducted a raid at TANG Sandton as part of a broader operation targeting illegal labour practices and undocumented workers in Gauteng.
The multi-disciplinary team arrested five individuals, including four undocumented employees and a manager responsible for hiring and payroll.
Gauteng Chief Inspector Michael Msiza led the operation, confirming that the restaurant had violated multiple regulations.
“We found that several workers did not have proper documentation, which is a clear violation of the law,” Msiza said.
The arrest of the HR manager, who was involved in hiring and firing employees, was also a focal point of the raid.
Labour inspectors interviewed around 20 employees, asking them to detail their salaries and working conditions.
Msiza reported that while chefs and cleaners received basic salaries of between R5,000 and R7,500, waitstaff relied solely on tips and commissions, with no fixed wage.
This, according to Msiza, contravenes the National Minimum Wage Act.
“We are going to make calculations to ensure they are paid what is due to them,” he added.
TANG was temporarily closed due to non-compliance with the Unemployment Insurance Act and occupational health and safety standards.
Inspectors found issues with the restaurant’s gas installation and noted leaking ceilings, leading to an immediate prohibition of operations.
Ongoing crackdown on labour violations in Gauteng
The raid on TANG is part of a larger blitz by the Department of Labour and Home Affairs aimed at rooting out illegal immigration and exploitation in the hospitality sector.
This high-profile operation follows similar actions taken at Babel restaurant in Menlyn, Pretoria after a viral TikTok video exposed the alleged mistreatment of workers.
The ongoing efforts by enforcement units target restaurants failing to meet basic labour law requirements.
Labour Minister Nomakhosazana Meth affirmed that the crackdown will continue, with further inspections planned for restaurants and hospitality venues across Gauteng.
“We are determined to ensure that every worker in South Africa is treated fairly and paid in accordance with the law,” she said.
As the investigation into TANG’s practices continues, more establishments are expected to face scrutiny.
