The Minister of Employment and Labour has published the Employment Laws Amendment Bill for pre-parliamentary consultation. Once enacted, this will be the most significant overhaul of South Africa’s core employment legislation since 2018. Every employer in South Africa is affected.
Severance pay doubled
From one week to two weeks’ remuneration per completed year of continuous service (s 41 BCEA amendment). Any pending or planned retrenchment programme requires immediate cost remodelling.
Gig worker reclassification — new s 50A
A rebuttable presumption of employee status applies for benefit fund purposes to all workers performing services, unless the employer proves: no control or direction; not integrated into the business; not serving the employer’s customers under employer-set terms.
On-call & zero-hours workers — new s 9B
Employers must specify availability terms in writing and pay employees for cancelled shifts if proper notice is not given.
Parental leave restructured
Single parents and sole employed parents: 4 consecutive months. Two employed parents: 4 months and 10 days shared in any agreed combination.
Annual determination of motor vehicle allowance rates for years of assessment commencing 1 March 2026. Payroll systems must be updated immediately. Routine notice, but actionable now.
Simplified rate: 495 c/km