Madame Acting Director-General

Madame Inspector-General

Judge-President of the Labour Court & Labour Appeal Court

Executive Director of the International Labour Organisation (ILO)

Legal Academics from South African Universities

Distinguished Speakers

Senior Government Officials

Stakeholders within the South African Labour Market

Ladies & Gentlemen

It is my privilege to address you today at the Annual Employment & Labour Law Indaba.  This gathering provides a platform wherein we can hold meaningful dialogue to reflect on some pertinent issues, particularly in the space of the Labour Market. We took a daring and daunting task to commit to having this event at least once per year. If the attendance and lineup of speakers in this indaba is anything to by, there are definite signs of growth.

Furthermore, this undertaking is a testament to our commitment in the 7th Administration to foster a fair, just, and thriving South Africa for all.  As we navigate the path toward economic recovery and sustainable growth, it is essential that we establish a solid foundation rooted in fair, equal and equitable labour practices. Compliance with our nation's employment and labour laws is not merely a statutory obligation; it is a critical component of creating a stable environment that attracts investment, encourages entrepreneurship, and promotes competitiveness in the global market. Labour market in which the rights of the workforce would be protected and championed,

As the Department of Employment & Labour, we are committed to:

Regulating the labour market:

This includes enacting and enforcing legislation, ensuring compliance with regulations, and protecting human rights in the workplace. Essentially, these rights have got to be heroed as human rights. At the heart of the enforcement, is a deep acknowledgement that the labour market dynamism cannot leave worker rights and the enforcement thereof to pure chance.

Promoting decent employment:

Creating more jobs, improve working conditions, and ensure fair wages and benefits. The fact that those jobs have got to be decent, cannot be over-emphasised. Especially in a country such as ours where the unemployment rate is unacceptably high.

Ensuring fair labour practices:

This involves promoting sound labour relations, preventing discrimination, and ensuring that workplaces are free from harassment and intimidation. This is at the core of our Employment Laws.

Providing social safety nets:

Managing the Unemployment Insurance Fund and the Compensation Fund to provide support to vulnerable workers and their families. Social security is an indispensable cushion in instances wherein the need of such, arises.

Enhancing occupational health and safety:

Focusing on improving workplace safety, reducing occupational injuries and illnesses, and promoting a culture of health and safety. As the cliché states: “one death in the workplace, is one death too many"

Promoting social dialogue:

Working with employers, unions, and other stakeholders to develop and implement policies that address the needs of all parties. We can take pride in the fact that our dialogue is institutionalised at the NEDLAC level.

Promoting equity and inclusivity:

Working to eliminate discrimination and promote equal opportunities for all workers, regardless of race, gender, religion, or disability. Essentially, leaving no one behind.

Programme Director, as we recently celebrated 30 years of democracy, we can affirm that our policies and legislation governing the labour space have evolved to safeguard worker's rights, enhance fairness, and ensure equitable and secure working conditions.  Legislative frameworks, such as the Labour Relations Act (1995) and Basic Conditions of Employment Act (1997), have played indispensable roles in that regard.  the enforcement of tougher mechanisms through the Labour Inspections and the CCMA remains a priority to protect vulnerable workers as well as ensure compliance.

At the onset of democracy, to date, The Department of Employment and Labour is proud to have presided over a dispensation that birthed a legislated framework, including the following:

• The Labour Relations Act, which set parameters for Labour and trade union rights and a robust system of collective bargaining and conflict resolution

•  The BCEA (Basic Conditions of Employment Act, which provides a set of minimum working conditions and standards

• The Employment Equity Act, which encourages employers' hiring practices to reflect local and national demographics;

• The COIDA (Compensation of Occupational Injuries and Diseases Act) and the Occupational Safety and Health Act that regulate the promotion of healthy and safe workplaces.

