The LRA Is Changing: What Employers Need to Know About the Proposed Amendments – Part 1

South Africa’s employment landscape is bracing for a wave of legislative change — and if you’re an employer, it’s time to pay close attention.

In April 2025, the Department of Employment and Labour released a comprehensive set of proposed amendments to the Labour Relations Act (LRA), the Basic Conditions of Employment Act (BCEA), and related labour laws. This followed years of negotiation between government, organised labour, and business through NEDLAC, resulting in four amendment bills currently heading toward the legislative process.

In this blog, we unpack Part I of the proposed changes, focusing on the LRA, to help employers understand how their workplace obligations and rights could shift — and what to start preparing for now.

A New Landscape for Dismissals   

One of the most significant proposals is aimed at high-earning employees. If passed, employees earning above R1.8 million per year will no longer be entitled to reinstatement for standard unfair dismissals. In these cases, only capped compensation will be available. Reinstatement would still apply in cases of automatically unfair dismissals, such as those related to discrimination or whistleblowing.

Probation periods are also in the spotlight. The proposed amendments seek to limit protection against unfair dismissal during the first three months of employment — or longer, if a reasonable and operationally justified probation period is included in the contract. This change aims to encourage hiring by reducing the perceived risk of taking on new or inexperienced workers.

Rethinking Retrenchments and Bargaining Councils   

If your business has ever faced a large-scale retrenchment, you’ll know how legally complex the process can be. The proposed changes would shift more power to the CCMA, allowing procedural fairness issues to be challenged after dismissals take place, rather than only beforehand. This change reverses the current legal position under section 189A and could have implications for how and when businesses conduct consultations.

There’s also good news for startups and smaller businesses. If your company is under two years old and has fewer than 50 employees, it could become exempt from certain Bargaining Council agreements — unless your business was formed through a merger or transfer. This could reduce regulatory burdens for emerging enterprises, giving them room to grow before taking on industry-level obligations.

Union Oversight and Closed Shop Agreements   

Trade unions and employer organisations will face tighter financial controls, with requirements to comply with the Companies Act and prepare annual financial statements. Additionally, the continuation of closed shop agreements will now need to be put to a secret ballot every three years. These changes seek to introduce more accountability and transparency within organised labour.

The proposed amendments also refine how we define unfair labour practices. Common disputes about promotions, training, probation, and benefits may no longer fall under this category — meaning internal grievance procedures will take on a more central role. Employers will need clear, well-documented policies and HR processes to resolve these disputes effectively in-house.

What Employers Should Be Doing Now   

Although these amendments are not yet law, they’re moving through the pipeline — and the implications are serious. The legislative process is expected to include public participation, but the direction is clear: greater regulation, clearer definitions, and increased accountability for both employers and labour organisations.

If your contracts, disciplinary procedures, or union engagement policies aren’t up to date, now is the time to act. Businesses that proactively align with these expected changes will be better protected, legally compliant, and less likely to face disruptive disputes.

At Chamlabour, we’re already guiding employers through the impact of these amendments — helping them revise policies, prepare for new dismissal rules, and ensure workplace practices stay ahead of the law.

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