What the New Labour Law Proposals Mean for Employers – Part II: BCEA, NMWA & Employment Equity
In our previous blog, we unpacked the major proposed changes to the Labour Relations Act (LRA), including new rules around dismissals, retrenchments, and trade union oversight. Now, in Part II, we shift the spotlight to the Basic Conditions of Employment Act (BCEA), National Minimum Wage Act (NMWA), and the Employment Equity Act (EEA) — where big shifts are also on the cards.
While these changes are still in draft form, employers shouldn’t wait. Understanding them now can help you stay ahead, avoid costly non-compliance, and be ready to adapt when the law changes.
Fairer Wages and Stricter Standards: BCEA Changes
One of the biggest proposed shifts under the BCEA is an increase in severance pay — from one week’s remuneration per year of service to two weeks. This adjustment alone could significantly impact payroll planning, especially for employers considering restructuring.
The new proposals also tighten up how employers must manage benefit fund contributions. Late or non-payment could now trigger financial penalties. Labour inspectors will be given more authority to enforce basic standards like working hours, leave entitlements, and fair treatment — making compliance not only more important, but more visible.
Essentially, these changes are about creating consistency across sectors. If passed, they’ll bring the BCEA into closer alignment with sectoral determinations, ensuring that all workers receive fair and predictable treatment — regardless of their industry.
National Minimum Wage: No More Bonus Loopholes
The amendments to the National Minimum Wage Act (NMWA) are all about clarity and fairness. Under the proposed changes, contractual bonuses or deferred payments can no longer be counted toward meeting the minimum wage.
In other words, the R28.90/hour (as of 2024) minimum wage must be met through standard hourly pay — not through performance bonuses or once-off incentives. Employers who have relied on these additional payments to boost earnings above the minimum threshold will need to adjust their pay structures accordingly.
This change strengthens the principle of a guaranteed, reliable income for all workers, particularly in lower-paid positions.
A More Accessible Equity Process
There are also meaningful updates proposed under the Employment Equity Act. These changes aim to make the system more accessible for employees while also clarifying employers’ responsibilities.
For instance, employees who face unfair discrimination due to harassment — regardless of their salary — will now be able to approach the CCMA directly for arbitration, rather than the Labour Court. This simplifies the resolution process and can reduce legal costs for both parties.
If the employee earns below the BCEA earnings threshold, they’ll also have access to arbitration for other forms of unfair discrimination, such as race or gender-based claims.
In addition, if a collective agreement binds the parties — or if a bargaining council has the necessary accreditation — disputes under the EEA may now be referred to the bargaining council. This offers a more streamlined route for dispute resolution in many cases.
What Employers Should Do Now
These proposals reflect a growing push toward more transparent, consistent, and employee-friendly labour law enforcement in South Africa. While not yet law, the direction is clear — and businesses that prepare early will benefit.
That means reviewing your employment contracts, HR policies, and payroll systems now to identify where adjustments might be needed. It also means keeping a close eye on the public consultation process — especially if you operate in a sector likely to be impacted by these shifts.
At Chamlabour, we help employers prepare confidently for legislative changes like these. From reviewing your severance policies to making sure your pay practices align with minimum wage laws, we’ve got your back.
👉 Become a Chamlabour Member and stay informed, compliant, and confident — no matter how the law changes.
