11/06/2025
NEDLAC LABOUR LAW REFORMS
Some of the amendments, negotiated by Organised Labour, Organised Business, and Government, at NEDLAC, to the following labour laws, to be implemented towards the end of 2025, are the following:
A. LABOUR RELATIONS ACT
1. EXTENSION OF COLLECTIVE AGREEMENTS
Collective agreements, concluded in bargaining councils, regulating terms and conditions of employment, will not bind an employer of a new business that employs less than 50 employees, and that employer’s employees. A “new business” is one that has been in operation for less than two years, but excludes: (a) a new employer contemplated in section 197(1), and (b) a business formed by the division or dissolution of any existing business.
2. LIMITATION OF REMEDIES AND COMPENSATION FOR HIGH-PAID EMPLOYEES
High-paid employees (those earning more than R 1.8 million per annum), for the period from May 2024 to April 2025, will only be entitled to reinstatement in cases of automatically unfair dismissal, but in other dismissals, will be restricted to compensation as a remedy.
Compensation that could be paid to high-paid employees, in unfair dismissal and unfair labour practices cases, will be capped to a maximum amount of R 1.8 million, except in cases of automatically unfair dismissals and unfair labour practices involving whistleblowing.
The Minister will issue a notice, which will take effect on the same date as the applicable provisions in the Amendment Act, amending the amount of R 1.8 million, in line with the Consumer Price Index, for the period from 30 April 2025, until the date that the provisions come into effect.
3. QUALIFYING PERIOD FOR FULL PROTECTION AGAINST UNFAIR DISMISSAL
During the first three (3) months of employment, or, if it is a longer period, a period of probation that is specified in a contract of employment and is both reasonable and operationally justifiable, new employees will have limited protection against unfair dismissal, and will only be able to bring claims for unfair dismissal involving an automatically unfair dismissal or discrimination.
4. INQUIRIES BY ARBITRATORS IN DISMISSAL CASES
The required consent of an employee, for inquiries by arbitrators in dismissal cases, may be given in a contract of employment.
5. REVISION OF UNFAIR LABOUR PRACTICE DEFINITION
Disputes relating to promotion, demotion, probation, training and benefits, and a refusal to reinstate or re-employ former employees, will be removed from the definition of an unfair labour practice. Therefore, justiciable unfair labour practices will be limited to disputes about unfair suspensions, unfair disciplinary action short of dismissals, and protected whistleblowing. However, a transitional provision will apply delaying its application to the public service for one year to allow collective agreements dealing with issues such as promotion disputes to be negotiated in the public service bargaining councils.
6. TEST FOR PROCEDURAL FAIRNESS
A fair procedure will be one in which the employee has been given an adequate and reasonable opportunity to respond to the reason for the dismissal. This will not apply to retrenchments and is consistent with the Dismissal Code agreed to by the parties for publication.
B. BASIC CONDITIONS OF EMPLOYMENT ACT (BCEA)
1. TWO WEEK’S SEVERANCE PAY
Severance pay is increased to at least two week’s remuneration for each completed year of continuous service with that employer, provided that the entitlement to severance pay equal to two week’s remuneration only applies to a completed year of service with that employer commenced after the commencement of the Amendment Act.
2. “ON CALL” WORKERS
New provisions, applicable to Employees who earn less than the threshold determined in terms of section 6(3) of the BCEA (currently R 261 748.45) (“the threshold”), and who are required to be available for work, will be introduced.
3. CONSOLIDATION OF PROCEEDINGS
If an employee institutes proceedings in respect of any claim under an employment law, the Labour Court or the arbitrator hearing the matter, may also determine any claim for an amount that is owing to that employee in terms of the BCEA or the National Minimum Wage Act.
C. EMPLOYMENT EQUITY ACT (EEA)
Disputes which remain unresolved after conciliation, may, at the election of the employee, be referred to the CCMA for arbitration, if the employee alleges unfair discrimination on the grounds of harassment, or, in any other case, that employee earns below the threshold.