One in a 100 000: Resolving workplace disputes

Workplace disputes

By Jessie Taylor South African employees have various options to challenge unfair practices in the workplace, from courts to bargaining councils. One organisation protecting employee rights is the Commission for Conciliation, Mediation and Arbitration (CCMA). The CCMA deals with over 100 000 cases yearly, most relating to allegations of unfairness against employers. Among the issues raised with the CCMA are discrimination, unfair dismissals, retrenchments, the provision of benefits, suspensions, warnings, whistle-blowing and sexual harassment. Around 60% of cases referred to CCMA arbitration are resolved in favour of the employee. The Labour Relations Act makes it very easy for employees to challenge alleged unfair dismissals and other unfair practices at private or statutory dispute resolution forums. Along with private firms, employees often have access to the dispute-resolution arms of bargaining councils and the Labour Court. However, one of the most popular bodies for addressing conflict in the workplace is the CCMA.This is the forum to be used by those industries that do not have their own bargaining councils, such as retail, IT, security, financial services, and others. The CCMA is a statutory body established in terms of Section 112 of the Labour Relations Act, and draws its legislative mandate principally from Section 23 of the Constitution. It is an independent body that neither belongs nor is affiliated with any political party, trade union or business. The CCMA derives its mandate from the purpose of the Act, which is to “advance economic development, social justice, labour peace and the democratisation of the workplace”. The CCMA is mandated to:   If you have a labour problem, take steps immediately. In the case of an unfair dismissal dispute, you have only 30 days from the date on which the dispute arose to open a case. With discrimination cases, you have six months. If a party does not comply with the arbitration award, it may be made an order of the Labour Court. The matter will go to the Labour Court instead of arbitration if the dispute relates to multiple retrenchments, strike dismissals, or unfair dismissals. The arbitration or Labour Court hearing would normally take place at a later date. Sources: CCMA | Labour Guide

Balancing progress and protection: How restraint of trade safeguards South Africa’s workforce and innovation

Two businessmen discussing restraint of trade

By Jessie Taylor In a fast-paced, competitive economy such as South Africa’s, where knowledge and intellectual property often determine an organisation’s value, the concept of restraint of trade remains a cornerstone of contractual employment. Designed to protect businesses from unfair competition and the leakage of proprietary information, restraint of trade clauses continue to be tested against the constitutional right to freedom of employment. Striking a balance between protecting legitimate business interests and upholding an individual’s right to work is one of the most nuanced tasks within South African labour law. These clauses—widely used in both the public and private sectors—require careful drafting, regular review, and, increasingly, judicial interpretation. The legal foundation of restraint of trade In essence, a restraint of trade clause is a provision in an employment contract that limits an employee’s ability to compete with their former employer after leaving their job. This can include restrictions on working for a rival, starting a competing business, or soliciting former clients for a specific period and within a specific geographic area. Historically, such clauses were viewed with scepticism. However, since a landmark in 1984, South African courts have shifted their perspective. The case established the principle that restraint clauses are presumed valid unless proven unreasonable and contrary to public policy. In other words, employees must now demonstrate why a restraint is unfair or overly restrictive. This reversal of the burden of proof reflects a strong judicial inclination to uphold contractual freedom, but not at the expense of constitutional rights – particularly the right to work as enshrined in the Constitution. The primary legal test for the validity of a restraint of trade involves four essential considerations: 1. Is there a protectable interest?This could include confidential information, client connections, trade secrets, or unique business methods. 2. Is that interest being prejudiced?Would the employee’s new role jeopardise these interests? 3. Does the employer’s interest outweigh the employee’s right to work?A fair weighing of competing rights. 4. Is enforcement contrary to public policy?Would enforcing the clause unduly harm the economy or an individual’s career? These criteria have allowed courts to apply a flexible approach, often adapting to context, such as seniority of the employee, the industry involved, or whether compensation was provided during the restraint period. A balancing act A common misconception is that any restraint clause is enforceable if signed. In reality, courts scrutinise scope, duration, and geographical limits. While restraint clauses are more common in private-sector contracts – especially in technology, finance, and sales – public sector employers are also increasingly turning to them. Roles involving sensitive data, policy formulation, or technical innovation may warrant restraint provisions to prevent undue political or commercial exploitation after an employee exits. However, the public sector faces unique challenges. Any restriction must consider transparency and the public interest. Moreover, because taxpayers ultimately fund salaries and public projects, any restraint must be proportionate and serve a defensible policy objective. Should an employer wish to enforce a restraint, the process usually involves applying to court for an interdict (injunction) to prevent the former employee from engaging in prohibited activities. Importantly, employers must act swiftly when a breach occurs. Delays in enforcement weaken the argument that the restraint protects urgent and valuable interests. To ensure a restraint is enforceable, employers—especially in the public sector—should observe the following: From the employee’s perspective, restraint clauses are serious undertakings that should never be signed without understanding their implications. Ultimately, restraint of trade clauses operate at the intersection of contract law, constitutional rights, and labour relations. They remind us that in a democratic society, freedom of contract cannot override the right to dignity and economic participation. This legal terrain is neither black nor white, and as the economy becomes more complex, restraint of trade litigation is likely to increase. Employers in both the public and private sectors would be wise to treat restraint clauses not just as contractual boilerplate, but as strategic, legally sensitive instruments that require nuance, clarity, and fairness. Sources: Bowmans Law  |  DotNews  |  Labour Guide  |  Pagel Schulenburg

