On Friday, the Employment and Labour Department announced that it had launched court action against the firm for contravening the Employment Equity Act by hiring 90% foreign labour locally.
JOHANNESBURG - Chinese tech giant Huawei could face even more legal challenges in South Africa, with government saying that it had reason to believe that the majority of the company’s foreign employees did not have work permits.
On Friday, the Employment and Labour Department announced that it had launched court action against the firm for contravening the Employment Equity Act by hiring 90% foreign labour locally.
The government wants the company to be slapped with a R1.5 million fine or 2% of its local turnover.
With the country’s immigration regulations clear that only 40% of any company’s labour can comprise of foreign nationals, the Department of Employment and Labour said that the Department of Home Affairs did not give Huawei work permits above this quota.
The department’s chief director for statutory and advocacy services, Advocate Fix Bede said: “But the information that we have, the Department of Home Affairs has given them only the 40% and not beyond that.”
The department gives employers 60 days to correct non-compliance after it is found that they’re in contravention of the law, however, in Huawei’s case this did not yield any results.
This is not the first time that the department has launched action against an employer over the law.
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