Cape Town Spur workers allege exploitation, poverty wages and labour law violations
The allegations have been made by current and former employees of Malibu Spur at Bayside Mall in Table View, Cape Town. (File photo)
Workers at a high-profile Spur franchise in Cape Town have accused their employer of exploitative labour practices, alleging they are paid as little as R2,000 a month despite working shifts of up to 14 hours a day.
They claim they are denied basic workplace rights, including payslips and written contracts, and say some employees have been dismissed after questioning their conditions of employment.
The allegations, made by current and former employees of Malibu Spur at Bayside Mall in Table View, come amid renewed public pressure on restaurants and retailers to employ South Africans following concerns over the employment of undocumented foreign nationals.
The workers, who spoke to Sowetan’s sister publication, Sunday Times on condition of anonymity for fear of victimisation, say they inherited exploitative working conditions that have gone unchecked for years. One employee alleged she was dismissed after requesting a copy of her employment contract and payslip.
“We are not allowed to get sick or have a personal life outside work. To paint a picture, we are treated almost like slaves. We even have to ask for permission to use the bathroom, and sometimes the answer is no,” she said.
Another worker said employees typically start work at 7.30am and finish around 9pm, receiving only a 15-minute tea break and a 30-minute lunch break.
“They hire people with little or no experience because they don’t want to be questioned. We are also not allowed to use the restaurant’s bathrooms and have to use the public toilets in the mall,” he alleged.
Workers said they were initially told they would earn commission, but instead receive about R2,000 a month, from which they must cover transport, food and rent. Several said they spend about R120 a day travelling to and from work.
They also claimed waiters are expected to pay “runners” staff who assist with clearing and cleaning tables out of their own pockets.
Although tips can supplement their income, workers said they are unpredictable.
“On busy days we can make between R300 and R500 in tips, but when business is slow you can go home with nothing,” one employee said.
The first time [a customer left without paying], I asked to see the CCTV footage, but I was told the cameras weren’t working that day. I had to pay for the customer’s meal myself. The same woman came back about a month later and again left without paying. When I complained, I was shown the door.— Former waiter
According to the workers, they did not sign any contracts; instead, they were informed that there would be no basic salary and that they would instead earn a 4% commission. They said the remuneration model was presented as being more lucrative than a standard hourly wage, leading them to believe they would earn more through commission.
The Sunday Times has seen staff rosters indicating shifts from 7.30am to 9pm, as well as bank statements showing salary payments of R2,289.73 with the reference “MALIBU SPUR Salary”. The workers also shared their commission schedule. However, the document does not specify how the commission is calculated or the percentage or amount payable to individual workers.
Asked why they had not raised their concerns with the franchise owner or referred the matter to the Commission for Conciliation, Mediation and Arbitration (CCMA), the workers said they feared losing their jobs.
“Many of us have stayed and kept quiet because we are desperate and need the little income we receive, even though we know the situation is not in line with the Basic Conditions of Employment Act and the National Minimum Wage Act. Speaking out could have cost us our livelihoods,” one worker said.
A former waiter alleged he was dismissed after a customer left without paying.
“The first time it happened, I asked to see the CCTV footage, but I was told the cameras weren’t working that day. I had to pay for the customer’s meal myself. The same woman came back about a month later and again left without paying. When I complained, I was shown the door,” he said.
Under the BCEA and the National Minimum Wage Act, every employee is entitled to at least the national minimum wage, regardless of whether they earn commission or receive tips. Gratuities cannot be used to replace wages or make up the minimum wage.
The BCEA also:
- provides that ordinary working hours may not exceed 45 hours a week for most employees;
- requires employers to provide payslips and written employment particulars;
- ensures reasonable working hours, meal breaks and rest periods;
- prohibits unlawful deductions from employees’ wages; and
- guarantees statutory benefits such as annual leave, sick leave and other basic workplace protections.
Some of the questions sent to franchise owner Lynton Cassel related to allegations by employees that they were paid about R2,000 a month despite working shifts of up to 13 hours a day. The Sunday Times also sought his response to claims that employees had not been provided with written employment contracts or payslips and instead received salary payments directly into their bank accounts without supporting documentation.
The Sunday Times further asked what measures were in place to ensure the franchise’s compliance with South African labour legislation, including the Basic Conditions of Employment Act and the National Minimum Wage Act, specifically regarding:
- payment of the national minimum wage;
- the provision of written employment contracts and payslips;
- UIF registration and contributions; and
- compliance with statutory working hours and other employment obligations.
Responding to some of the questions, Cassel said the restaurant was committed to:
- treating its employees fairly;
- maintaining a positive working environment; and
- investigating any concerns raised by staff.
“We hold monthly meetings to allow employees to raise issues requiring attention. Employees work shifts that vary according to their roles in the restaurant and are remunerated accordingly. We comply with South African labour legislation and work with an independent labour consultant to ensure the correct processes are followed. Inspections by the department of employment and labour since 2022 have not resulted in any adverse findings,” he said.
Cassel said the franchise took all allegations seriously.
“We are aware of one former employee who has raised certain concerns. We have made several attempts to contact her to discuss the matter and seek a resolution but have been unable to reach her. We remain willing to meet with her,” Cassel said.
“We can confirm that she was employed on a one-month contract. We consulted with her in person and provided her with copies of her employment contract and payslip. We are currently reviewing the processes used by the restaurant’s management to verify hours worked and to address any instances where due process may not have been followed. We are committed to resolving this matter fairly and as quickly as possible.”
Shortly after the Sunday Times sent questions to the franchise owner and Spur Corporation, the head office visited the franchise. Workers said they were asked on Friday to sign new employment contracts reflecting a 45-hour working week.
Spur Corporation spokesperson Moshe Apleni said the company operates a franchise model, with each restaurant independently owned and managed.
“As a franchisor, we maintain stringent franchise agreements that require franchisees to comply with applicable legislation, including South African labour laws. Franchisee standards are monitored through operational audits, site visits, reporting processes, compliance audits and complaint channels. Franchisees are also independently inspected by the department of employment and labour,” he said.
Apleni said franchisees are responsible for:
- employment contracts;
- payroll;
- working hours;
- payslips;
- UIF registration; and
- compliance with labour legislation.
“We have not previously received complaints about employment practices at the Bayside Mall franchise. The franchise has confirmed that department of employment and labour inspections since 2022 have not resulted in any adverse findings.
“However, we take the current allegations seriously and have commenced a thorough investigation, working directly with the franchise owner. Any breach of labour legislation or Spur’s franchise standards is treated as a serious matter, with franchisees expected to implement immediate corrective measures. They may also be subject to further action under the franchise agreement if a breach is not remedied promptly.”
He said Spur remained committed to responsible franchising and expected all franchise partners to comply with employment laws and ensure the fair, lawful and dignified treatment of employees.