Black Economic Empowerment (BEE) remains central to South Africa’s transformation agenda, but is it empowering the many or enriching a connected few? This article unpacks how BEE has shifted ownership and opportunity, where it has fallen short, and why businesses must move beyond scorecard compliance. It explores practical ways to drive broad-based, grassroots empowerment through black SMEs, skills development, inclusive procurement, and true economic participation.

The Constitutional Court’s Van Wyk judgment clarifies who qualifies for parental leave under the BCEA: only those who assume full parental rights under the Children’s Act. Foster parents, recognised as temporary caregivers without guardianship, do not meet this threshold. Likewise, surrogate mothers hold no parental rights in valid surrogacy agreements—parental status vests in the commissioning parents at birth. While the law is clear, the ruling raises important policy quest

The Labour Appeal Court has upheld Eskom’s “pipeline” shortlisting policy as lawful under the Employment Equity Act. The Court found that prioritising designated groups for senior roles to advance transformation does not constitute unfair discrimination, provided it’s rational, flexible, and not an absolute barrier. This ruling clarifies that preferential recruitment may form part of legitimate employment equity strategies aligned with constitutional principles.

A strong B-BBEE strategy is now essential for competitiveness. With evolving Sector Codes and tighter verification scrutiny, organisations must align Skills Development, Procurement and ESD practices to unlock real scorecard value. Effective tracking of black-owned suppliers, verification-ready evidence, and linking bursaries, learnerships and absorption to measurable points can prevent audit losses and improve transformation impact ahead of 2025.

Job hugging—the tendency for employees to cling to their jobs despite dissatisfaction—is rising in South Africa amid economic uncertainty and limited job mobility. High unemployment and fears of retrenchment drive this behaviour, reducing innovation and engagement. Employers can counteract job hugging by promoting growth, transparent communication, and career development to restore trust and productivity while building a resilient workforce.

The Constitutional Court’s Van Wyk judgment reshapes South Africa’s parental-leave framework under the BCEA and UIA, requiring equal treatment for all parents and prompting major compliance, cost, and policy challenges. Employers must now reassess paid-leave benefits, align with interim provisions effective 3 October 2025, and balance equity with sustainability through lawful consultation, capped-benefit models, and strategic HR planning.

The Labour Court in Ndzeru v Transnet National Ports Authority [2023] ZALCCT 11 upheld the dismissal of an employee jailed for attempted hijacking. Absent for over seven weeks, the worker was dismissed for incapacity after bail was twice denied. The Court ruled the process fair, noting union representation and no duty for a post-dismissal hearing in incarceration cases. The judgment affirms operational fairness and employer rights where absence stems from imprisonment.

AI is transforming Preferential Procurement from a compliance task into a strategic advantage. By automating supplier verification, classifying spend, and predicting procurement gaps, AI enables transparent, audit-ready reporting and proactive supplier development. Beyond boosting B-BBEE scores, it drives inclusive growth—helping South African organisations build smarter, fairer, and more resilient supply chains powered by real-time intelligence.

Poor employee offboarding exposes South African companies to POPIA breaches, IP theft, and reputational harm. A structured exit framework protects data, enforces legal obligations, and preserves institutional knowledge. From asset recovery and access control to confidentiality reminders and exit interviews, strategic offboarding is a compliance safeguard and culture-building tool that turns risk into operational resilience.

The Labour Appeal Court in IMATU obo Spangenberg v Overberg District Municipality [2024] ZALAC 56 reaffirmed that employers cannot unilaterally alter agreed job descriptions or bypass approved job evaluation systems. The LAC reinstated the arbitration award, finding the Labour Court exceeded its powers by directing the PAC to act outside its mandate. The ruling underscores the sanctity of job evaluation processes and the limits of managerial discretion in labour relations.

South Africa’s Home Affairs has extended Lesotho and Zimbabwe Exemption Permits (LEPs and ZEPs) to 28 May 2027, offering temporary relief but prolonging uncertainty. Employers must still verify all foreign nationals’ work status, maintain proper documentation, and prepare for compliance inspections. The latest extensions highlight the need for proactive immigration due diligence and long-term workforce planning amid ongoing policy indecision.

AI is transforming how South African organisations measure B-BBEE SED. Beyond spreadsheets, it enables automated beneficiary checks, impact scoring, NLP insights, forecasting, and real-time dashboards. The result is credible, audit-ready reporting that proves meaningful spend and guides higher-impact projects. AI turns SED from a tick-box task into a data-driven, strategic pillar that amplifies human outcomes and measurable, sustainable change.

The Labour Appeal Court in Potgieter v Samancor Chrome Ltd [2025] ZALAC 15 confirmed that an arrear wages claim only prescribes once reinstatement occurs, not when reinstatement is ordered. Since the employee’s claim was filed within three years of actual reinstatement, the Court found prescription properly interrupted. The ruling clarifies that reinstatement revives employment first before wages become claimable, protecting employees’ right to arrear pay recovery.

South Africa’s 2025 labour law landscape brings faster legal changes and stricter compliance demands. From new case law on dismissal and strikes to evolving Employment Equity reporting, pay transparency, and policy implementation standards, employers face higher stakes than ever. The Annual Labour Law Update 2025 helps HR, IR, and executives navigate these shifts with practical toolkits, curated case digests, and nationwide sessions to future-proof workplace policies and redu

The Constitutional Court’s landmark ruling in Van Wyk and Others v Minister of Employment and Labour transforms parental leave in South Africa. Declaring sections of the BCEA and UIF Act unconstitutional for discriminating against fathers, adoptive, and commissioning parents, the Court ordered immediate interim relief: any two parents can now share four months’ leave. Employers must urgently update policies, payroll, and contracts to ensure compliance and avoid unfair discrim

LAC upholds 2015 restraint of trade: Jones v Compendium confirms enforceability where no clear novation exists, safeguarding employer interests.

Build a compliant, future-ready resourcing policy in SA—align EE, POPIA, fair pay, and recruitment best practices to support business and transformation.

A significant ruling, delivered on 29 August 2024, in the matter of UMICORE CATALYST SOUTH AFRICA (PTY) LTD V NUMSA AND OTHERS (PA3/23)...

Workplace romances aren’t banned in SA law, but fair policies on disclosure, conflicts, and conduct are vital for trust and compliance.

Master EE compliance: submit accurate EEA2 & EEA4 reports by 15 Jan 2026. Avoid penalties—join our accredited training on 7 Oct 2025.