Rivermate | Eswatini flag

Eswatini

Dispute Resolution and Legal Compliance

Understand dispute resolution mechanisms and legal compliance in Eswatini

Labor courts and arbitration panels

Eswatini has a specialized labor court system that handles employment-related disputes. The sole labor court in Eswatini, the Industrial Court, is the primary forum for resolving individual and collective labor disputes. The highest court in Eswatini, the Supreme Court, may hear final appeals on labor-related matters that have gone through the Industrial Court.

Industrial Court's Jurisdiction

The Industrial Court of Eswatini handles a wide range of employment-related disputes, including conflicts between individual employees and employers, such as those related to wrongful termination, unpaid wages and benefits, workplace safety, discrimination, and breaches of contract. It also handles disagreements between groups of workers (often represented by unions) and employers. These disagreements typically involve collective bargaining agreements, strikes, lockouts, or broader issues of labor policy.

Process in the Industrial Court

The typical process in the Industrial Court of Eswatini generally follows these steps:

  1. The aggrieved party (employee, employer, or union) submits a claim to the Industrial Court.
  2. The Industrial Court prioritizes conciliation and will attempt to facilitate a settlement agreement between the parties.
  3. If conciliation fails, a formal hearing is held, with the presentation of evidence, witnesses, and legal arguments.
  4. The Industrial Court issues a decision, which is usually rendered within a relatively short time frame.
  5. Decisions of the Industrial Court can be appealed to the Supreme Court of Eswatini.

Typical Cases

The Industrial Court typically handles cases such as claims for unfair or wrongful dismissal, disputes over wages, overtime pay, bonuses, and other benefits, discrimination and harassment claims, occupational safety and health concerns, and disputes over the interpretation or application of collective bargaining agreements or labor laws.

Arbitration Panels

Eswatini acknowledges the use of arbitration to resolve some labor disputes. The Industrial Relations Act (2000) contains provisions for voluntary arbitration in labor disputes, while the Arbitration Act (1904) provides a more general framework for arbitration, including procedures and enforcement of awards. Arbitration can potentially provide a faster, less costly, and more private method of resolving certain labor disputes in Eswatini. However, it's important to remember that arbitration awards are binding, and appeal options are often limited.

Compliance audits and inspections

Eswatini has a robust system for labor inspections and compliance audits, aimed at ensuring adherence to labor laws and regulations. The Department of Labor, under the Ministry of Labor and Social Security, is the primary governmental authority responsible for enforcing these laws. It employs labor inspectors who conduct inspections across various industries.

Frequency of Inspections

The frequency of labor inspections in Eswatini is influenced by several factors. These include risk assessment, where businesses in high-risk industries or those with a history of violations might be inspected more frequently. Inspections can also be triggered by specific complaints from workers alleging labor law violations. Additionally, the availability of inspectors and government resources impacts the overall capacity for frequent inspections.

Inspection Process

The inspection process typically involves a notice, which may be scheduled or unannounced. Inspectors usually present official credentials upon arriving at the workplace. They then review documents such as employment contracts, payroll, health and safety logs, and other relevant records. Inspectors may also tour the workplace, observing work conditions and practices, and interview employees and managers to gather further information. Following the inspection, they generate a comprehensive report detailing findings, including potential violations and recommendations for addressing them. Authorities can issue warnings, fines, or orders to correct non-compliance. Serious or repeated violations may lead to business closure or even criminal prosecution.

Importance of Compliance Audits

Compliance audits play a crucial role in protecting workers' rights by identifying and rectifying labor law violations. They ensure workers' rights to fair wages, safe work environments, proper contracts, and protection from discrimination. Regular compliance audits also ensure fair competition by preventing businesses from gaining an unfair advantage by disregarding labor laws. Furthermore, the potential for audits encourages proactive compliance and promotes a working environment where labor laws and regulations are respected.

Consequences of Non-Compliance

Employers in Eswatini found violating labor laws can face various consequences. These include fines as outlined by the Industrial Relations Act and other labor regulations, with penalties increasing based on severity and repetition. Authorities can issue orders requiring the employer to rectify violations, such as addressing safety hazards or providing back pay to workers. In cases of severe or repeated non-compliance, businesses risk temporary or permanent closure. In exceptional cases involving forced labor, human trafficking, or egregious safety violations, employers may face criminal charges.