Fixed-term contracts: Balancing flexibility with fairness in the workplace

Fixed-term contracts

By Jessie Taylor In South Africa, employment relationships are governed by a framework that ensures fairness and clarity for both employers and employees. Central to this framework are contractual agreements, which set out the terms and conditions of employment.  Among these, fixed-term contracts are particularly common, especially in sectors where temporary staffing solutions are required. However, the law has imposed strict conditions on the use of these contracts to prevent potential exploitation and ensure equitable treatment. Understanding fixed-term employment contracts A fixed-term employment contract specifies a set duration of employment. This period may be defined by time, the completion of a specific project, or the occurrence of a particular event. Once the term ends, the contract naturally expires unless both parties agree to renew or extend it. Several key pieces of legislation underpin the legal use of fixed-term contracts. These include the Labour Relations Act (LRA), the Basic Conditions of Employment Act (BCEA), and the Employment Equity Act (EEA). The LRA, particularly Section 198B, directly addresses fixed-term employment and outlines the rights of employees under such agreements. The BCEA provides the foundation for minimum working conditions, including hours, overtime, and termination procedures. Meanwhile, the EEA promotes equal opportunity and fairness in employment practices. Together, these laws create a structure within which fixed-term contracts can be legally and ethically applied. Section 198B of the LRA is particularly important in determining how and when fixed-term contracts may be used. It requires that employers have justifiable reasons for employing someone on a fixed-term basis. Common acceptable justifications include replacing an employee on leave, meeting a temporary surge in workload, fulfilling the needs of a specific project, or seasonal work demands. Where a fixed-term contract exceeds three months, the employer must provide a valid reason for the extended term. Failing to do so may result in the contract being considered permanent.  Additionally, the law mandates that all fixed-term contracts must be in writing, outlining the contract’s duration, the reason for its fixed term, and any other relevant details. Employees under fixed-term contracts are also entitled to be treated no less favourably than their permanent counterparts doing similar work, unless a sound reason exists for the difference.  Should an employee be engaged under a fixed-term contract for more than 24 months, they are entitled to severance pay when the contract ends, unless they are offered permanent employment instead. The employer’s obligations Employers must exercise caution when using fixed-term contracts to avoid violating employment legislation. Repeatedly renewing fixed-term contracts without valid reasons may lead to legal claims of unfair dismissal.  In such cases, employees may argue that their ongoing work created a reasonable expectation of permanent employment. To avoid this, employers must clearly communicate the temporary nature of the employment and the specific conditions under which the contract may be renewed or terminated. Compliance with labour laws is critical, not only to protect employee rights but also to shield employers from legal disputes and potential reputational damage. To manage fixed-term contracts effectively and reduce legal exposure, employers should adopt several best practices: Fixed-term employment contracts are a useful resource for organisations that require temporary staffing flexibility. However, their use is heavily regulated to ensure fairness and protect employee rights. Employers who understand and comply with the provisions of the LRA, BCEA, and EEA will be better positioned to use fixed-term contracts responsibly. By doing so, they not only minimise legal risks but also contribute to building fair and equitable workplaces. Sources: Schoeman Law  |  Labour Guide South Africa  |  Vermeulen Attorneys  |  LegalWise

Changes to the labour policies

Strategy, tablet and women in discussion in business meeting for planning, communication and ideas. Teamwork, collaboration and female workers in conversation, speaking and talking about project

