Labour laws set for major overhaul

Proposed changes to South Africa’s labour laws could mark a significant shift for traditional and non-traditional workers, as the country moves to modernise its employment landscape. From strengthening retrenchment protections to extending labour rights to gig workers, the reforms aim to address growing employment insecurity and legal ambiguity.

The amendments stem from the National Economic Development and Labour Council (NEDLAC), which earlier this year published its Report on the Labour Law Reform Process, alongside four proposed amendment Bills. The draft legislation includes 47 amendments to the Labour Relations Act (LRA), 13 to the Basic Conditions of Employment Act (BCEA), two to the National Minimum Wage Act (NMWA), and three to the Employment Equity Act (EEA).

The Bills must still pass through state legal vetting, Cabinet approval, and a parliamentary process that includes public consultation. Until then, debate remains open – particularly because many of the proposals did not have unanimous support from NEDLAC’s three social partners: government, organised business, and organised labour.

“It is crucial for employers to keep abreast of any developments in the labour law sphere,” say Werksmans Attorneys, “so as to ensure that employers are not caught off-guard by significant changes in the labour law landscape and to ensure that proper preparations can be made to avoid uncertainty and unnecessary disputes.”

Retrenchment reform

In a labour market grappling with rising job losses – 74 000 in the first quarter of 2025 alone – the proposed amendments could offer greater protection to retrenched workers.

Among the most notable proposals is a change in how large-scale retrenchments are facilitated. Authority over facilitation rules would shift from the Minister of Employment and Labour to the Commission for Conciliation, Mediation and Arbitration (CCMA), bringing decision-making closer to the front lines of labour disputes.

Norton Rose Fullbright highlights another key development: “The current regime which only allows for the procedural fairness in retrenchments to be challenged prior to the retrenchments would change, allowing all aspects of a retrenchment dismissal to be challenged after the dismissal, thereby rolling back to the legal position which existed prior to the introduction of section 189A(13) to (17) of the LRA.”

This would mean employees could challenge the procedural and substantive fairness of a retrenchment after it has taken place – significantly expanding post-dismissal recourse.

Bowmans notes that disputes involving facilitated retrenchments could also go straight to the Labour Court, bypassing the usual conciliation step.

“These changes effectively restore the legal position on the process for challenging procedure that prevailed before the introduction of section 189A of the LRA.”

Financial support for retrenched workers is also on the table. A proposed amendment to the BCEA would double the statutory minimum severance pay – from one week to two weeks per completed year of service, although this would apply only to future service.

Gig workers enter the fold

With more than two million South Africans working in the gig economy – an expanding sector encompassing ride-hailing drivers, food delivery couriers, and platform freelancers – the amendments seek to address a longstanding legal blind spot.

Both Bowmans and Werksmans point to a proposed Schedule 11 to the LRA, which redefines “employee” to include anyone “who works personally for a person that is not a client or customer of any profession, business or undertaking carried on by that individual”. This would extend labour rights to platform-based workers currently classified as independent contractors.

According to Bowmans, the new definition would help “to extend the right to freedom of association, as well as organisational and bargaining rights, to a wider category of employees”.

If passed, gig workers could gain:

• protection against unfair dismissal and deactivation from platforms;
• the right to access the CCMA for dispute resolution;
• eligibility for basic conditions such as minimum wage, paid leave, and rest periods; and
• protection from arbitrary treatment or algorithmic discrimination.

Platform companies such as Uber, Bolt, and Mr D would likely face new obligations, including formal employment contracts and contributions to statutory schemes – the Unemployment Insurance Fund and the Compensation Funde.

In addition, section 9B of the BCEA introduces safeguards for “on-call” workers – those required to be available for work without guaranteed hours. Employers would need to clearly communicate availability expectations, notice periods for shifts, and cancellation policies. These changes aim to reduce the unpredictability and vulnerability often associated with flexible or part-time work.

Simplifying dismissals while encouraging hiring

Another major element of the reform package is a redefinition of unfair labour practices and dismissal procedures. Under the proposed amendments, disputes over promotions, demotions, probation, training, and benefits would no longer be classified as unfair labour practices – effectively limiting the jurisdiction of the CCMA in these areas. However, a one-year transitional arrangement is proposed for the public sector to preserve existing agreements.

Bowmans and Norton Rose Fulbright both highlight a new provision clarifying that a fair dismissal procedure requires only that the employee be given “an adequate and reasonable opportunity to respond to the reason for dismissal”, subject to any applicable collective agreement. This reflects the intent of the draft Code of Good Practice on Dismissal, which moves away from formal, adversarial processes.

A further proposal introduces a three-month probationary period – during which new employees would not be protected against general unfair dismissal. As Norton Rose Fulbright notes, the protection against automatically unfair dismissals (for example, dismissals involving discrimination) would still apply.

This measure is designed to encourage the hiring of first-time workers by reducing early-stage legal risks for employers.

What lies ahead

The road from proposal to legislation is far from complete. The draft Bills will require extensive legal and parliamentary scrutiny, and more amendments may arise as social partners and the public weigh in.

Still, the proposals suggest a shift: a legal framework more aligned with a flexible, modern labour market, yet one that seeks to uphold fairness and protect vulnerable workers. As the shape of South Africa’s labour laws evolves, employers and employees alike will need to stay alert – and prepared.