Reporting and whistleblower protections

In Eswatini, labor law violations can be reported through various channels. The primary channel is the Department of Labor, where complaints can be lodged by phone, email, online, or in person at local offices. Unionized workers can report violations to their union representatives, who can provide support and escalate concerns to the relevant authorities.

Whistleblower Protections in Eswatini

Eswatini has limited specific legal protections for whistleblowers. The Industrial Relations Act (2000) contains a provision prohibiting employers from dismissing or retaliating against employees who participate in lawful proceedings under the Act. This could offer some limited protection in cases of reporting labor violations. The Prevention of Corruption Act, while primarily focused on corruption, contains some broader whistleblower protection provisions that might apply in limited and specific labor-related scenarios.

Practical Considerations for Whistleblowers

Whistleblowers should gather relevant evidence such as documents, communications, and witness accounts to support their allegations. If there is a fear of retaliation, options for submitting reports anonymously should be explored. It is also advisable to consult with a legal professional, a trusted workers' rights organization, or a union before making a report, as they can guide on the process, potential risks, and limited legal protections.

Challenges and Limitations

Eswatini lacks a dedicated, comprehensive whistleblower protection law, making it harder for employees to expose wrongdoing without the fear of repercussions. Even with existing legal provisions, whistleblowers may still face subtle forms of retaliation. Enforcement of protections can also be inconsistent.

International labor standards compliance

Eswatini, a member of the International Labour Organization (ILO), has ratified several core ILO conventions, but still faces challenges in fully aligning its domestic law and practices with these standards.

Key ILO Conventions Ratified by Eswatini

Eswatini's commitment to core labor rights is outlined by its ratification of some fundamental ILO conventions:

  • Forced Labour Convention, 1930 (No. 29): This convention prohibits forced or compulsory labor in all forms.
  • Freedom of Association and Protection of the Right to Organise Convention, 1948 (No. 87): This convention upholds workers' and employers' rights to form and join organizations, and bargain collectively without interference.
  • Right to Organise and Collective Bargaining Convention, 1949 (No. 98): This convention protects workers from anti-union discrimination and promotes collective bargaining mechanisms.
  • Equal Remuneration Convention, 1951 (No. 100): This convention ensures equal pay for men and women for work of equal value.
  • Discrimination (Employment and Occupation) Convention, 1958 (No. 111): This convention prohibits discrimination in employment and occupation based on race, color, sex, religion, political opinion, national extraction, and social origin.
  • Worst Forms of Child Labour Convention, 1999 (No. 182): This convention requires immediate action to eliminate the worst forms of child labor.

Incorporation into Domestic Law

Eswatini has made efforts to integrate some principles of these ILO conventions into its national legal framework:

  • The Constitution of the Kingdom of Eswatini: This constitution enshrines some fundamental labor rights, including freedom of association, and non-discrimination protections (though with limitations).
  • Industrial Relations Act (2000): This primary labor law outlines core labor standards covering working hours, wages, occupational safety, the right to strike (with limitations), and protection against some forms of discrimination.
  • Specific Laws on Child Labor: Eswatini has laws that address child labor, setting minimum working ages, and outlining hazardous occupations.

Areas for Improvement

Despite progress, there's significant room for Eswatini to improve its compliance with international labor standards:

  • Collective Bargaining Rights: Labor laws and practices place restrictions on collective bargaining rights and actions, needing alignment with ILO standards.
  • Freedom of Association: While legally recognized, freedom of association for workers faces obstacles in practice, particularly outside of traditional unions.
  • Child Labor: Despite legal prohibitions, child labor persists, especially in agriculture and domestic work.
  • Enforcement: Overall enforcement of labor laws requires strengthening to ensure adequate protection of workers' rights.

Eswatini continues to engage with the ILO in reviewing and improving its labor laws and practices. The government consults with worker and employer representatives to refine legislation and achieve greater compliance with international labor standards.

Rivermate | A 3d rendering of earth

Hire your employees globally with confidence

We're here to help you on your global hiring journey.