What Employers and Employees Need To Know: Key Labour Law Changes In South Africa, 2025

 

As South Africa's Labour Law landscape evolves, 2025 brings several important legislative changes that both employers and employees should be aware of. These changes affect earnings thresholds, employment equity, protected benefits under key Acts, and more. Understanding what has changed (and what is imminent) is essential to ensure compliance, avoid legal risk, and adapt HR practices. 

 

 

Here's a summary of what's new, and what you need to do:

 

1. Increase to the Earnings ("Protected Employee") Threshold - Effective 1 April 2025

        

    What changed:

  • The earnings threshold under section 6(3) of the Basic Conditions of Employment Act (BCEA) has been raised to R261,748.45 per annum (approximately R21,812.37 per month) effective 1 April 2025. 

  • This threshold determines which employees are "protected" under various labour law provisions. Employees earning below this threshold are entitled to certain core protections (e.g. overtime, night work, rest work, public holiday pay, etc) under the BCEA, LRA (Labour Relations Act) and EEA (Employment Equity Act). 

 

    Implications:

  • As the threshold increases, more employees will be "protected" i.e. entitled to the BCEA provisions that apply to those earning below the threshold. Employers will need to check who in their workforce falls below or above the threshold under the new level.

  • For those above the threshold, certain provisions no longer automatically apply (unless otherwise agreed) - meaning terms such as overtime, rest periods, etc., may need to be negotiated or contracted. Employers should review contracts and policies.

 

2. Employment Equity (EE) Amendment Act No.4 of 2022 - Effective 1 January 2025

 

    Key Amendments Include:

  • Exclusion of small employers (<50 employees) from certain obligations: Employers with fewer than 50 employees are no longer required to comply with Chapter III of the EEA, which includes preparing EE Plans and annual reporting, from the 2025 reporting cycle. 
  • Change in definition of "designated employer". Previously, employer status under the Act was determined by either number of employees or annual turnover in many sectors. From 1 January 2025, the turnover threshold is removed, so only employers with more than 50 employees are "designated employers".
  • Sector-specific numerical targets: The Minister of Employment and Labour is empowered to set numerical targets by sector to ensure equitable representation of designated groups at all occupational levels. Employers will have to align their EE Plans with sectoral targets once published. 
  • Broadened definition of "disability": The Amendments expand it to include intellectual and sensory impairments, aligning with international norms. 

 

3. What Proposed Further Reforms Are On The Table:

 

While some changes are now law, there are additional reforms under consideration or in draft form via the Labour Law Reform process. These include: 

 

  • Proposed limitation of remedies for unfair dismissal of high-earning employees, where reinstatement may not always be the remedy for non-automatic dismissals, but compensation may be capped. 
  • Clarification or reform of procedures for dismissals (fair procedure, right to respond, etc).
  • New qualifying period (probation) before full protection against unfair dismissal. 
  • Changes to large-scale retrenchment processes and related rights. 

 

These proposals are still going through NEDLAC and Parliament, so not all are law yet, but they indicate the direction. 

 

4. What Employers Should Do Immediately

 

To stay compliant and reduce risk, here are steps employers should be taking now:

 

  • Audit employees salaries and classifications - To see who falls above/below the new earnings threshold to determine which BCEA protections apply.
  • Review employment contracts and policies - Ensure terms concerning hours, overtime, rest, etc., are compliant with the new threshold and, adjust where needed.
  • Prepare for sectoral targets - Stay alert for government gazettes or notices setting targets in your sector; calibrate recruitment, training, promotion strategy accordingly. 
  • Train HR and management - Educate teams on what protections apply, what reporting obligations exist, and what rights employees now have under the changes. 

 

5. For Employees: What These Changes Mean For You

 

If you are an employee, here's how the new changes may benefit or affect you:

 

  • If you earn under R261,748.45 per annum and were previously above a lower threshold, you may now gain entitlements (like overtime, rest period, etc.) that you didn't have before. 
  • If your employer is now a "designated employer" under the new rules, they have legal obligations under EE that effect representation, promotion, non-discrimination, etc.
  • Broader categories of disability are now recognised, meaning legal protection and accommodation obligations in more cases. 
  • If you are subject to unfair dismissal, the changes in remedies or procedure may affect how you make a claim.

 

Conclusion

 

2025 marks a pivotal year for labour law in South Africa. With the earnings threshold raised, the reform of employment equity obligations, and proposed broader changes in dismissal and employee protections, employers need to act proactively. Legal compliance is no longer just about avoiding penalties - it's about fostering fair, equitable workplaces and adapting to regulatory expectations. 

 

At FRS Attorneys Inc. we advise all of our clients - employers and employees - to closely review their current practices, contracts and policies to align with these changes. If you need assistance auditing your employment contracts, revising policies, or preparing for regulatory compliance under these new laws, please contact us for a consultation. 

 

Disclaimer:

This blog post is provided for general information purposes only and does not constitute legal advice. The content refelcts legislative updates as of 2025 but may not include all nuances, regulations, or subsequent amendments.