• Social dialogue mechanisms led by NEDLAC (National Economic Labour and Development Council) – hailed as a major achievement by the ILO (International Labour Organisation);

• The National Minimum Wage Act which set at threshold for wages, immediately uplifting the wages of over 6 million workers since it was introduced in 2019.

Programme Director, the South African Labour Laws continue to play a crucial role in shaping the dynamics of the workplace and ensuring fairness and protection for both employees and employers. Effective labour laws contribute to a thriving economy. When employers treat employees fairly and protect their rights, it fosters a positive work environment. This positive atmosphere encourages collaboration, enthusiasm, and productivity, ultimately benefiting the economy.

Unfair discrimination practices in the workplace have led to under-utilization of the greater portion of the productive population of South Africa. Although the country lacks skills in certain critical areas in the economy, many graduates are, nonetheless, either underemployed or unemployed, the majority of whom are Black people, females and persons with disabilities.

Although this country has one of the most diverse populations in the world, this did not translate into a strategic business advantage in the country, and it had serious implications for the economic viability and efficiency of South Africa, which in turn undermines its development and sustained competitiveness in the global market.

Employment Equity legislation was introduced in South Africa to address extreme disparities in the distribution of labour market opportunities.  A key indicator of these disparities was labour market segregation involving job reservation. These disparities were the direct legacy of past discriminatory laws, particularly laws that deliberately excluded certain groups of people from key decision-making positions and skills development opportunities in the workplace. A resultant feature of this exclusion is the gross under-representation of black people, women and persons with disabilities in key areas of the labour market, including management, science and technology-based occupations.

To give effect to the right to fair labour practices referred to in the Constitution of the Republic and to comply with the obligations of the Republic as a member state of the International Labour Organisation (ILO), the Department has presided over a robust labour law regime and endeavoured, over the past years, to amend South African labour laws to reflect the changing labour dynamics and legal requirements in the country and globally. And also, to fast track the transformation of the workplace.

Programme Director, inspired by the President's SONA of 2025 and previous years, the review of the country's labour market policy and other reform options will serve to enhance South Africa's job market performance, drawing from international evidence and new analysis. The Department is exploring much scope for improving the design of its key labour market processes and institutions— collective bargaining, the Compensation Fund, the Unemployment Insurance Fund,

The employment mandate of the Department of Employment and Labour through employment protection legislation— and the much-needed Labour Activation Programmes is to improve job seekers' prospects. The Department is intentional in ensuring that the South African labour market and these reforms should primarily benefit disadvantaged groups such as youth and women who bear the brunt of high unemployment in the country.

The decision by social partners: business, labour and communities, to introduce the National Minimum Wage, immediately raised the wages of over 6 million workers. Annual National Minimum Wage increase has been published on the 1 March 2025 which extends protection to vulnerable workers by publishing national minimum wages for all sectors.

Programme Director, The Labour Inspectorate has intensified efforts to ensure adherence to employment laws across all nine provinces through high impact blitz inspections. These inspections are in partnership with the Department of Home Affairs, the Bargaining Councils and other law enforcement agencies, including the South African Police Service. The scale and scope of these inspections demonstrate our commitment to upholding labour standards nationwide: -

• Blitz inspections are the yard-stick we use to determine compliance with enforcement. Noncompliance has a potential of impacting negatively on the businesses concerned. Potential penalties for non-compliance include fines and legal fees, interruption and loss of business and imprisonment.
• The mega blitz inspections have so far proven that a number of employers within the targeted sectors are continuing to undermine the South African labour legislation including employing undocumented foreign nationals.
• Through unannounced or surprise visits, the inspector is enabled to observe the systems of work in normal use in the enterprise. Unannounced visits are also done if the inspector has reasons to believe that an announced visit would allow time for concealment of irregularities. An inspection visit resulting from a formal complaint should also normally be unannounced, to prevent documents and evidence from being concealed and to protect complainants from harassment and discriminatory behavior before the inspection.
  
