South Africa celebrated Workers' Day last week to acknowledge the invaluable contributions of the South African workforce. The day was also an opportunity for employers to reflect on the evolving legal landscape shaping employment in the country. There have been notable updates in South African employment law, with these significant regulatory shifts likely to impact employees, employers and the broader economy.
Employment Equity Amendment Act, 2022 (EEAA)
The EEAA officially came into effect on 1 January 2025, ushering in sweeping changes, including:
- Deletion of part of the definition of a ‘designated employer’: An employer (other than a municipality, organ of state or an employer appointed as a designated employer in terms of a collective agreement) will now only be considered a ‘designated employer’ (and be required to comply with the affirmative action provisions of the Employment Equity Act, 1998) if it employs 50 or more employees. There is no longer be any consideration given to an employer’s total annual turnover. This will provide welcome relief for smaller businesses.
- Sectoral targets: The amendments introduce the ability of the Minister of Employment and Labour (Minister) to identify national economic sectors and set numerical targets for the employment of persons from designated groups in each occupational level in any such sectors (or sub-sectors). Designated employers must align their employment equity plans with these targets or justify any non-compliance.
- State-linked business requirements: Businesses aiming to contract with the State must now demonstrate compliance with their employment equity obligations and payment of the national minimum wage. Whilst this section was introduced some time ago, it has finally come into operation, with a few tweaks. Employers who make an offer to conclude an agreement with any organ of state for the furnishing of supplies or services, or for the letting or hiring of anything, must now attach to that offer either a certificate of compliance (obtained from the Minister), or a declaration of compliance (which should be verified by the Director-General).
Kerry Fredericks 3 Dec 2024
Regulatory framework: On 15 April 2025, the Minister published the ‘Determination of Sectoral Numerical Targets’ (Final Sector Target Regulations) and the ‘Employment Equity Regulations, 2025’ (General Administrative EE Regulations), which repeal the Employment Equity Regulations, 2014 (collectively, the 2025 EEA Regulations). The 2025 EEA Regulations are published, following the EEAA coming into effect, and the purported consultations that took place between the Department of Employment and Labour (DoEL) and representatives of various sectors.
In the Final Sector Target Regulations, the Minister identified 18 national economic sectors and set numerical targets for each sector. The ultimate purpose of these sector targets is to ensure the equitable representation of suitably qualified people from designated groups. The enforcement of these sector targets will have significant impact on designated employers and their ability to do business with the state. Further, fines and penalties may apply for non-compliance with sector targets unless a justifiable reason exists for such non-compliance.
Nedlac Report on the Labour Law Reform Process
Following negotiations on substantive labour law reforms between organised business, organised labour and Government at the National Economic Development and Labour Council (Nedlac), which commenced in April 2022, the Nedlac Report has finally been published.
The report, which documents the proposals made and the outcome of the discussions among the parties, has been submitted to the Minister of Employment and Labour, along with four proposed amendment bills. These bills propose 47 amendments to the Labour Relations Act, 1995, 13 amendments to the Basic Conditions of Employment Act, 1997, two amendments to the National Minimum Wage Act, 2018 and three amendments to the Employment Equity Act, 1998.
The reforms to the various laws still have some way to travel before they become law. The draft amendment bills will now make their way through the Parliamentary process after they are vetted by the State Law Advisor and, given that many of the final proposed amendments did not receive support from all three social partners, further debate and possible changes are anticipated.
Immigration Regulations reform
South Africa’s immigration framework is also undergoing major transformations under the third amendment of the Immigration Regulations, 2014, introduced by Home Affairs Minister Leon Schreiber:
- Points-based visa system: A new points-based system has been launched for general work and critical skills visa aimed at streamlining the hiring of skilled workers.
- Remote working visas: For the first time, remote working visas are available, providing opportunities to attract digital nomads and bolster tourism.
- Simplifications and waivers: The reforms include waivers for certain visa application requirements, reducing administrative burdens for employers and foreign nationals alike. These changes are expected to enhance South Africa’s competitiveness as a destination for skilled labour, foreign investment, and remote work.
Evolution of labour litigation
In an effort to keep up with technological advancements, foster access to justice and address the issue of misplaced physical files, all seats of the Labour Court have come ‘online’ to Court Online, South Africa’s efiling and case management system.
Following a trial period which commenced last year, with effect from 14 April 2025, all new matters in the Labour Court and Labour Appeal Court must be initiated and filed on Court Online.
Keshni Naicker and Amandla Makhongwana 30 Jan 2025
Dismissals
In the first among a reported ‘wave’ of anticipated labour law amendments this year, the Department of Employment and Labour published a new Draft Code of Good Practice on Dismissal in January 2025.
The Draft Code is set to replace the now well-known Schedule 8 to the Labour Relations Act, 1995 and introduces revised guidelines for misconduct inquiries, with an emphasis on fostering dialogue and decriminalising disciplinary processes, more relaxed performance management processes, recognising other forms of ‘incapacity’, and incorporating guidance on retrenchments, among other things. The period for public comment closed on 22 March 2025 and we anticipate the final version to be published soon.
Final note
These developments highlight a pivotal moment for South Africa’s employment and immigration landscape, with significant implications for compliance, workforce planning and international competitiveness.
