Labour minister reduces threshold for designated employers
After consultation with the Employment Service Board (ESB) the labour, industrial relations and employment creation minister, Utoni Nujoma, has reduced the prescribed threshold requirements for Designated Employers (DEs) from the current 25 to 10 employees. Notice of the threshold reduction was published in the Government Gazette on September 30, 2022.
The threshold reduction means that any employer with 10 employees and above is now regarded as a DE and is required to comply with the provisions of Part three of the Employment Services Act as of 30 September 2023.
The ministry’s Acting Executive Director, Otniel Podelwiltz, explained the legislation makes a provision for any DE to register with the ministry and report any vacancies within its establishment. This enables the ministry to link the DEs and also to register jobseekers in terms of employment through the Namibia Integrated Employment Information System (NIEIS). Additionally, DEs are also required to submit profiles of establishments on an annual basis.
The NIEIS collects, stores and updates information concerning the relevant details of jobseekers; vacancies in the labour market; specialised skills and qualifications possessed by Namibian citizens and permanent residents and employers in Namibia.
“The change of the threshold is prompted to promote inclusivity and allow extension to the informal sector, which forms a large part of the Namibian labour force. In addition, this will likely be maximising employment opportunities for jobseekers, as many employers are now required to comply with the new requirement,” Podelwiltz stated.
Last year alone, the ministry registered 494 DEss and placed 2200 jobseekers for employment in various establishments across all sectors of the economy.
“It is unlawful for a DE to fill a vacancy without considering in good faith any suitably qualified job-seeker referred to him/her/ it by the ministry. Any DE who contravenes or fails to comply with this requirement commits an offence and on conviction is liable to a fine not exceeding N$20 000 or imprisonment not exceeding two years or both such fine and imprisonment,” Podelwiltz stated.
The ministry therefore urges all qualified employers to register on the system and to start complying instantly.