BusinessLive reports that a new report published on Thursday by the University of Cape Town’s (UCT’s) labour and enterprise policy research group argues that new legislation will have to be drafted to ensure that the national minimum wage (NMW) is effectively implemented.

The NMW will be implemented from May 2018 and it has been under discussion at the National Economic Development and Labour Council (Nedlac) for the past 18 months under the guidance of Deputy President Cyril Ramaphosa.  The UCT report explored three options for introducing the NMW into the existing legislative framework.  Sectoral determinations and the Basic Conditions of Employment Act (BCEA) currently govern working conditions and the regulation of wages.  The researchers examined a dedicated statute for the NMW.  The BCEA “would continue to provide a floor for all other employment conditions and mechanisms for enforcement”, they said.  But a new wage commission would have to be established to deal with the setting of wages and conditions of employment in all sectors and to review the NMW.