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2025 labour law changes a positive step toward an inclusive employment landscape

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2025 labour law changes a positive step toward an inclusive employment landscape

Phetheni Nkuna, Director in the Employment Law practice recently joined Jeremy Maggs on Hot 1027 to discuss some of the recent formative labour law changes that mark a positive step toward an inclusive employment landscape.

13 Mar 2025 09:09 Minutes Podcast
2025 labour law changes a positive step toward an inclusive employment landscape

2025 labour law changes a positive step toward an inclusive employment landscape

Podcast

2025 labour law changes a positive step toward an inclusive employment landscape

Podcast

00:00 00:00
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These include the draft Code of Good Practice: Dismissal that was published for public comment on 22 January 2025. Whilst these reforms promise to be a progressive step in the right direction, effective implementation will be the decider.

Phetheni highlights multiple factors contributing to unemployment, including historical inequality, corruption, poor infrastructure, and loadshedding. Both the formal and informal sectors also play a role, making it difficult to pinpoint a single cause.

Phetheni also notes that the President has acknowledged concerns about rigid employment laws that limit flexibility, especially for smaller businesses. Addressing these issues is a positive step. A key recent amendment is the minimum wage increase from R27.58 to R28.79 per hour (effective 1 March), a 4.3% rise. This applies to farmworkers, domestic workers, and others, with additional provisions for learnership agreements, contract cleaning, and the wholesale/retail sector. Whilst some critics argue that minimum wage hikes incumber small businesses, the Act allows for exemptions. Employers unable to afford the new wage can apply for exemption but cannot unilaterally or even contractually waive the obligation to pay the prescribed minimum wage.

Click here to listen to the full interview.

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