Staying Compliant: Key South African Labour Law Updates You Need to Know (Early 2025)

South Africa’s labour landscape is constantly evolving. For employers, HR professionals, and even employees, staying abreast of the latest legislative changes and significant court rulings isn’t just good practice – it’s essential for ensuring compliance, fairness, and smooth operations.

Over the past year or so, several important developments have taken place. Let’s break down some key updates you should be aware of as of early 2025:

1. National Minimum Wage Increases

Keeping pace with the cost of living is a crucial aspect of labour policy. As such, the National Minimum Wage (NMW) has seen scheduled increases:

• March 1, 2024: The NMW saw an increase.
• March 1, 2025: Another increase took effect more recently.

Remember that specific sectors might also have their own adjusted minimum wages, so it’s vital to check the requirements applicable to your particular industry. These adjustments impact budgeting, payroll, and overall compensation strategies.

2. New Earnings Threshold

The “earnings threshold,” determined annually by the Minister of Employment and Labour, plays a significant role in determining which labour law protections apply to employees. Those earning above this threshold are generally excluded from certain provisions of the Basic Conditions of Employment Act (BCEA), such as those relating to working hours, overtime pay, and compressed workweeks.

• April 1, 2024: A new earnings threshold came into effect.

Employers need to be aware of this threshold to correctly classify employees and understand their respective rights and protections under the law. Misclassification can lead to non-compliance issues.

3. Employment Equity Act (EEA) Amendments Delayed

There was considerable anticipation around amendments to the Employment Equity Act. A key expected change involved potentially exempting companies with fewer than 50 employees from certain affirmative action compliance requirements (like submitting EE reports and meeting specific targets). These changes were initially expected around September 2023.

• Current Status: The implementation of these much-discussed amendments has been delayed.

This means that, for now, the existing EEA compliance obligations remain in place for designated employers based on the current criteria (size or turnover). Businesses should continue operating under the existing framework until official confirmation and details of the amendments’ implementation are announced.

4. Parental Leave Provisions Questioned

A landmark judgment by the Gauteng High Court in late 2023 shook up the conversation around parental leave. The court found that the existing provisions (within the BCEA) are unconstitutional.

• The Issue: The court ruled that the current system unfairly discriminates between different categories of parents regarding the leave they are entitled to upon the birth or adoption of a child.

This ruling signals a potential shift towards more equitable parental leave for all parents, regardless of gender or role (e.g., mother, father, adoptive parent). While this judgment is significant, it creates a period of uncertainty. Employers should monitor developments closely as Parliament may need to amend the legislation. Seeking legal advice on handling parental leave requests in light of this ruling is advisable.

Staying Informed

Navigating these updates requires diligence. It’s crucial for businesses to:

• Review and update internal policies and employment contracts.
• Ensure payroll systems reflect the correct minimum wage and account for the earnings threshold.
• Stay informed about the final implementation details of the EEA amendments.
• Monitor legal developments regarding parental leave.

Keeping up-to-date with labour law isn’t just about avoiding penalties; it’s about fostering a fair, transparent, and legally sound working environment. When in doubt, consulting with a labour law specialist is always the best course of action.