When will the new parental and associated leave provisions come into effect? What is the future of the Employment Tax Incentive (ETI) given the National Minimum Wage Act?

Welcome to this edition of the Labour Law Newsflash.

At Our Annual Employment Conference, which is taking place on 13 March 2019, a panel of esteemed legal minds, thought leaders and futurists will be further debating the matters in this edition as well as a host of related topics. To be part of this conversation, and gather must-know insights for your HR and LR department, register now.

What is the norm?

No longer is an employee, who works from 8 to 5, the norm in the workplaces. Many, whose work allows for it, have opted to pursue different working options such as freelancing, working part-time or telecommuting.

The rise of the Gig Economy – which is so-called as their members work from ‘gig’ to ‘gig’ as opposed remaining in the full-time employ of one employer – has not just been seen in the United States. According to the Millennial Survey Report, which was conducted by Deloitte in 2018 and surveyed millennials over 36 countries, the majority of the respondents stated that they are already part of this economy or do part-time work.

Given the fact that increasing numbers of people are choosing the gig lifestyle over full-time employment, the question has to be asked as to whether or not labour legislation in South Africa affords this new category of workers the employment protection required. The other question that is asked is whether they need any protection at all.

Only employees are protected under SA labour law

Up to this point, SA labour law has not afforded any protection to workers who are not employees of an organisation. In fact, these laws specifically exclude an ‘independent contractor’ or freelancer. This is even though other countries’ labour laws, such as those in the  United Kingdom, have begun to recognise gig workers.

At the end of last year, President Ramaphosa signed a number of pieces of labour legislation into law. What is significant to note about these laws is that the new National Minimum Wage Act (NMWA) is extended to protect employees in addition to workers. This is specifically made a wider definition and maybe a sign of things to come. This means that even though someone may not be in an employment relationship with an employer, that person is still afforded the protection of the NMWA.

A few things to iron out

One of the most talked-about provisions of the LLAA is the allocation of parental leave. We have it that the commencement date for this provision will be 1 March 2019. However, as can be seen with the postponement of the implementation date of the NMW last year, this date may be further delayed and 1 April is more likely.

The amendments to the Unemployment Insurance Fund (UIF) Act, allowing employees to claim from the UIF during their parental leave, still need to be implemented. So if the parental leave implementation goes ahead on 1 April, and the UIF Act amendments have not been implemented, these employees will not be able to make any claim from the fund. We expect both to be initiated at the same time.

Moving on to the Employment Tax Incentive (ETI)

The table below sets out the current dispensation in respect of the ETI. Currently, the greatest tax relief for employers arises when youth who are employed earn between R2000 and R3500 per month. However, since 1 January 2019, the NMW is set at R3500 per month which means that only those youth earning R3500 pm would generate the R1000 per month ETI rebate. If not amended, this could detract from the many drives to bring about youth employment. Hence as was communicated in the Budget Review, the table below will be revisited and it is likely that the R1000 ETI earnings thresholds will be extended beyond the R3500 per month monthly remuneration level and then taper off. We will have to wait until we have clarity on this as well as whether or not employers would be able to backdate the claims.

, Are Labour Laws Keeping Up With the Future of Work?, Global Business Solutions

Our information is that for the first time since 2013 the maximum ETI benefit of R1000 per month will be at a monthly earning threshold of R4500 and not R4000 and that the maximum threshold for a benefit will be R6500 per month and not R6000. This is likely to maintain the current youth employment momentum.

We look forward to discussing these and other topics with you at our Annual Employment Conference on 13 March 2019. Click here for the brochure and detailed programme of the event.

Kind regards
Johnny and Grant

, Are Labour Laws Keeping Up With the Future of Work?, Global Business Solutions


Labour Law Newsflash: Derivative Misconduct case law

Posted on July 4, 2019

New Critical Skills Survey

Posted on July 4, 2019

How to set your business’ EE targets in line with the Envisaged Amendments to the Employment Equity Act

Posted on June 28, 2019

Retrenchment Mistakes Employers Must Avoid

Posted on June 21, 2019

Amendments to the B-BBEE Codes of Good Practice

Posted on June 4, 2019

Work-Based Learning Programme Agreement Regulations

Posted on May 24, 2019

Strong Leadership Required

Posted on May 16, 2019

B-BBEE News snippets

Posted on May 10, 2019

Designated employers’ duty to inform and consult employees on Employment Equity Act

Posted on April 16, 2019

Parental Leave is in the making, but what about leave to care for elderly parents?

