IOC Law / Africa Intelligence / South Africa
Employment Law in South Africa
The employment framework includes the Basic Conditions of Employment Act, Labour Relations Act, Employment Equity Act, National Minimum Wage Act, occupational-health-and-safety legislation, Unemployment Insurance legislation, skills-development legislation and the Compensation for Occupational Injuries and Diseases Act. Bargaining-council agreements and sectoral rules may add binding terms.
Written contracts should address role, remuneration, hours, overtime, leave, workplace, benefits, confidentiality, intellectual property, restraint where justifiable, policies and termination. Mandatory minimum conditions cannot be contracted out of except through lawful mechanisms. The national minimum wage is R30.23 for each ordinary hour worked from 1 March 2026, subject to special categories stated by the Department of Employment and Labour in its 2026 announcement.
Dismissal must have a fair reason and fair procedure. Misconduct, incapacity and operational requirements require different processes. Retrenchment is consultation-led and cannot be implemented as a simple contractual notice exercise. Keep role requirements, performance management, discipline and consultation evidence contemporaneously.
Employers register and declare for UIF and, where applicable, PAYE and Skills Development Levy. The UIF uFiling portal supports employer registration, declarations and payment. Employers must also register with the Compensation Fund and insure workers against occupational injury and disease; the Department’s Compensation Fund guidance explains employer obligations.
The Employment Equity Amendment Act took effect on 1 January 2025. Employers with fewer than 50 employees are no longer designated solely because of turnover. Designated employers with 50 or more employees must prepare and implement employment-equity plans and align with the five-year sector numerical targets published in April 2025. The Department confirms the current position in its 2026 statement. All employers remain subject to the prohibition on unfair discrimination.