South Africa's Labour Law Landscape Is About to Change — And Your Voice Matters

A landmark reform process has concluded at NEDLAC. Proposed amendments to four major pieces of labour legislation are now gazetted for public comment. Here is what you need to know — and why you need to act.

After more than two years of intensive tripartite negotiations involving Government, Organised Labour and Organised Business, the National Economic Development and Labour Council (NEDLAC) has finalised its report on the most comprehensive review of South African labour law in over a decade. Proposed amendments to the Labour Relations Act (LRA), the Basic Conditions of Employment Act (BCEA), the Employment Equity Act (EEA), and the National Minimum Wage Act (NMWA) have now been gazetted for public comment.

This is not routine legislative housekeeping. These amendments represent a fundamental reshaping of the employment law ecosystem — with far-reaching implications for how South African businesses hire, manage, discipline, retrench and compensate their workforce.

What Has Changed — And What Remains Contested

Business representatives, led by BUSA Labour Market Convenor Jonathan Goldberg, fought hard at the negotiating table and achieved some remarkable outcomes. Key wins for the employer community include:

• A new earnings threshold of R1.8 million per annum limiting reinstatement as a remedy for high-paid employees in non-automatic unfair dismissal cases — reducing lengthy and costly CCMA disputes;

• A simplified test for procedural fairness — requiring only that an employee had a fair and reasonable opportunity to respond — aligned with updated case law;

• A two-year exemption for start-up businesses with fewer than 50 employees from extended bargaining council collective agreements, providing critical breathing room for new entrants;

• Reforms to section 189A large-scale retrenchment proceedings, restoring the ability to challenge all aspects of a retrenchment dismissal after the fact — reducing procedural complexity;

• A 24-month validity cap on section 77 socio-economic protest certificates, curtailing the abuse of stale certificates;

• Expanded CCMA jurisdiction and efficiency reforms — including the ability to consolidate related claims, expand the use of inquiries by arbitrators, and carry forward unexpended budget balances.

These are meaningful achievements. They reflect sustained, strategic engagement by the business constituency and should be recognised as such.

But There Are Areas That Demand Your Attention

Not every outcome will be straightforward to manage. Several proposed amendments will require conscious and proactive risk management on the part of employers:

• Statutory severance pay is set to double — from one to two weeks per year of service for completed years after the Amendment Act commences. This has direct cost implications for workforce restructuring plans and financial modelling.

• The extended definition of "employee" — through a new Schedule 11 to the LRA — seeks to extend organisational, collective bargaining and freedom of association rights to non-standard workers and platform-based workers. The cost and operational implications of this extension are significant and not yet fully understood.

• New protections for "on call" workers under a proposed section 9B of the BCEA will impose minimum pay guarantees and advance notice obligations — directly affecting businesses that rely on flexible staffing models.

• The narrowing of the unfair labour practice definition — removing disputes about promotion, demotion, probation, training and benefits from the CCMA's jurisdiction — while welcomed by business, will require a careful review of internal escalation and grievance procedures.

• The Quantum Foods NMW amendment, which seeks to exclude contractual bonuses from minimum wage calculations, resolves a contentious LAC ruling — but requires businesses to review their remuneration structures and payroll configurations without delay.

• Proposed EEA amendments on arbitrary wage differentiation — while not yet agreed — signal a trajectory toward increased litigation risk on pay equity grounds that employers should begin stress-testing now.

This Is a Call to Action

The public comment period on these proposed amendments is a critical opportunity. Submissions made at this stage have real influence on whether amendments proceed in their current form, are modified, or are withdrawn entirely.

If you are an employer, business owner, HR professional or industry body, you have both the right and the responsibility to make your voice heard.

Consider the following steps:

• Read the proposed Amendment Bills (LRA, BCEA, EEA and NMWA Amendment Bills) and assess their specific impact on your sector and workforce model;

• Submit formal commentary through industry bodies, employer associations or directly to the Department of Employment and Labour;

• Attend briefings and webinars to ensure you fully understand what is proposed before the comment window closes;

• Begin scenario planning now — particularly around severance pay obligations, flexible staffing arrangements and employment equity compliance;

• Review contracts, policies and procedures in light of the new dismissal code, the revised ULP definition and the expanded definition of employee.

Understand the Implications — Before It's Too Late

Global Business Solutions (GBS), in partnership with Jonathan Goldberg, Labour Market Convenor for BUSA and one of the key business negotiators in the NEDLAC process, will be hosting a 2-hour webinar specifically designed to walk employers and stakeholders through these amendments — what they mean in practice, where the risks lie, and how to prepare.

This is your opportunity to hear directly from those who were in the room.

📌 Given the importance and potential compliance impact of these reforms, we are hosting two Navigating South Africa’s Landmark Labour Law Reforms Pop-Up sessions to unpack what this means in practice and what organisations should already be preparing for.

