South African labour legislation is on the verge of one of the most significant transformations in decades. Employers who fail to prepare for these proposed changes could face increased compliance obligations, substantial financial penalties and greater legal risk.
On 26 February 2026, the Minister of Employment and Labour published several draft Bills that propose extensive amendments to the country’s labour legislation. These include the Draft Employment Laws Amendment Bill (the “ELA Bill”), the Draft Labour Relations Amendment Bill (the “LRA Bill”) and the Employment Services Amendment Bill.
Collectively, these proposed laws could fundamentally change how employers recruit staff, manage employment relationships, conduct retrenchments and employ foreign nationals.
Although these Bills have not yet become law, prudent employers should start reviewing their employment practices now.
1. Stricter Rules for Employing Foreign Nationals
One of the most significant proposals is contained in the Employment Services Amendment Bill, which introduces far stricter requirements for employers wishing to employ foreign nationals.
If the proposed legislation is enacted, employers will be required to:
- Verify that every foreign employee has the necessary visa or work authorisation.
- Demonstrate that no suitably qualified South African citizen is available for the position before appointing a foreign national.
- Develop and implement a formal skills transfer plan unless specifically exempted by the Minister.
- Ensure foreign employees receive employment terms and conditions that are no less favourable than those offered to South African employees performing similar work.
- Maintain detailed records proving compliance with these obligations.
Severe Penalties for Non-Compliance
The proposed penalties are substantial.
Employers who fail to comply may face:
- First offence: Fine of up to R100,000
- Second offence within three years: Fine of up to R200,000
- Third offence: The greater of R1 million or 10% of the employer’s annual turnover
For businesses that regularly recruit scarce international skills, these proposed requirements make compliance more important than ever.
2. Major Changes to Parental Leave
The draft legislation also proposes a significant overhaul of South Africa’s parental leave provisions.
Under the proposed framework:
- A single parent, or the only employed parent in a household, may become entitled to at least four consecutive months’ parental leave.
- Where both parents are employed, they would share a combined entitlement of four months and ten days, allowing them flexibility to divide, stagger or even take portions of the leave simultaneously, provided neither parent exceeds four months individually.
Adoption Leave Expanded
The proposals also extend adoption leave.
Instead of only applying where a child is under two years old, adoption leave would apply to children up to six years of age.
The same age limit would also apply to children placed through qualifying surrogacy arrangements.
These proposed amendments reflect a greater emphasis on supporting modern family structures and parental responsibilities.
3. Retrenchments Could Become More Costly
Employers contemplating restructuring or operational retrenchments should pay close attention to the proposed increase in statutory severance pay.
Currently, employees are entitled to a minimum of:
- One week’s remuneration for every completed year of service.
The Draft Employment Laws Amendment Bill proposes increasing this to:
- Two weeks’ remuneration for every completed year of service.
For businesses facing financial pressure or considering restructuring, this change could significantly increase retrenchment costs and should be factored into future workforce planning.
4. Greater Protection for Employees on Flexible Contracts (“Gig”workers)
The proposed legislation also seeks to regulate flexible working arrangements more closely.
Many employers currently utilise:
- Zero-hour contracts
- On-call employees
- Casual labour
- “Work as required” arrangements
If adopted, employers would be required to clearly record in writing:
- Guaranteed working hours.
- Periods during which employees must remain available.
- Notice periods for both scheduling and cancelling shifts.
Importantly, where an employer cancels work without giving sufficient notice, employees may still be entitled to payment for those cancelled hours.
The proposals also seek to prevent employers from unreasonably restricting employees from accepting additional work elsewhere, unless there is a legitimate business justification, such as protecting confidential information or avoiding conflicts of interest.
For businesses relying heavily on flexible staffing arrangements, employment contracts and workplace policies may require significant revision.
What Should Employers Be Doing Now?
Although these Bills are still in draft form, employers should not wait until the legislation is enacted before preparing.
COFESA recommends that employers begin by:
- Reviewing employment contracts and workplace policies.
- Assessing parental leave policies against the proposed amendments.
- Evaluating retrenchment procedures and calculating the financial impact of increased severance pay.
- Auditing all foreign national employees to ensure supporting documentation is complete.
- Preparing skills transfer plans where foreign nationals are employed.
- Reviewing casual, temporary and on-call employment arrangements to ensure future compliance.
Taking proactive steps now can significantly reduce future compliance risks and prevent costly disputes once the legislation comes into effect.
COFESA Can Help Your Business Stay Compliant
Labour legislation continues to evolve, and employers who remain informed are far better positioned to avoid unnecessary legal disputes and financial penalties.
At COFESA Labour Law Specialists, we continuously monitor proposed legislative developments and assist employers in updating contracts, workplace policies and employment practices to remain legally compliant.
If your business would like assistance reviewing its employment documentation or preparing for these proposed legislative changes, contact COFESA today. Our experienced labour law specialists are ready to help protect your business before these amendments become law.
For questions or advise, please contact the Cofesa national helpline:
011 679 4373 | 082 888 9516 | helpline@cofesa.co.za
Disclaimer: The information and material published on this website is provided for general purposes only and does not constitute legal advice. We make every effort to ensure that the content is updated regularly and to offer the most current and accurate information. Readers are advised to always consult with a Labour Law Practitioner before acting on the information. We accept no responsibility for any loss or damage, whether direct or consequential, which may arise from reliance on the information contained in these pages.