During a Printing SA webinar, Michelle Naidoo, partner at Mooney Ford Attorneys, presented a webinar where she conducted a presentation on labour law amendment bills, namely the employment laws amendment bill and labour relations amendment bill.
She discussed the objectives of the amendment bills, and emphasised some positive amendments, especially for smaller businesses:
– Changes in the labour market and the nature of work from typical working arrangements (full time and structured to atypical).
– Consolidating dispute resolution for CCMA and BC and enforcement disputes.
– Recognition of disputes which concern non-compliance by employers with payment of benefit contribution, including pension fund contribution. (New)
– Amendments to laws to provide for parental leave, shared leave between parents. (New)
– Enhanced severance pay for retrenches. (New)
– Relief for newly established business from compliance with BC collective agreements and procedural fairness. (New)
PART 1
Employment Laws Amendment Bill: Key Amendments:
The Basic Conditions of Employment Act, (BCEA) 1997
Expanded Definition of Employee:
– Performs work/ provides services for another.
– Not conducting an independent trade, profession or business for a client or customer.
– Includes a worker as defined in the NMWA, 2018 – ‘An individual is an Employee, unless the Employer demonstrates that:
a. They are not subject to the direction/control of the Employer;
b. They are not part of the Organisation of the Employer;
c. They do not perform work/provide services on behalf of and under the terms set by the Employer.
Severance Pay for Retrenchment:
• On the grounds of Operational Requirements or Insolvency.
• Severance pay must equal at least two weeks remuneration for each completed year of continuous service with the Employer.
• Prospective application proposed meaning that two weeks will only apply to service period once the amendments take effect.
On-Call Contract Workers
• Recognised as vulnerable to abuse (job/income security, unpredictable/irregular working hours, unfair dismissal).
• Entitled to treatment no less favourable that normal workers.
• Does not apply to Employers with less than 10 Employees.
Notice Requirements:
– Employers are required to specify: maximum hours of work; period of employee availability:
Reasonable notice periods to report for work and cancellation of work:
• Determined by the nature of the business, the ability to foresee the circumstances necessitating same, the effects of cancellation on the employee, failing which the employer may not require the employee to work and is required to remunerate the employee for any work cancelled.
Secondary Employment:
• Where employees fulfil their obligations to be available for work, an employer may only prevent them from working for another person for:
– Genuine operational reasons including protecting their sensitive information, intellectual property rights and commercial reputation or; preventing a conflict of interests that cannot be otherwise managed.
– The reasons are to be stated in the employee’s written particulars of employment.
Parental leave | Van Wyk Case
Beneficiaries: parents of a new-born child
Entitlement:
• To a parent of a newborn, adoptive parent or commissioning parent.
• Four months (if single parent or the only employed parent).
• If both are employed, collectively entitled to four months and 10 days.
• An employee, other than a female employee who gives birth, is not entitled to parental leave more than once in 12 months.
Notification:
An Employee must give notification to an Employer:
• Of the date of commencement of parental leave and the duration.
• At least four weeks before commencement or as soon as reasonably practicable.
Additionally, where parents are employed by different employers, they are required to:
• Submit an agreement concerning parental leave, if no agreement the birthing parent is entitled to elect the apportionment of leave from the 4 months entitlement.
• If four months taken by birthing parent, 10 days entitlement to the other parent.
The Unemployment Insurance Act (UIA), 2001
Proposed Amendments (Entitlements to Parental Benefits):
• If single contributor (or miscarriage/stillbirth) = entitled to benefits for a period of 17.32 weeks.
• If two contributors = 17.32 weeks plus 10 days with no one contributor receiving benefits for more than 17.32 weeks
• A contributor who is pregnant and gives birth to a child is entitled to the parental benefits for maternity for any period of pregnancy or delivery and the period thereafter.
• Other categories – parental benefits may only be claimed in respect of the period not working in order to care for the child and only once in any 12 month period.
• A contributor is not entitled to parental benefits unless they were in employment for at least 13 weeks before the date of application for parental leave.
Proposed Amendments (Application Process):
• Applications must be made in the prescribed form, either electronically, at an employment office or any other prescribed place.
• May be made before or after childbirth / date of adoption and within twelve months of such date.
• A copy of the parental leave agreement and application(s) for parental leave must be submitted.
• A claims officer must investigate the application and may request further information.
• If the application complies with the provisions of this Chapter, the contributor must approve the application, determine the amount of benefits, the period for which they are to be paid and how the benefits are to be paid.
• If the application does not comply with this Chapter, the contributor must advise the applicant either electronically or in writing, that the application is defective with accompanying reasons.