By Jessie Taylor Nedlac proposals signal major overhaul of labour laws in South Africa South Africa is on the brink of its most comprehensive labour law reform in decades, following the conclusion of extensive negotiations between organised business, organised labour, and government under the auspices of the National Economic Development and Labour Council (Nedlac). If the proposed amendments become law, they could fundamentally alter the country’s employment landscape—especially for high earners, small businesses, and workers facing retrenchment. The reforms aim to streamline dispute resolution, enhance worker protections, and promote greater flexibility for start-ups while addressing inefficiencies in existing labour systems. They span four key pieces of legislation: the Labour Relations Act (LRA), the Basic Conditions of Employment Act (BCEA), the National Minimum Wage Act (NMWA), and the Employment Equity Act (EEA). In total, the proposed package includes 65 legislative changes—47 to the LRA alone. A new framework to streamline dispute resolution A central feature of the proposed reforms is a limitation on the remedies available to high-income earners (defined as those earning more than R1.8 million annually). Under the proposed changes, these employees would no longer have recourse to reinstatement through the Commission for Conciliation, Mediation and Arbitration (CCMA) in cases of unfair dismissal—unless the dismissal is found to be automatically unfair, such as whistleblowing or discrimination. Instead, remedies for other unfair dismissals would be restricted to capped compensation. The earnings threshold will be adjusted annually based on the consumer price index, and the changes aim to reduce the caseload burden on the CCMA and speed up dispute resolution processes. Another major focus is retrenchment law. Labour stakeholders successfully pushed for the extension of the facilitation period in large-scale retrenchments from 60 to 120 days. This is designed to ensure that retrenchment is a last resort, and that employers have exhausted all alternative options. Additionally, statutory severance pay is set to increase from one week to two weeks of remuneration per year of service – although business representatives opposed the change. The amendment will only apply to service accumulated after the commencement of the new legislation. Other proposed changes to the retrenchment process include: These reforms aim to align legal processes with Labour Court rulings and to reduce delays in resolving retrenchment-related disputes. Start-up relief and small business flexibility In a move aimed at encouraging entrepreneurship, the government proposed exempting start-up businesses with fewer than 50 employees from conditions set by extended bargaining council agreements. This proposal was supported by business, but opposed by labour, which raised concerns about potential abuse. To mitigate this risk, additional safeguards are proposed, such as requiring that the directors of a new company not have previously been registered within the last two years and imposing a financial threshold to prevent wealthy entities from qualifying as start-ups. These changes form part of a broader recognition of the role that small and medium-sized enterprises (SMMEs) play in job creation and economic growth. Another significant change involves revising the scope of what constitutes an unfair labour practice. Under the proposed amendments, issues such as disputes over promotions would no longer fall under this definition. Instead, the focus would be limited to unfair suspension or disciplinary action short of dismissal, and occupational detriment arising from protected disclosures. However, a one-year transitional period has been proposed for certain sectors—such as public service, education, and police—during which time promotion disputes can still be pursued, allowing time for new collective agreements to be established. Another key area of reform is procedural fairness in dismissals. A proposed amendment clarifies that an employee must be given a fair and reasonable opportunity to respond to allegations before dismissal—reinforcing a move away from overly formal or adversarial processes. Furthermore, a new three-month probationary period is proposed, during which new employees will have limited protection from unfair dismissal. The rationale behind this is to reduce hiring risks and encourage job creation, especially for young and inexperienced job seekers. The Nedlac Report, including draft amendment bills and supporting working papers, has been submitted to Employment and Labour Minister Nomakhosazana Meth. The next steps include review by the State Law Adviser, followed by submission to Cabinet and then Parliament. Once tabled, the proposed laws will be subjected to the full legislative process, including public participation and potential revisions. Notably, not all proposals received unanimous support from Nedlac’s social partners. This means further negotiation and refinement may occur during parliamentary deliberations. While some future-facing issues—like remote work, climate-related heat stress, and just transition policies—have not yet resulted in specific legislative proposals, working papers on these matters have been developed and may inform future reforms. Sources: Engineering News  |  Business Live  |  BizCommunity

