ATC190116: Submission of a Legislative Proposal: Memorandum in terms of Rule 273 of the Rules of the National Assembly by the Portfolio Committee on Labour, dated 16 January 2019

Employment and Labour

SUBMISSION OF A LEGISLATIVE PROPOSAL: MEMORANDUM IN TERMS OF RULE 273 OF THE RULES OF THE NATIONAL ASSEMBLY BY THE PORTFOLIO COMMITTEE ON LABOUR, DATED 16 JANUARY 2019
 

The Portfolio Committee on Labour (“Committee”) is hereby requesting the permission of the House in terms of Rule 273(1) for the introduction of the following legislation in the House, namely the National Minimum Wage Amendment Bill, 2019.

 

(1) Particulars of the Bill

 

The Bill aims to amend the National Minimum Wage Act, 2018 (Act No. 9 of 2018) (“the Act”) so as to correct an incorrect cross-reference contained in section 17(4).

 

When the National Minimum Wage Bill [B31 - 2017] was introduced, section 17(4) correctly at the time cross referred to section 4(6). The Committee, however, amended section 4 with two additional subsections being inserted, so that the original section 4(6) became section 4(8). However, the required consequential amendment to section 17(4) was not effected.

 

It is envisaged that this amendment should be effected through the substitution of section 17(4) of the Act of a new subsection.

 

(2) Background and Objects of the Bill

 

The Act aimed to advance economic development and social justice by—

(a)        improving the wages of lowest paid workers;

 

(b)        protecting workers from unreasonably low wages;

 

(c)        preserving the value of the national minimum wage;

 

(d)        promoting collective bargaining; and

 

(e)        supporting economic policy.

 

However, the Act contains a technical error, which arose because of a consequential amendment that was not effected. The Bill aims to correct the consequential amendment in section 17(4) so that it correctly refers to section 4(8) as opposed to section 4(6).

 

(3) Financial Implications for the State

 

It is not envisaged that the implementation of the Committee Bill will incur costs.

 

(4) Views of the Executive on the objects of the proposed legislation

 

The proposed Bill will contain a measure discussed with the Department during Committee meetings and the Department has indicated that it is in agreement with this measure.

 

Report to be considered.