Posted on April 11, 2019

B-BBEE News: Ownership, Fronting and the success of YES

Posted on April 4, 2019

Equal Pay and Equal Treatment – the next big thing

Posted on March 29, 2019

Insights from our Annual Employment Conference 2019

Posted on March 15, 2019

Workplace Skills Plan and Annual Training Report submission tips

Posted on February 15, 2019

New CCMA Rules & TES Ruling

Posted on January 31, 2019

Jonathan Goldberg appointed to NMW Commission

Posted on January 30, 2019

Various B-BBEE related matters, including how to determine the validity of a B-BBEE Certificate

Posted on January 25, 2019

Only 46 Days Left Before the Employment Equity Reporting Deadline

Posted on December 7, 2018

The importance of Discretionary Grant Funding

Posted on November 30, 2018

Labour Newsflash: a look at 2018

Posted on November 23, 2018

Newsflash: National Minimum Wage

Posted on November 22, 2018

Are Pay Practices Still Discriminating Against Designated Groups?

Posted on November 8, 2018

Sustained quality service is rooted in the health of the provider

Posted on November 1, 2018

BEE Codes: Youth Employment Services (YES) Amendments and Practice Note 1

Posted on October 26, 2018

As fuel costs soar has the time come to re-think remote working?

Posted on October 5, 2018

Labour Law Newsflash: Recent Constitutional Court Rulings

Posted on September 27, 2018

Draft Picketing Rules issued for public comment

Posted on September 27, 2018

Does Your Organisation Have a “Learning Culture”?

Posted on September 14, 2018

The benefits of sound ergonomics in the workplace

Posted on September 6, 2018

B-BBEE Codes: Youth Employment Services (YES)

Posted on August 30, 2018

TES beyond the Con Court: It’s not that complicated.

Posted on August 23, 2018

How to determine if an Employee is part of a Designated Group

Posted on August 16, 2018

Building resilience

Posted on August 10, 2018

Labour Law Newsflash 7/18: Latest case law on Equal Pay for Work of Equal Value

Posted on July 25, 2018

When is enough… too much?

Posted on July 20, 2018

Skills Expert Mailer 3/18

Posted on July 6, 2018

Labour Law Newsflash: Fixed-term contracts are alive and well

Posted on June 29, 2018

Insights into the odiousness of OCD

Posted on June 22, 2018

What is the benefit of a learnership for your company?

Posted on May 25, 2018

Depression in the workplace – shifting perspective and changing the conversation

Posted on May 17, 2018

B-BBEE interpretations

Posted on May 14, 2018

Labour Law Newsflash 4/18: Rhetoric everywhere but what are the solutions?

Posted on May 7, 2018

Managing incapacity in the workplace is a specialist’s domain

Posted on April 19, 2018

National Minimum Wage Implementation Date Postponed

Posted on April 19, 2018

Life Is A Team Sport

Posted on April 11, 2018

Proposed amendments to the B-BBEE Codes of Good Practice

Posted on April 5, 2018

Labour Law Newsflash: 3/18

Posted on March 22, 2018

Economic Impact of Broad-Based Black Economic Empowerment or BEE

Posted on January 25, 2018

Amended Financial Services Sector and Construction Sector Codes

Posted on December 8, 2017

Get to know your Codes of Good Practice

Posted on December 1, 2017

What does the Employment Equity Act say about Disability?

Posted on November 23, 2017

Labour Law Newsflash 12

Posted on November 15, 2017

Equal Pay: Gender Pay Gaps

Posted on November 3, 2017

Labour Law Newsflash 11 of 2017

Posted on October 24, 2017

How to establish effective working relationships with SETAs

Posted on October 17, 2017

Creating a meaningful partnership with your workplace entrants

Posted on October 6, 2017

Sick notes: What does the law say?

