The Department of Employment and Labour has published the Labour Law Amendment Bill, 2025 for public comment, proposing significant updates to South Africa’s employment law framework.

The proposed amendments affect several important statutes, including the Basic Conditions of Employment Act (BCEA), the Employment Equity Act (EEA), the Unemployment Insurance Act (UIA) and the National Minimum Wage Act (NMWA).

These changes are intended to respond to developments in case law, evolving workplace practices and the growth of non-standard forms of employment. Employers should therefore begin assessing how the proposed amendments may affect their operations, policies and financial planning.

Regulation of On-Call and Flexible Working Arrangements

One of the most notable proposals is the introduction of new protections for employees working under flexible arrangements such as zero hour contracts, “as-needed” employment or on-call scheduling.

Under the proposed amendments, employers who require employees to remain available for work must clearly define certain terms in writing. These may include:

  • The maximum number of hours the employee may be required to work

  • The period during which the employee must remain available

  • Notice requirements for scheduling or cancelling shifts

If scheduled work is cancelled without adequate notice, employers may be required to compensate employees for the lost working time.

The Bill also limits the ability of employers to prevent such employees from accepting work elsewhere unless valid operational reasons exist. In addition, alternative rules regarding paid sick leave for these workers are proposed.

Implication for employers: Businesses that rely on flexible staffing models may need to revise employment contracts, scheduling practices and cost projections.

Changes to Parental Leave Provisions

The Bill proposes a comprehensive restructuring of parental leave entitlements following recent constitutional developments.

The amendments aim to create a single parental leave framework applicable to biological parents, adoptive parents and commissioning parents in surrogacy arrangements.

Key features of the proposed system include:

  • A total parental leave entitlement that may be shared between employed parents

  • Notice requirements for employees who intend to take parental leave

  • Revised provisions dealing with miscarriage, stillbirth and adoption

Corresponding amendments to the Unemployment Insurance Act propose adjustments to parental benefit payments, including shared benefit entitlements and updated qualifying criteria.

Implication for employers: Existing maternity, adoption and parental leave policies may need to be consolidated and updated. Payroll and HR systems will also need to accommodate the revised structure.

UIF Changes Linked to the New Parental Leave System

The proposed Labour Law Amendment Bill, 2025 includes amendments to the Unemployment Insurance Act (UIA) to align UIF benefits with the revised parental leave framework.

The current parental benefit provisions are set to be replaced with a single, unified benefit structure that will apply to situations involving birth, adoption and surrogacy. The amendments also allow two qualifying parents to share UIF parental benefits.

Under the proposal, benefit payments will be calculated at approximately 66% of the employee’s normal earnings, subject to statutory limits. To qualify, an employee must have completed at least 13 weeks of employment and UIF contributions before claiming.

Implications for employers: Payroll processes — including UIF reporting requirements such as the UI-19 form — may need updating. HR teams should also ensure employees receive correct information regarding parental leave benefits and eligibility.

Increased Statutory Severance Pay

The Bill proposes an increase in statutory severance pay for dismissals based on operational requirements.

The proposed change would raise the minimum severance entitlement from one week’s remuneration per completed year of service to two weeks’ remuneration per completed year of service.

This amendment is expected to increase the financial impact of retrenchments, particularly in industries experiencing economic volatility.

Implication for employers: Retrenchment planning and budgeting may require review to account for higher statutory severance obligations.

Stronger Enforcement of Benefit Fund Contributions

New enforcement provisions are proposed to address non-payment of contributions to retirement funds, medical aid schemes and similar benefit structures.

In certain circumstances, failure to pay these contributions may be treated in the same manner as non-payment of wages. Labour inspectors and dispute-resolution bodies may be empowered to take enforcement action, including orders for payment of outstanding amounts and interest.

Implication for employers: Employers should ensure strict compliance with benefit fund payment obligations to avoid enforcement action and financial penalties.

Expanded Presumption of Employment

To address concerns regarding the classification of workers as independent contractors, the Bill proposes an expanded presumption that individuals performing work may be regarded as employees unless specific criteria are met.

This measure aims to strengthen protection for workers in platform-based or dependent contracting arrangements.

Implication for employers: Businesses making use of contractors or freelance workers should review these arrangements to ensure they comply with minimum employment standards where applicable.

Greater Trade Union Participation During Workplace Inspections

The proposed amendments also introduce provisions allowing trade union representatives to accompany labour inspectors during workplace inspections.

This may result in increased scrutiny of compliance practices and more direct engagement between unions and employers during enforcement processes.

Implication for employers: Employers should ensure that employment records, policies and compliance procedures are properly maintained and accessible.

Enhanced Compliance and Dispute-Resolution Measures

The Bill seeks to strengthen the mechanisms available to enforce compliance with labour legislation. Proposed changes include broader powers for dispute-resolution bodies to confirm or amend compliance orders and to impose financial consequences for continued non-compliance.

Implication for employers: Delays in addressing compliance issues may result in faster and more costly enforcement action.

Clarification of National Minimum Wage Requirements

Amendments to the National Minimum Wage framework aim to clarify that certain forms of deferred remuneration — such as bonuses or allowances payable at a later stage — may not be counted towards compliance with minimum wage requirements.

Only direct payment for ordinary working hours would be considered when determining whether an employee is paid at or above the statutory minimum.

Implication for employers: Employers using incentive-based remuneration structures should review their pay models to ensure compliance with minimum wage legislation.

Expanded Access to Harassment Dispute Resolution

Proposed amendments to employment equity legislation may allow a wider range of workplace harassment disputes to be referred to dispute-resolution bodies if conciliation fails. This reflects an increasing focus on creating safer and more inclusive workplaces.

Implication for employers: Workplace policies on harassment and discrimination should be reviewed and strengthened where necessary.

Considerations for Smaller Businesses

Certain proposals aim to provide limited flexibility for smaller or newly established businesses, particularly regarding the application of some regulatory requirements and industry agreements.

Implication for employers: While some relief may be available, core labour standards will continue to apply to all employers.

Conclusion

The Labour Law Amendment Bill, 2025 represents a significant step in the ongoing development of South Africa’s labour law framework. If enacted, the amendments may require employers to review employment contracts, leave policies, payroll systems, compliance procedures and workforce planning strategies.

Although the Bill is still subject to public consultation and possible revision, employers are encouraged to begin assessing the potential impact on their operations and to seek professional guidance where uncertainty exists. Early preparation can help organisations adapt more effectively to any future legislative changes.

Comments can be emailed to Hlukani Mabunda at Hlukani.Mabunda@labour.gov.za or Kopano Kgatlhanye at Kopano.Kgatlhanye@labour.gov.za by no later than Saturday, 28 March 2026.

The government gazette can be viewed here.

For questions or advise, please contact the Cofesa national helpline:

(t): 011 679 4373

(c): 082 888 9516

(e): helpline@cofesa.co.za

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