  Our dedicated teams have been meticulously verifying compliance with:
  
  Basic Conditions of Employment Act (BCEA)
  
  National Minimum Wage Act (NMWA)
  
  Occupational Health and Safety Act (OHSA)
  
  Compensation for Occupational Injuries and Diseases Act (COIDA)
  
  Unemployment Insurance Act (UIA)
  
  Employment   Services Act, which also addresses the employment of foreigners in the labour markets.
  
  Our inspections have revealed instances of non-compliance, including underpayment of wages, unlawful deductions, and inadequate health and safety measures.
  
  We approach enforcement with a balance of firmness and fairness. Employers found in violation of the laws are issued with compliance orders with clear deadlines for corrective action. In situations where immediate risks to health and safety are identified, Prohibition Notices are issued to halt hazardous activities until compliance is achieved.
  
  In the past five years the Department has conducted 1 280 312 inspections. There were 284 103 (22%) employers who did not comply and were served with enforcement notices. There were 23 994 employers who remained non-compliant after the expiry of the enforcement notices and these were referred for prosecution.
  
  Financial Recoveries for the last three financial years are as follows:
  
  For 2021/22 financial year R 506 346 147.75 was recovered from the prosecutions which included recoveries of R 10 946 484. 22 under the National Minimum Wage Act that went straight into the coffers of the vulnerable employees.
  
  For 2022/23 financial year R 133 687 493.86 was recovered from the prosecutions which included recoveries of R45 716 355.10 under the National Minimum Wage Act that went straight into the coffers of the vulnerable employees.
  
  For 2023/24 financial year R 77 198 755. 93 was recovered from the prosecutions which included recoveries of R27 595 865.73 under the National Minimum Wage Act that went straight into the coffers of the vulnerable employees.
  
  We remain deeply concerned about the high unemployment rate of 31,9%, mostly among South Africans, particularly affecting our youth. Concurrently, the employment of undocumented foreigners in various sectors raises serious concerns about exploitation and thus undermining our legal frameworks.
  
  Our administration is committed to addressing these challenges comprehensively and humanely. We are collaborating closely with the Department of Home Affairs to ensure that employment practices comply with immigration laws, and that all workers—regardless of their origin—are treated with dignity and fairness.
  
  Programme Director, the many pieces of legislation that define our economy and labour market today remain a thread that connects all of us. The recent completion of negotiations of the amendments to about 60 sections in our labour laws is a case in point. At the centre of these reforms is the need to improve the labour market's efficiency and promote workers' rights, particularly in the face of the changing nature of work. These amendments will continue to define our labour market beyond today hence the dialogue between social partners remain a central convergence point in South Africa's democracy.
  
  We hold this Indaba under unique circumstances, where the 7th Administration, characterised by the Government of National Unity (GNU) had resolved to dedicate the next five years to actions that will advance three strategic priorities:

• To drive inclusive growth and job creation,
• To reduce poverty and tackle the high cost of living, and
• To build a capable, ethical and developmental state.

Government has since finalised the Medium-Term Development Plan (MTDP) 2024/2029. Through this plan, clear objectives and a roadmap to achieve the priorities will be articulated. The GNU presents us with opportunities and challenges to achieve impact for our country. We have to fully utile the consultative muscle of NEDLAC, as well as the social security policy implementation through the Unemployment Insurance Fund and the Compensation Fund. Productivity South Africa and CCMA are also poised to contribute to labour market efficiency. I must say that our country is rich with potential.

This year's Annual Employment & Labour Law Indaba comes at a pivotal moment where our country is faced with numerous challenges such as: unemployment, poverty and inequality, and the need for radical economic inclusion.

South Africa as a global player is not immune from the effects of the polycrisis, digitalisation, climate change and geopolitics. Climate change affects employment, economic stability, and social protection measures but I am pleased to note that significant strides against climate change are being made through Presidential Climate Change Commission.

