NEDLAC AMENDMENTS TO LABOUR LAW

NEDLAC has sent out a media brief announcing amendments to the Basic Conditions of Employment Act, Labour Relations Act and the Code of Good Practice for Dismissal.  They have also issued a report on recommendations for regulating remote working conditions.

In the media, announcement explains the process followed today and publishes the amendment bills for the two pieces of legislation.  The purpose of this legislation is to:

Enhancing the efficiency of the CCMA, Labour Court, and Essential Services Committee by:

• Increasing certainty on jurisdictional matters for disputes arising under different statutes;
• Limiting remedies available to high-earning employees and enabling arbitrators to conduct inquiries to expedite dispute resolution, thereby alleviating strain on the CCMA; and
• Introducing a fee for parties who unreasonably delay proceedings.
• Increasing severance pay provisions from one to two weeks per year of service;
• Strengthening protections for workers in non-standard employment arrangements, including sectoral determinations and the provision of organisational and bargaining rights;
• Updating retrenchment provisions to align with Labour Court rulings;
• Revising the scope of unfair labour practice disputes to exclude matters such as promotions;
• Restricting the validity of a certificate to protect socio-economic protest action to 24 months from the date of issue;
• Enhancing protections for on-call workers;
• • Strengthening the BCEA to address the non-payment of pension and provident fund contributions by employers and
• Temporarily reducing worker protections for start-ups that fall under the jurisdiction of bargaining councils. The social partners’ mandates are documented in a Nedlac Report.

A review of the proposed changes indicates an attempt to make business easier for small businesses by allowing for an easier dismissal process during probation and to remove certain unfair labour disputes from section 188, particularly those relating to promotion and training.

The introduction of a recognition of “on-call” workers is very interesting and will assist farmers who employ seasonal workers as well as industries who make use of casual labour.

It will be some time before this legislation is promulgated.  However, they do not change any of the basic conditions of employment.

MINIMUM WAGE REGULATIONS 2025

On 4 February 2025, the Minister of Labour and Employment passed new regulations increasing the minimum wage with effect from 1 March 2025.  This regulation governs the minimum wages for:

• All employees who do not fall into specific categories listed below (including casual employees)
• Farm Workers
• Domestic Workers
• Workers employed in Public Works Schemes (cleaning verges Parks, Cemeteries etc.)
• Learners

The Regulations also provide new minimum wages for

• Contract Cleaners
• Employees in the Wholesale and Retail Industries.

The increase in the minimum wage is 9.6% and both the Contract Cleaning and Wholesale and Retail Industries minimum wages have also increased wages by this percentage.  However, there have been substantial increases at the other levels.  See table below:

MINIMUM WAGES 2025

This increase was less than anticipated.  CPI in January was recorded as being 3.2% and it was recommended that the increase should have been 1.5% above this but is only 1.2%.  

It is to be noted that there is no requirement to implement an increase if the employee is already earning more than the minimum salary.