Understanding employer rights in South Africa

By Jessie Taylor The South African labour law ensures that employers and employees clearly understand their rights and responsibilities in the workplace. While much attention is often given to employee rights, it is equally important to acknowledge the rights of employers.  These rights are designed to create a balanced, fair, and legally compliant work environment. Employer rights are outlined in South Africa’s labour legislation, which maps out how employers can protect their interests while complying with labour laws. Employers in South Africa are entitled to specific rights that help maintain workplace order and productivity. These include expecting employees to render agreed services during designated working hours and enforcing workplace rules and performance standards. Employers can also expect employees to follow lawful and reasonable instructions and maintain a disciplined and professional work environment.  Employers can also expect employees to act in good faith and with loyalty to the employer, and are allowed to hold employees accountable for product specifications and quality standards. There are several other key rights that employers enjoy: 1. Employer’s right to determine job roles One of the fundamental rights of an employer is the ability to define job roles and responsibilities. Employers have the right to determine the criteria for hiring employees, provided that they do not engage in discriminatory practices based on age, race, gender, disability, or other protected characteristics. Additionally, employers are entitled to establish the specific responsibilities associated with each role and set performance expectations. This helps to ensure that employees understand their duties and can be held accountable for their work performance. 2. Right to establish workplace policies and procedures Employers have the right to create and enforce workplace policies and procedures that govern employee conduct and business operations. These policies may cover a wide range of areas, including: By clearly outlining expectations, employers can maintain a structured and professional work environment. However, these policies must be fair, reasonable, and in line with labour laws. 3. Right to provide and monitor work equipment When employees are provided with company-owned equipment, such as laptops, mobile phones, or other tools necessary for their job, the employer retains ownership of these assets. Employers have the right to monitor how these resources are used, ensuring they are being used strictly for business purposes. Employers may also implement policies that regulate internet usage on company networks, restrict access to certain websites, and track browsing history. These measures help protect company data and ensure productivity. 4. Right to expect honesty and commitment to business objectives Employers have the right to expect employees to act with integrity and work towards achieving business objectives. Employees should conduct themselves ethically, remain transparent in their tasks, and contribute positively to the company’s overall success. Employees who engage in dishonest behaviour, including fraud or theft, breach their employment contract and may face legal consequences. Employers should implement clear policies outlining expectations regarding honesty and ethical behaviour. 5. Right to maintain proper employment records Employers have the right—and responsibility—to maintain comprehensive employment records. These records may include: Keeping accurate records helps employers demonstrate compliance with labour laws, resolve disputes effectively, and manage employee performance in an informed manner. Although the legal system does not currently recognise unfair labour practices against employers in the same way it does for employees, there are several strategies employers can implement to safeguard their rights: While South African labour laws primarily focus on employee rights, employers also have critical rights that enable them to manage their businesses effectively. Understanding and exercising these rights within the framework of labour laws ensures that employers can operate fairly while maintaining compliance. Employers can navigate workplace challenges effectively and foster a balanced, legally compliant work environment by implementing strategic policies, training management teams, and staying informed about labour regulations. Sources: Labour Guide  |  SME South Africa

Video and audio surveillance in the workplace

By Jessie Taylor A balance of rights Video and audio surveillance in the workplace is an increasingly common practice used by employers to monitor employee behaviour, ensure security, and prevent misconduct. However, while surveillance can be a useful tool, it also raises important legal and ethical considerations. Employers must balance their need to protect company interests with their employees’ rights to privacy. Employers often face challenges when proving employee misconduct at the Commission for Conciliation, Mediation and Arbitration (CCMA) and bargaining councils. The burden of proof lies entirely on the employer to establish that a dismissal was fair. Many employers rely on video evidence to strengthen their cases, believing that visual proof of wrongdoing, such as theft, guarantees a favourable ruling. However, this is not always the case. While the CCMA and courts have accepted video evidence in certain cases, there have been instances where such evidence was rejected. Factors that influence the admissibility of video evidence include: While video evidence can be useful, it is not automatically admissible. Employers must ensure compliance with evidentiary and privacy laws to use surveillance footage effectively. In South Africa, workplace surveillance is subject to various legal provisions, including: Employers must inform employees of surveillance measures and ensure that monitoring does not infringe on their rights. Failure to comply with these legal requirements may render surveillance footage inadmissible in legal proceedings and expose employers to legal action. Employers do have certain obligations when installing surveillance in the workplace. While employers have the right to implement surveillance, recourse is available to employees who feel their rights have been violated. Video and audio surveillance can be a powerful tool for employers, but it must be used responsibly and within the boundaries of the law. Employers should prioritize transparency, compliance, and fairness when implementing surveillance systems to avoid legal disputes and maintain a positive workplace environment.  On the other hand, employees should be aware of their rights and take action if they feel their privacy is being infringed upon. A well-balanced approach ensures that workplace surveillance serves its intended purpose without undermining trust and employee well-being. Sources: Labour Guide  |  Legal Leaders