Major retrenchment changes on the cards for South Africa

A “new wave” of labour law amendments is in the pipeline for South Africa, with major changes to dismissals and retrenchment.

Labour inspectors have been advised to prepare themselves for its implementation.

Acting Deputy Director-General: Labour Policy & Industrial Relations Thembinkosi Mkalipi said a Nedlac Report, which will explain the changes and set out the agreements and disagreements between the social partners, will be given to the Minister Nomakhosazana Meth by the end of October 2024.

After the Nedlac process, the Minister will then be requested to table the Bill before the Cabinet to approve it for public comments.

“After public comments, the Minister will be requested again to table the Bill before the Cabinet for Parliamentary processes,” said Mkalipi.

He added that the latest labour law reform was initiated in 2021 following a proposal from Nedlac social partners.

He added that the latest amendments are intended to ensure that labour laws are relevant and responsive to the changes and challenges in the current labour market, such as unemployment, growing small businesses and how employers can create employment without compromising job security.

The labour law proposals will focus on the following:

• Dismissal and retrenchment procedures;
• Improved efficiency of the Labour Court;
• Simplification of procedural fairness;
• Limit on compensation for procedurally unfair dismissals;
• Excluding high-paid employees from specific statutory protection;
• Inquiry by Arbitrator;
• Redefining unfair labour practice,
• Improved efficiency of bargaining councils;
• Alignment of council/ agency jurisdiction;
• Introducing a broader definition of employees;
• Alignment of CCMA jurisdiction;
• Limitation of liability;
• Harmonisation of LRA and EEA dispute resolution;
• Clarification and expansion of CCMA jurisdiction for severance pay claims;
• Introduction of protection for workers who are required to be available for work but are not
• Guaranteed work by their employers;
• Severance pay;
• Exclusion from collective agreements;
• Qualifying period for new entrants into the labour market.

Although there have been adendments to some pieces of labour legislaton over the last few years, like unemployment insurance and compensation for occupational injuries and diseases a large labour amendment was last seen in 2009/10, and the changes came into implementation in 2013.”

“The key focus of 2013 reforms was to respond to increased informalisation to ensure that vulnerable categories of workers receive adequate protection and are employed in conditions of decent work,” said the Department of Labour.

“(It also aimed to) enhance the effectiveness of the primary labour markets institutions, strengthen the implementation of Employment Equity and enhance equal treatment in the workplace; and re-position the public employment services.”

New law for companies

The new legislation follow other labour legislation that has been signed into law.

President Cyril Ramaphosa signed the Employment Equity Amendment Act into law last April.

The amendments empowered the Minister of Labour to identify and set employment equity numerical targets for each national economic sector.

Recent draft regulations have also been designed by employers and look at how they should develop their Employment Equity Plans (EE Plans).

The regulations states that the National EAP will apply to designated employers that conduct their business or operations nationally, while the Provincial EAP will apply where the business or operations are conducted in a particular province.