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SA labour law reforms 2026: New retrenchment pay, gig worker protection proposed

Mercury Reporter|Published

The Labour Laws Amendment Bill has been published for public comment, marking a pivotal moment for workers' rights.

Image: Leon Lestrade/ Independent Newspapers

A raft of labour law changes are on the cards, including increasing severance pay for retrenched workers, extending protections to workers in the gig industry, and overhauling the maternity leave system to make it gender-equitable.

In a recent statement, Cabinet said the Labour Laws Amendment Bill has been published for public comment. The Bill seeks to modernise and strengthen South Africa’s labour law framework by amending the Labour Relations Act and the Basic Conditions of Employment Act, as well as making revisions to the National Minimum Wage Act and Employment Equity Act.

“It aims to enhance worker protection, ensure alignment with Constitutional rights to equality and dignity, improve enforcement of employment standards, and clarify dispute resolution mechanisms. The Bill strengthens protection for vulnerable and non-standard workers while maintaining an appropriate balance with employers’ operational requirements.”

Trade union UASA stated that the proposed changes will modernise South Africa’s labour system. Abigail Moyo, spokesperson of the trade union UASA, said that the amendments propose doubling retrenchment pay, extending protections to gig workers, and establishing a gender-equitable maternity leave system.

“These amendments represent a significant step toward modernising South Africa’s labour system and extending protection to workers who have long been vulnerable, especially gig workers, freelancers, and independent professionals. UASA strongly supports extending labour protections to platform workers and those previously classified as independent contractors.”

Broader worker protections

She added that the reforms broaden the definition of eligible workers, potentially including freelancers, e-hailing drivers, and delivery couriers in collective bargaining, dispute resolution, and fair labour standards.

“This change will entitle actors and other film industry workers to sick leave, maternity leave, severance pay, and compensation for occupational injuries or diseases. UASA views this as a significant development, advocating for fair treatment and pay for freelancers and contract workers, a growing segment of the South African workforce.”

Changes to retrenchment policy

On retrenchments, the proposed changes include increasing statutory severance pay from one week to two weeks’ remuneration for each completed year of service and strengthening financial support for workers who lose their jobs due to circumstances beyond their control.

Implications for employers

For employers, the changes will make it easier to dismiss workers who do not meet the job requirements, as the amendments suggest that employees can be dismissed without a hearing in the first three months of employment or within the probation period, whichever comes first. Compensation for unfair dismissal is capped at R1.8 million, even for high earners.

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