The North Gauteng High Court in Pretoria ruled this morning that state-owned arms utility Denel must urgently pay over unemployment insurance and tax deductions from employees salaries.
The High Court made the ruling after trade union Solidarity brought an urgent application to compel Denel to make the payments. Denel has only been able to pay a certain portion of its employees’ salaries for June and July. Certain statutory compulsory payments such as PAYE, UIF and the skills development levy were indicated on salary slips, but have not been paid over.
Denel had applied to the South African Revenue Service for a payment deferment and said it remains committed to paying staff salaries and unemployment insurance.
Solidarity represents around 1 000 of Denel’s more than 3 500 employees, was alerted to the non-payments by the Denel pension fund early in June.
Anton van der Bijl, head of Solidarity’s Legal Services, said today’s High Court ruling “is a major victory for Solidarity and the Denel employees however, it is regrettable that we had to go to court just to draw Denel’s attention to payments that it should have made a while ago.”