Major law changes set to impact South African working hours
The proposed labour law reforms could especially have a significant influence on independent contractors.
According to BusinessTech, the Minister of Employment and Labour Nomakhosazana Meth has published new Bills for public comment.
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Cabinet approved the publication of the Labour Laws Amendment Bill, 2025 and the Labour Relations Amendment Bill, 2025.
These Bills will also introduce changes to the Basic Conditions of Employment Act, 1997 (BCEA), the Employment Equity Act, 1998 (EEA) and the National Minimum Wage Act, 2018 (NMWA).
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While the proposals are not yet law, public submissions are being accepted until the end of March.
The main purpose of these proposed reforms is to strengthen the presumption of employment, thereby extending labour protections to workers whose roles are effectively controlled by a company or digital platform.
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A major change that could come of this is for independent contractors across South Africa.
Independent contractors include delivery drivers, ride-hailing operators and courier workers, who could soon be legally recognised as employees.
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The draft amendments shift focus away from job titles or contractual labels and instead examine the reality of a working relationship.
Individuals who are integrated into a business or depend on a company as their primary source of income may be classified as employees, regardless of whether they are labelled as independent contractors.
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Although the Bills do not introduce a formal legal definition of a gig worker, they redraw the boundaries around who qualifies as an employee, and if reclassified, these workers would fall fully under labour legislation protections.
This change could affect app-based drivers, food delivery riders, freelance platform workers, hospitality shift staff and certain freelancers in the film and television industry.
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What new rights and protections will workers receive?
Workers classified as employees would gain access to rights traditionally reserved for permanent staff.
These include:
- the ability to join trade unions
- participate in collective bargaining
- participate in protected strike action
Employers would also be required to provide written contracts to shift-based and on-call workers.
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These contracts must specify:
- Guaranteed working hours
- Maximum hours and notice periods
- Workers will be entitled to payment for a cancelled shift without sufficient notice
For many workers previously treated as flexible labour, the changes represent a substantial shift in workplace security and accountability.
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What about employers?
It's self-explanatory that these reforms will affect businesses and employers.
- Severance pay during retrenchments would increase from one week’s remuneration per completed year of service to two weeks.
- Employees may be dismissed without a formal hearing during the first three months of employment or during probation, whichever is shorter.
- Disciplinary processes would align with the revised 2025 Code of Good Practice on Dismissal, simplifying procedures in cases involving incapacity or misconduct.
- Compensation for unfair dismissal claims by high earners would be capped at R1.8 million.
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Small businesses
Newly established small businesses would receive temporary relief from bargaining council agreements during their first two years of operation.
The exemption is intended to reduce regulatory pressure on start-ups while they establish themselves.
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With public consultations underway, the final shape of the legislation will depend on stakeholder input before any changes are enacted into law.
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