Upcoming online sessions:

3 March 2026 - https://www.globalbusiness.co.za/gbs-event-details/navigating-sas-landmark-labour-law-reforms-pop-up-03-march-2026

25 March 2026 - https://www.globalbusiness.co.za/gbs-event-details/navigating-sas-landmark-labour-law-reforms-pop-up-25-march-2026

Alternatively reach out to us at: info@globalbusiness.co.za | 043 721 1030

South Africa's labour law is evolving. The question is not whether your organisation will be affected — it is whether you will be ready.

COMPLIMENATRY COMPARISON: NEDLAC REPORT VS GOVERNMENT GAZETTE

Provisions Unchanged from NEDLAC Report to Government Gazette

Executive Summary

This document compares the NEDLAC Final Report on the Labour Law Reform Process with Government Gazette No. 54220 dated 26 February 2026. The analysis identifies provisions that were agreed upon by all social partners (Business, Labour, and Government) during NEDLAC negotiations and subsequently included unchanged in the published Labour Law Amendment Bill, 2025.

A total of 43 substantive provisions were agreed to by all parties in the NEDLAC process and incorporated into the Gazette without material changes.

Overview of the NEDLAC Process

The labour law reform process at NEDLAC ran from April 2022 until October 2024, comprising 28 task team meetings.

The process addressed amendments to:

• Labour Relations Act (LRA)

• Basic Conditions of Employment Act (BCEA)

• Employment Equity Act (EEA)

• National Minimum Wage Act (NMW)

  
  

The social partners established a Labour Law Reforms Task Team with facilitators, legal drafters, and technical support to negotiate proposed amendments.

Detailed Comparison: Unchanged Provisions

The following table sets out all provisions where consensus was reached by Business, Labour, and Government in the NEDLAC process and which appear unchanged in the published Government Gazette.

Labour Relations Act Amendments – Part 1

Topic/Section	NEDLAC Position	Status in Gazette	Key Details
Labour Court Amendments (ss 153, 156, 160, 162, 167, 169, 170, 179)	Agreed by all parties	Clauses 25–33 of LRA Bill	Institutional improvements including appointment procedures, jurisdiction clarification, cost discretion expansion
Essential Services (ss 65, 70, 71(9), 72, 74)	Agreed by all parties	Clauses 5, 7–10 of LRA Bill	Clarification of Essential Services Committee relationship to CCMA, promotion of minimum services agreements
Bargaining Councils – Secret Ballot (ss 26(15)(a), 95(9), 26(15A))	Agreed by all parties	Clauses 1–4 of LRA Bill	Secret ballot requirement for closed shop agreements; 3-year lapse provision
Bargaining Councils – Funding (s 32A(2))	Agreed by all parties	Clauses 1–4 of LRA Bill	Minister empowered to renew funding agreements for up to 36 months
Bargaining Councils – Regulations (s 99)	Agreed by all parties	Clauses 12–16 of LRA Bill	Ministerial regulations on record retention for strike and lock-out ballots
Registrar Powers – Guidelines (s 106(4))	Agreed by all parties	Clauses 12–16 of LRA Bill	Minister to publish guidelines for registrar cancellation powers after Nedlac consultation
Registrar Powers – Federations (s 107)	Agreed by all parties	Clauses 12–16 of LRA Bill	Registrar authority to regulate federations of trade unions and employers' organisations
Financial Records (ss 53, 98)	Agreed by all parties	Clauses 12–16 of LRA Bill	Alignment with Companies Act 2008 financial reporting standards
High-Paid Employees Remedies (ss 193(2A), 194(1), 194(4), 208B)	Agreed by all parties	Clauses 43, 46 of LRA Bill	High earners limited to compensation (not reinstatement) except automatically unfair dismissals; compensation caps introduced
High-Paid Threshold (s 208B)	Agreed by all parties	Clauses 43, 46 of LRA Bill	R1,800,000 per annum for May 2024–April 2025; annual CPI adjustment on 1 May
Test for Procedural Fairness (s 188(3))	Agreed by all parties	Clause 33 of LRA Bill	Fair and reasonable opportunity to respond standard; does not apply to retrenchments