The Minimum Wage Act (MWA), 2018
Proposed Amendments:
• Every worker is entitled to payment of wages, and every employer must pay wages to its workers that is no less than the national minimum wage.
• The national minimum wage excludes any payment made to enable a worker to work including any transport, equipment, tool, food or accommodation allowance, unless specified otherwise in a sectoral determination.
The CCMA may aid an employee earning less than the threshold prescribed by the Minister, to enforce any award in favour of that employee including but not limited to: instructing and paying the fees of a sheriff provided that the employee remains responsible in law for the enforcement of the award.
PART 2
Proposed Amendments to The Labour Relations Act, 1995:
Bargaining Councils
Collective Agreements:
A collective agreement concluded in a bargaining council, regulating the terms and conditions of employments does not bind:
• An employer of a new business that employees less than 50 employees and the employer’s employees. (New)
For the purposes of this section, a new business is one that has been in operation for less than two years, excluding:
• A business transferred in terms of a scheme of arrangement or compromise entered into to avoid winding-up or sequestration for reasons of insolvency.
• A business formed W the division or dissolution of any existing business.
ССМА
The Commission may make rules regulating:
• The practice and procedure in connection with the facilitation of a dispute, including the initiation, form, content and use of facilitation to the extent that these matters are not included in the regulations.
• The referral, determination and enforcement of claims for violations of the NMWA or any other employment law, including the payment by employers of security and fines. (New)
• If a Commissioner finds that a request for postponement of a hearing is frivolous, vexatious or could have reasonably been avoided, the Commissioner may charge the responsible party a postponement fee. (New)
Dismissal
Proposed Amendments:
- Fairness
Amendments:
• Take into account the relevant Code of Good Practice.
• Subject to any collective agreement, a fair procedure is one in which the employee has been given an adequate and reasonable opportunity to respond to the reason for dismissal.
• This section does not apply to new a new Employee (first three months of Employment or reasonable and operationally justifiable probation period specified in contract). (New)
- Facilitation
Amendments:
• Shifts power from the Minister to the CCMA to make rules on how facilitation must be conducted.
• A registered trade union or the employees who have received notice of termination may not give notice of a strike, if it has referred a dispute concerning fairness of dismissal to the Labour Court or refer a dispute to the LC if it given notice of a strike.
• Expanded powers of the CCMA.
• Limited remedies available to high-earners.
Automatically Unfair Dismissals:
In the course of arbitration, a Commissioner may proceed to consider a matter dealing with section 187 (d – exercise of statutory rights), (e – pregnancy) and (f – discrimination) after taking into account:
a) the complexity of the questions of law and fact raised in the matter;
b) the public interest;
c) speed dispute resolution: and
d) the submissions of the parties (New)
NB -Does not apply to high earners (New)
High Earners:
• Employees earning above a set threshold (+/- R1.8 million/year) will receive limited compensation for disputes regarding unfair dismissals and unfair labour practices. Reinstatement or re-employment does not apply to high-earners unless dismissal was automatically unfair.
• The Minister will determine the cap and it will be adjusted annually (increased or decreased by the Minister according to Consumer Price Index. (New)
Duplication of Claims:
• An employee who has referred a dispute about the fairness of dismissal may not bring an additional claim, arising from the same facts, in respect of the unlawfulness of that dismissal.
• An employee who has brought a claim in respect of the unlawfulness of a dismissal may not also refer a dispute about the fairness of the dismissal, arising from the same facts. (New)
Limitation of Liability:
No person exercising a power or performing a function under an employment law that gives effect to the LRA, is liable for any damage or loss caused by that exercise or performance or failure thereof unless: (new)
• such exercise or failure is unlawful, grossly negligent or in bad faith.
• applicable to any person appointed or employed to exercise a power/perform a function.
• any person or entity required to exercise a power or perform a function.
Presumption of Employment
An individual is an employee unless the employer demonstrates:
– Not subject to direction and control.
– Does not provide services for customers or clients on behalf of the employer.
– Is not part of the organisation or the employer.
Undertying Principles of the Labour Law Amendments
Enhanced Efficiency In Dispute Resolution:
The amendments aim to simplify procedures, reduce delays, and promote faster resolution of labour disputes through streamlined processes and expanded roles for institutions such as the Commission for Conciliation, Mediation and Arbitration.
Promotion of Early, Non-Adversarial Resolution:
Greater emphasis is placed on facilitation and structured engagement to resolve disputes before escalation to litigation or industrial action.
Balancing Flexibility with Protection:
The law seeks to provide employers with greater operational flexibility (e.g. in dismissals and retrenchments) while maintaining core protections for employees against unfair treatment.
Targeted Protection of Vulnerable Employees:
The amendments reinforce safeguards for categories of employees requiring additional protection, including those exercising parental rights and those affected by unfair dismissal.
