New justice minister takes on hospitality sector over alleged worker exploitation

Newly appointed minister of justice and labour relations Wise Immanuel has taken a firm stand against “a growing trend of employee exploitation in Namibia’s hospitality sector”.

Alleged exploitative labour practices at De Duine Hotel at Henties Bay surfaced on social media last week, after a controversial gratuity policy was seemingly imposed on waiting staff.

The hotel has come under fire over a clause in its employment contracts, allowing management to classify daily tips received by waiters as “advance loans”, and to later deduct a portion of their monthly salaries to recover this.

Any gratuities exceeding a management-set threshold are considered extra income, according to this document, raising red flags about legality and fairness.

“At month end, a portion of total gratuity received by a waiter will be logged as a loan against their salary up to an amount determined by management. This amount may vary from time to time.

“All gratuities received that exceed the determined loan amount will remain as extra income for the waiter. For example, if the hotel determines that N$1 300 will be logged as a loan, then all gratuities received that exceed that amount will be deemed an additional income for the waiter,” the letter sent to staff at the hotel reads.

The letter, circulated on social media, has led to public outrage.

Immanuel yesterday told The Namibian: “The matter regarding the De Duine Hotel came to my attention earlier this morning, and I have since forwarded it to the executive director, caring for labour relations, to assign a team to conduct fact finding to validate the allegations for more appropriate intervention.”

He said under his leadership, employee welfare will be the central focus for the next five years.

“Should the allegations be true, it is something the Ministry of Justice and Labour Relations views in a serious light, and it will not be condoned going forward. All employers in this country need to awake to the reality that we have started a new chapter – one that is intolerant of any form of actual or potential abuse/exploitation of employees by their employers.

“Employees’ well-being shall be our preoccupation for the next five years, effective 22 March 2025. This tone must echo in all employment places in this country,” Immanuel said.

Meanwhile, De Duine Hotel owner Nico van der Westhuizen yesterday insisted the proposal was not final and stemmed from efforts to comply with recent changes to the Income Tax Act and new minimum wage regulations.

“It is not that we’re doing something illegal. We are still consulting with a labour consultant. The law now says we must declare all revenue from personnel. If we don’t, we’re in trouble,” he said.

While he claims the intent was to “help staff” by allowing daily access to cash while remaining compliant with tax requirements, he said the hotel’s “internal communication” suggested the tips should be withheld, logged as loans, and only partially returned.

Van der Westhuizen acknowledged the backlash on social media, but dismissed it as misinformation.

“It’s a pity someone who wasn’t informed got hold of that document. We’re still discussing it. It was just one of a few options,” he said.

He said he had approved the draft as “an option for discussion”.

“Nobody is being forced to sign the agreement. And even if they don’t sign, nobody will be fired. We care for our employees,” he said.