Posted on September 22, 2017

How You Can Improve Your Leadership Brand

Posted on September 6, 2017

How Does Black Ownership Affect Preferential Procurement?

Posted on August 31, 2017

The rise of the gig worker

Posted on August 24, 2017

Equal Pay: Internal vs. External Parity

Posted on August 17, 2017

What Is Considered To Be ‘Fair’ in a Disciplinary Hearing?

Posted on August 17, 2017

Who Are Designated Groups Under the Employment Equity Act (EEA)?

Posted on August 16, 2017

What Is The B-BBEE Act?

Posted on August 15, 2017

How To Become The Manager Everyone Loves

Posted on August 14, 2017

Why we need women in the workplace

Posted on August 10, 2017

Make Sure Your Evidence Is Reliable In Your Disciplinary Enquiry

Posted on August 10, 2017

7 Steps You Need to Take Before You Institute Disciplinary Proceedings

Posted on August 8, 2017

Operational Requirements vs Incapacity: What is the difference?

Posted on August 7, 2017

BEE Verification Professional Regulator and Statement 005 on BEE Verification

Posted on August 3, 2017

What is the law about family responsibility leave?

Posted on August 3, 2017

Who are designated employers?

Posted on August 2, 2017

What all business owners need to know about non-compliance with the Employment Equity Act

Posted on August 1, 2017

The secret to the Skills Development Act

Posted on July 31, 2017

Labour Newsflash Edition 8

Posted on July 28, 2017

Who must comply with the Employment Equity Act?

Posted on July 27, 2017

Equal Pay for Work of Equal Value

Posted on July 25, 2017

Double check your employees’ qualifications

Posted on July 20, 2017

All you need to know about the UIF amendments

Posted on July 19, 2017

Reviewed B-BBEE Charter for SA’s Mining and Minerals Industry

Posted on July 14, 2017

Reviewed B-BBEE Charter for SA’s Mining and Minerals Industry

Posted on July 13, 2017

The importance of the difference between an employee and an independent contractor

Posted on July 13, 2017

The legal consequences of not respecting your fellow employees’ cultural beliefs

Posted on July 13, 2017

The importance of Collective Agreements during Strikes

Posted on July 12, 2017

Labour Newsflash Edition 7

Posted on July 6, 2017

What is the state of your organisation’s transformation?

Posted on June 30, 2017

Avoiding the Pitfalls of Equal Pay

Posted on June 22, 2017

Developments in B-BBEE

Posted on June 14, 2017

Labour Law Update 6

Posted on June 8, 2017

Emotional Intelligence

Posted on June 1, 2017

Various B-BBEE Related Matters

Posted on May 25, 2017

Labour Newsflash Edition 5

Posted on May 18, 2017

Are we getting training right?

Posted on May 11, 2017

Employment Equity Compliance: Reporting Obligations

Posted on April 14, 2017

Various Short B-BBEE Issues

Posted on March 31, 2017

The Amended Forestry Sector Code

Posted on March 31, 2017

Labour Newsflash 3

Posted on March 24, 2017

Labour Newsflash 2

Posted on February 24, 2017

Skills Development: Important Updates

Posted on February 17, 2017

National Minimum Wage Announcement

Posted on February 10, 2017

Is African Engagement Poised for Take-Off?

Posted on February 10, 2017

Procurement Regulations

Posted on January 27, 2017

Year End Message

Posted on December 15, 2016

Status of Sector Codes and B-BBEE Transactions

Posted on December 9, 2016

Employment Equity Reporting online deadline is looming

Posted on December 2, 2016

Skills Development Update

Posted on November 25, 2016

Newsflash: The National Minimum Wage

Posted on November 21, 2016

Labour Newsflash Edition 12

Posted on November 18, 2016

Determining “Value” under Equal Pay for Work of Equal Value

Posted on November 8, 2016

B-BBEE Newsflash: Empowering Supplier Status Change

Posted on November 3, 2016

The effect of the new B-BBEE Codes on the vehicle manufacturing industry

Posted on October 28, 2016

Labour Newsflash Edition 11

Posted on October 21, 2016


There are 0 comments on this post.