Labour Relations Act Amendments – Part 2

Topic/Section	NEDLAC Position	Status in Gazette	Key Details
Inquiry by Arbitrators – Whistleblowing (s 188A(13))	Agreed by all parties	Clause 36 of LRA Bill	Clarification of payment provisions in whistleblowing inquiries
Section 189A – CCMA Rules	Agreed by all parties	Clause 37 of LRA Bill	CCMA empowered to make rules for facilitations rather than Ministerial regulations
Section 189A – Post-Facilitation	Agreed by all parties	Clause 37 of LRA Bill	Unfair dismissal disputes may proceed to Labour Court without further conciliation after facilitation
Section 189A – Procedural Fairness Challenge	Agreed by all parties	Clause 37 of LRA Bill	Restoration of pre-189A position allowing retrenchment challenges post-dismissal
CCMA – Picketing Jurisdiction	Agreed by all parties	Clauses 6, 18–22	Clarification of who may conciliate picketing disputes
CCMA – Rules & Procedures	Agreed by all parties	Clauses 6, 18–22	Expanded CCMA jurisdiction across employment laws
CCMA – Enforcement Role	Agreed by all parties	Clauses 6, 18–22	Legal status confirmed for CCMA enforcement role
CCMA – Inquiry Fees	Agreed by all parties	Clauses 6, 18–22	Regulation of fees charged in section 188A inquiries
CCMA – Expanded Mandate	Agreed by all parties	Clauses 6, 18–22	Statutory mandate expanded to include dispute prevention
Arbitration Awards as Court Orders (s 143(5))	Agreed by all parties	Clauses 38, 44, 45	Awards treated as Magistrate’s Court or Labour Court orders

BCEA, EEA and Other Amendments

Topic/Section	NEDLAC Position	Status in Gazette	Key Details
EEA – Harassment Claims	Agreed by all parties	Clauses 1–2 of EEA Bill	Low-paid employees may refer any harassment claim to CCMA
EEA – Bargaining Council Jurisdiction	Agreed by all parties	Clauses 1–2 of EEA Bill	Accredited councils may determine EEA disputes
BCEA – Severance Pay CCMA Jurisdiction	Agreed by all parties	Clause 4 of BCEA Bill	CCMA jurisdiction clarified
BCEA – Condonation Applications	Agreed by all parties	Clauses 6–10	CCMA may consider condonation for employer appeals
BCEA – Compliance Orders	Agreed by all parties	Clauses 6–10	Clarification of adjudication powers
BCEA – Consolidation of Claims	Agreed by all parties	Clauses 6–10	Arbitrator may consolidate related claims
BCEA – Fines for Non-compliance	Agreed by all parties	Clauses 6–10, 12	Clarification of fine imposition proceedings
Code of Good Practice on Dismissals	Agreed by all parties	Annexure G	Updated unified Code applying to all dismissal categories

Summary Statistics

Total agreed provisions by all parties (Business, Labour, Government): 43

• LRA amendments agreed by all parties: 32

• BCEA amendments agreed by all parties: 7

• EEA amendments agreed by all parties: 2

• Codes and Regulations agreed by all parties: 2

  
  

Key Themes of Unchanged Provisions

Institutional Efficiency and Jurisdiction

• Expanded CCMA jurisdiction across all employment laws

• Clarification of enforcement powers and procedures

• Streamlined dispute resolution processes

• Enhanced rule-making authority for dispute resolution bodies

  
  

Labour Court Reforms

All parties agreed to significant Labour Court reforms, including:

• Appointment procedures for judges

• Expanded discretion on costs

• Jurisdictional clarifications

• Confirmation as final court of appeal (subject to Constitutional Court)

  
  

Essential Services and Bargaining Councils

• Enhanced Essential Services Committee processes

• Secret ballot requirements for closed shop agreements

• Extended funding agreement periods

• Improved registrar oversight mechanisms

  
  

High-Paid Employees

Restriction to compensation (not reinstatement) except automatically unfair dismissals

Compensation caps for unfair dismissals and labour practices

Annual CPI adjustment of threshold

CCMA Operational Improvements

• Jurisdictional clarity across employment statutes

• Enhanced rule-making powers

• Expanded mandate including dispute prevention

• Consolidation of related claims

• Enforcement mechanisms and cost recovery

  
  

Conclusion

The Government Gazette No. 54220 of 26 February 2026 reflects substantial consensus achieved through the NEDLAC labour law reform process. All 43 provisions agreed upon by Business, Labour, and Government during negotiations have been incorporated unchanged into the published Labour Law Amendment Bill, 2025.

These unchanged provisions primarily address:

1. Institutional efficiency of labour market institutions

2. Jurisdictional clarity and operational improvements

3. Essential services regulation

4. Bargaining council operations

5. Dispute resolution procedures

6. Enforcement mechanisms

The high level of agreement on these technical and operational matters demonstrates the effectiveness of the NEDLAC social dialogue process in achieving consensus on labour law reform, even while other contested provisions remain subject to ongoing debate.

References

[1] National Economic Development and Labour Council. (2024). Final NEDLAC Report on the Labour Law Reform Process. NEDLAC.

[2] Department of Employment and Labour. (2026, February 26). Labour Relations Act, 2025: Labour Law Amendment Bill, 2025. Government Gazette, 54220, Notice 3801.

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