Proposed Amendments to the Basic Conditions of Employment Act, National Minimum Wage Act, and the Employment Equity Act
Introduction
Building on the foundation laid out in Part I, which discussed the proposed amendments to the Labour Relations Act, 1995 (LRA), Part II will delve into the changes being suggested for the Basic Conditions of Employment Act, 1997 (BCEA), the National Minimum Wage Act, 2018 (NMWA), and the Employment Equity Act, 1998 (EEA). These reforms aim at enhancing employee rights and streamlining dispute resolution mechanisms. Although less detailed, this section will outline the key adjustments proposed, highlighting the ongoing effort to modernize South Africa’s labour laws. Part III will then explore the broader implications of these legislative changes, ensuring that readers are well-informed about the potential ramifications for both employers and employees.
As noted in Part I, the proposed reforms remain subject to the legislative process. The draft bills will be reviewed by the State Law Advisor before proceeding through Parliament. Once this process begins, public comment will be invited. Since many of the final proposals did not receive unanimous support from all three social partners, further debate and amendments may occur.
Employment Equity Act (EEA)
Updated Definition of “Employment Law”
The bill amends the definition of “employment law” to remove outdated references to laws such as the Guidance and Placement Act, 1981 and the Manpower Training Act, 1981.
It incorporates newer laws such as the Employment Services Act, 2014, and the National Minimum Wage Act, 2018, reflecting the current legal framework.
Expanded Access to Arbitration for Unfair Discrimination Claims
Employees alleging unfair discrimination due to harassment, irrespective of their level of remuneration, may refer their disputes to the CCMA for arbitration, rather than being obliged to approach the Labour Court.
Employees earning below the earnings threshold determined by the Minister under the BCEA can also refer unfair discrimination claims to arbitration at the CCMA instead of the Labour Court, making dispute resolution more accessible.
Clarification on Dispute Referral to Bargaining Councils
A new provision clarifies that disputes under the EEA may be referred to a bargaining council if:
A collective agreement binds the parties to the dispute; or
The bargaining council is accredited under the Labour Relations Act to handle conciliation or arbitration of such disputes.
Basic Conditions of Employment Act (BCEA)
Severance pay would be increased from one week to two weeks per year of service.
Employers must transfer benefit fund payments on time or face financial penalties.
The amendments aim to align the BCEA with sectoral determinations, ensuring that basic conditions of employment are standardized across various industries. This includes adjustments to working hours, leave entitlements, and other fundamental employment conditions.
To ensure compliance with the BCEA, the proposed amendments introduce stricter enforcement mechanisms. This includes increased penalties for non-compliance and enhanced powers for labour inspectors to enforce basic employment standards.
National Minimum Wage Act (NMWA)
The amendments to the NMWA are aimed at strengthening enforcement and compliance measures. Notably, amendments have been proposed to section 4(4) and (5) and section 5(1)(a), in order to exclude deferred payments, such contractual bonuses, from the determination of the minimum wage.
Conclusion
The proposed amendments to South Africa’s labour laws aim to modernise employment standards across sectors. By increasing severance pay, enforcing timely benefit fund payments, and introducing stricter compliance mechanisms, the proposed amendments to the BCEA aim to ensure uniform employment conditions. The proposed changes to the NMWA clarify deferred payments and contractual bonuses, emphasising a fair minimum wage. These potential reforms balance worker protections with employer flexibility, with the aim of fostering a fair labour environment.