Honourable Chairperson,
Honourable Members of NCOP,
Minister of Agriculture,
Premiers present,
Deputy Ministers,
MECs present,
Special Delegates,
Parliamentary Officials
Government Officials,
All Guest and
Fellow South Africans
Chairperson, exactly on this day in 1999 we held our second national and provincial democratic elections as the country. The 2nd June 1999 National and Provincial Elections came after tremendous progress has been made in crafting the laws of a democratic country free of oppression and exploitation.
For instance, the country has already developed and adopted on 8th of May 1996 a Constitution of a Democratic South Africa. A Constitution whose Section 23 states that everyone has the right to fair labour practices, every worker has a right to form and join trade union, to participate in the activities and programmes of a trade union. And every worker has the right to strike.
Now, quick on the heels of the adoption of the Constitution on 8th May 1996, the Labour Relations Act came into effect on 11 November 1996, deriving its existence from Section 23 of the Constitution, and with explicit intentions of aligning labour law with the Constitution and with International Law.
Let us remember that, before 1994, the exploitation of workers was a feature of life in South Africa for decades. Apartheid thrived on cheap labour, workers had to contend with the migrant labour system, job reservation, and other oppressive practices.
Again, before those Elections of 2nd June 1999, the Employment Equity Act of 1998 had already been crafted and came into effect two months after those elections, to be exact on Women's Day in 1999 meaning on the 9th of August 1999, prohibiting among others unfair discrimination on grounds of gender, sex, pregnancy. marital status, and race.
Now, Hon. Chairperson, it should be clear that individual, groupings, formations, organizations fighting South African Labour Laws are actually fighting the South African Constitution.
No small wonder they have been losing in our South African courts on daily basis, currently they are even losing in International Courts.
As we all know, it is one thing to have these good labour laws, it is another to ensure that they foster development, empowerment and transformation of our country. Once we notice that despite the existence of these labour laws but the developmental, empowerment and transformational agenda is stalled we intervene with amendments as it is a case with the Employment Equity Act of 1998.
We came up with Employment Equity Amendment Act, No.4 of 2022, to reduce the regulatory burden for small players, that is, those employers that employ between 1 to 49 employees, to empower the Minister to regulate the sector specific numerical Employment Equity targets, to promulgate Section 53 and to strengthen compliance through the issuing of Employment Equity compliance certificates.
Key in the implementation of the amendments and regulations is the setting of five-year sector Employment Equity targets, the enhancement of Employment Equity System. National Employers' Association of South Africa (NEASA) and Sakeliga were among the first to file for an urgent application with the Gauteng High Court in Pretoria to fight the implementation of the South African Constitution. They interdicted the implementation of Employment Equity Amendment Act. The High Court declined to suspend what it regarded as a lawful exercise of statutory authority, emphasizing the separation of powers.
The High Court further held that the consultation process preceding the publication of the sectoral numerical EE targets was lawful and employers retain flexibility to justify deviation for non-compliance in terms of section 42(4) of the Employment Equity Act of 1998.
On the 13 of November 2025, the Applicants approached the Supreme Court of Appeal, which on the 13 of March 2026 dismissed with cost the application for leave to appeal on the grounds that there is no reasonable prospect of success in an appeal and there is no other compelling reason why an appeal should be heard.
Constitutional Court also denied NEASA and SAKELIG's urgent application for an interdict to halt the implementation of Employment Equity Amendment Act.
I do want to emphasize that labour laws are the heartbeat of a just, equitable, inclusive, and productive South Africa. They safeguard the dignity of workers, ensure fairness in the workplace, and create the stability necessary for businesses to grow and thrive. In our young democracy, these laws serve both as a shield for the vulnerable and as a foundation for inclusive economic development. They prevent exploitation, promote decent work, and ensure that every South African has a fair opportunity to earn a living with security, dignity, and respect.
Globally, South Africa's labour laws are widely recognised as progressive and robust. SA labour laws are largely aligned with the standards of the International Labour Organization (ILO) and international best practice.
Hon. Chairperson, I must also report that for over three decades, a major disagreement existed within the ILO regarding whether Convention No. 87 actually protected the right to strike. Trade unions and workers argued it was inherent, while some employer organizations and certain States contended it was excluded because it was not explicitly written into the text.
Due to a paralysis in the ILO's supervisory mechanisms caused by this debate, the ILO Governing Body requested the ICJ to step in and provide a definitive treaty interpretation.
The ICJ examined the context, treaty texts, and international law rules, ultimately finding that the absence of the word "strike" does not mean the right is excluded from the convention. The Court reasoned that the freedom to organize and advocate for better working conditions would be rendered ineffective if workers did not have the right to legally withdraw their labour as a last resort
The ruling gives major momentum to trade unions worldwide, establishing a globally recognized standard that restricts or criminalizes strike actions are largely inconsistent with international law. For workers, such as those in South Africa where the right to strike is already heavily enshrined in the Constitution, this ruling reinforces their domestic protections and adds tremendous international legal weight against attempts to erode labour rights.
Despite these strengths of the labour laws, important gaps remain, leaving some workers without adequate protection in new emerging forms of employment.
Precarious and non-standard forms of work, such as gig economy roles, on-call arrangements, and misclassified “independent contractors", often fall outside the full scope of legal protection. Vulnerable groups continue to face limited access to unemployment insurance and compensation benefits.
In addition, governance challenges within social security funds, outdated definitions of an “employee," and inefficiencies in appeals processes have hindered effective service delivery, leaving some individuals without timely support in moments of need. The Constitutional Court's 2025 ruling on parental leave has further underscored the urgency of aligning our laws with constitutional principles of equality and non-discrimination.
This Budget advances bold and practical measures to address these shortcomings. The Labour Law Amendment Bills of 2025, developed through the NEDLAC process and recently published for public comment, aim to strengthen protections for on-call workers, codify constitutionally compliant shared parental benefits, enhance severance pay provisions in key areas, clarify minimum conditions of employment, and simplify compliance for small businesses.
At the same time enhance dispute resolution mechanisms by expanding the jurisdiction of both the CCMA and the Bargaining Councils in dealing with labour disputes.
In addition, the Unemployment Insurance Amendment Bill of 2026 and the Compensation for Occupational Injuries and Diseases (COID) Amendment Bill of 2026 propose the establishment of independent Accounting Authority Boards aligned with the Public Finance Management Act.
These reforms will introduce professional governance structures, separate fund operations from the Department, modernise the definition of employee to extend coverage to vulnerable workers, and provide clearer tests to distinguish genuine independent contractors. They will also enable electronic applications and payments of benefits.
Importantly, these reforms are designed to ease the compliance burden on small and medium-sized enterprises, the true engines of job creation, by reducing administrative complexity and lowering costs, thereby enabling small businesses to employ more people and contribute meaningfully to economic growth.
In this Budget, we reaffirm that a transformed South Africa is one where every worker is valued, every family is supported in times of need, and our economy grows with justice at its core. To protect disability rights, labour legislation, particularly, the Code of Good Practice on the Employment of Persons with disabilities, provides frameworks for including people with disabilities as autonomous members of the workforce, though implementation remains a challenge.
Additionally, to redress power imbalances, the LRA promotes Collective Bargaining permitting workers to negotiate terms and conditions collectively, which is critical for balancing the power between capital and labour. To protect vulnerable workers, the BCEA makes provision for specific sectoral determinations for domestic and farm workers, which have brought some of the most exploited, previously unprotected groups under the ambit of labour protection.
© 2019 - The South African Department of Employment & Labour