The latest labour law reforms were initiated during 2021, following a proposal by NEDLAC social partners.

The process which was to be undertaken in three phases focused on:

• amendments to labour laws to improve the efficiency of the labour market institutions mostly with respect to dismissals, retrenchments, collective bargaining,
• strike action; codes of good practice and secondary legislation;
• responding to changes in the labour market including protections for non-standard workers.

The latest amendments are intended to ensure labour laws remain relevant and responsive to the changes and challenges in the labour market, among others, which are unemployment, seeking what is it business and labour can sacrifice or give away to create employment without compromising job security, what can be done to help small businesses thrive and create employment.

The labour law amendments proposals that should be tackled by all social partners will focus on:

• simplification of procedural fairness.
• limit on compensation for procedurally unfair dismissals.
• excluding high-paid employees from certain statutory protection.
• inquiry by Arbitrator.
• redefining unfair labour practice, dismissal and retrenchment procedures.
• improved efficiency of bargaining councils.
• improved efficiency of the Labour Court.
• limit protection on probation; alignment of council/ agency jurisdiction.
• introducing a broader definition of employees.

I am aware that organised labour as a social partner has begun making its voice heard regarding these aforementioned proposals and their voice should be considered.

Other changes include:

• alignment of CCMA jurisdiction.
• limitation of liability.
• harmonisation of LRA and EEA dispute resolution.
• clarification and expansion of CCMA jurisdiction for severance pay claims; introduction of protection for workers who are required to be available for work but are not guaranteed work by their employers.
• retrenchment procedures.
• severance pay.
• exclusion from collective agreements.
• dismissals: qualifying period for new entrants into the labour market.

Although in recent years there have been amendments to some pieces of labour legislation like unemployment insurance (UIA) and the compensation for occupational injuries and diseases (COIDA) – a major labour amendment was last undertaken back in 2009/10 and the changes came into implementation in 2013.

The key focus of 2013 reforms was to respond to increased informalisation to ensure that vulnerable categories of workers receive adequate protection and are employed in conditions of decent work; enhance the effectiveness of the primary labour markets institutions such as the Labour Court, the CCMA, the Essential Services Committee, and the labour inspectorate; strengthen the implementation of Employment Equity and enhance equal treatment in the workplace; and re-position the public employment services.

The proposed Occupational Health and Safety (OHS) Amendment Bill is poised to bring significant changes to workplace safety in South Africa. While much of the focus has been on how these changes impact employers, it's equally important for employees to understand the new rights and protections this legislation provides. The Bill strengthens worker protections, empowers employees to take an active role in ensuring their own safety, and provides clear mechanisms for addressing health and safety concerns.

Key Changes:

• Inclusion of a Health and Safety Management System
• Inclusion of Full-Time Health and Safety Representatives
• Inclusion of an Employee's right to leave unsafe environment
• Inclusion of discrimination under victimization
• Inclusion of Inspector's power to impose fines

The proposed OHS Amendment Bill significantly enhances worker protections, empowering employees to take control of their safety and well-being in the workplace.

Programme Director, we fully subscribe to the ILO's Decent Work Agenda.  Decent work sums up the aspirations of people in their working lives. It involves opportunities for work that is productive and delivers a fair income, security in the workplace and social protection for all, better prospects for personal development and social integration, freedom for people to express their concerns, organize and participate in the decisions that affect their lives and equality of opportunity and treatment for all women and men.

Overall, the concept of decent work strives to create a work environment that upholds the rights and well-being of workers, promotes inclusive growth, and contributes to sustainable development. It requires a comprehensive approach that involves collaboration between governments, employers, workers' organisations and other stakeholders to address the diverse dimensions of work and build fair and equitable labour markets.

This Employment & Labour Law Indaba is thus, not only an occasion to look back at three decades of collective achievements and reflect on the challenges encountered, but also an opportunity to reflect on our shared path going forward with renewed commitment.

I THANK YOU.

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