Underlying Principles of the Amendments
Limitation and Rationalisation of Remedies:
Remedies for unfair dismissal are refined-particularly for high-income earners, to ensure proportionality, reduce excessive litigation, and promote certainty.
Strengthening Institutional Roles:
Key bodies, including the Essential Services Committee and the CCMA, are given enhanced authority to regulate processes and ensure effective implementation.
Orderly and Democratic Collective Bargaining:
Amendments relating to strikes (e.g. secret ballots and regulated procedures) promote accountability, compliance, and stability in industrial action.
PART 3
Broad-Based Black Economic Empowerment
Amendment Act No. 53 of 2003 as amended by the B-BBEE Act 46 of 2013; Draft Statement 400 of 2026 published in January 2026
Key Amendments:
• Definition of B-BBEE transaction means any transaction, practice, scheme or other initiatives which affects, or may affect, the B-BBEEE compliance of any person.
• Definition of Black people aligned to the Employment Equity Act (EEA).
• Definition of fronting B-BBEE Practices.
• Amendments to investigation processes.
• Amendments to offences and penalties (up to 10 years imprisonment/fine or both) for any contraventions.
• Codes of Good practices remain in effect unless repealed.
Amendments to Scorecards:
• Complete overhaul to the codes regulating score cards.
• Most significant in my assessment is the amendments to statement 400, General principles for measuring enterprise and supplier development.
New Transformation Fund under ESD:
• A new mandatory contribution is proposed under the Enterprise and Supplier Development (ESD) element as a substitute for points on supplier development and enterprise development.
• 3% of Nett Profit After Tax in exchange for full points for this element.
• Subject to the 40% sub-minimum, meaning failure to meet the requirement could trigger an automatic B-BBEE level drop.
Impact:
• This proposal introduces a direct and recurring cost that many businesses have not previously budgeted for. For companies operating on thin margins, the cash flow, forecasting, and governance implications could be significant and will need to be assessed early.
New Transformation:
An aggregated mechanism to accelerate economic transformation and support Black enterprises, particularly exempted micro enterprises (EMEs) and qualifying small enterprises (QSEs). It aims to pool resources from measured entities to create a scalable impact rather than fragmented individual ESD initiatives.
As reported in the media, it is proposed that the Transformation Fund be established as an alternative mechanism to obtain ESD recognition. Currently the framework for measuring an entity’s ESD score in terms of the Generic Codes is based on the entity’s contributions to enterprise development and contributions to supplier development, with a target of 2% of NPAT. Supplier development has 10 weighting points while enterprise development confers 5 weighting points on the generic scorecard.
The proposed target for contributions to the Transformation Fund is 3% of NPAT, which is proposed to award 20 total points for the ESD element, compared to the aggregate 3% PAT contribution to enterprise development and supplier development affording only 15 points.
Measured entities will be entitled to choose whether to make contributions to the Transformation Fund or to make ESD contributions per the existing framework. It is, however, not entirely clear if ESD contributions to both will be permitted, though this seems to be implied in the Draft Amendments.
ESD To Become a More Dominant Element:
- Materially Increased Weighting for Both QSEs and Generic entities.
- This shift places sustained pressure on ESD performance and reduces the ability to offset weaker performance in one area with stronger results elsewhere on the scorecard.
Changes to Targets for QSE’s:
QSE is defined as:
Allocation of new weighting points to procurement from 100% Black-owned and Black-woman-owned entities (including QSEs and EMEs) as well as suppliers that are 100% Black-owned
- The introduction of 15% procurement target for 100% black owned EMEs and QSEs each
- The introduction of 25% procurement target for 100% black owned enterprises
- The introduction of 25% procurement target for enterprises that are between 51% to 99% black owned
- The introduction of 12% procurement target for 100% black women-owned enterprises
More Evidence Driven Verification:
- More robust and outcome focused.
Contributions will need to demonstrate:
– A documented needs analysis linked directly to beneficiary support.
– Measurable and defensible outcomes tied to that support.
– Annual monitoring and evaluation, supported by verifiable records, reports, and follow-up evidence.
Light evidence and once off initiatives will be inadequate.
Be Proactive:
• Budget forecast the impact of the 3% NPAT on your enterprise.
• Review and clean up supplier data, and identify gaps against the proposed procurement categories.
• Review fixed higher supplier costs and conduct verification of BBBEE status.
• Stress-test your ESD strategy, particularly if you are a QSE or rely heavily on ESD for points.
• Begin building an audit-ready ESD evidence file, with a clear focus on Inputs, outcomes, ongoing measurement and assignment of responsibilities.
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