The latest amendments to South Africa’s Labour Relations Act, 1995, introduce significant changes aimed at protecting workers and ensuring fair labour practices, which are especially relevant for SMEs. These changes reflect an ongoing effort to address issues like temporary employment, fixed-term contracts, and part-time work arrangements, all while holding employers accountable for labour law compliance.
One of the most impactful updates is the regulation of temporary employment services (TES). Employees working through TES, often referred to as labour brokers, are now deemed permanent after three months of service unless the nature of their work is explicitly temporary. This provision requires SMEs to review their use of TES workers, as the amendments impose joint liability on TES and their clients for compliance with labour laws, ensuring that employees are not treated less favourably than those in permanent positions.
Fixed-term contracts have also come under closer scrutiny. SMEs are now limited to employing workers on fixed-term contracts for a maximum of three months unless a justifiable reason exists for extending the contract. For example, such contracts are permissible for seasonal work, projects with a defined duration, or cases where the employee is a non-citizen with a valid work permit. Employees on fixed-term contracts exceeding three months must receive benefits comparable to those of permanent employees.
Part-time employees earning below the earnings threshold are also afforded greater protections. Employers are required to treat part-time workers no less favourably than full-time employees performing the same or similar work unless there is a legitimate reason for differential treatment. This includes access to training and promotion opportunities, ensuring fair integration of part-time workers into the workforce.
Another critical change involves the concept of joint liability. The amendments stipulate that businesses engaged in related activities to circumvent labour laws may be deemed joint employers and held collectively accountable for any breaches. This provision is particularly relevant for SMEs that collaborate with contractors or other entities, emphasizing the need to vet partners and ensure compliance across all operations.
The amendments also strengthen the rights of trade unions and employees regarding organizational rights and picketing rules. These changes empower unions to represent non-standard workers and extend organizational rights to those engaged in fixed-term, part-time, or TES roles. SMEs must prepare for potential increases in union activities and ensure their workplace policies comply with these developments.
For SMEs, these amendments signal a shift toward greater accountability and equitable treatment of workers. Employers must adapt their HR policies, contracts, and operational practices to align with the new requirements. Non-compliance could result in significant legal and financial consequences, underscoring the importance of staying informed and seeking legal guidance when necessary.
In navigating these changes, SMEs can leverage the expertise of legal professionals to ensure compliance and mitigate risks. The amendments present an opportunity to build a fairer, more productive workplace, ultimately contributing to long-term business success.
The StartUp Legal offers expert legal services tailored for SMEs, helping you secure a winning edge. For personalized support, book a complimentary consultation: https://calendar.app.google/nWoZREUnBUCwhYen7 or email us at hello@thestartuplegal.co.za.
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