Labour Law Changes 2025: Focus on Small Business

Labour Law Relief for Small Businesses

Focus on Small Businesses

The new code includes a dedicated section (Part A) with specific provisions to accommodate the practical realities of small businesses, including less formal procedures while still requiring fairness and documentation.

It states that Small Businesses should not be required to comply with obligations that are not practical or feasible for their operation.

When determining if a small business operated fairly when dismissing, the unique circumstances in which they operate should be taken into consideration.

For example, small businesses cannot reasonably be expected to engage in time-consuming investigations and pre-dismissal processes, while at the same time keeping the business going.

The new code brings attention to the fact that small businesses may not have an HR Department, staffed with people with the skills and experience in dismissals, and this should be taken into account when determining fairness.

Download a copy of the New Code of good conduct on Dismissals 040925 here.

The information on this blog is for general informational purposes only and does not constitute legal advice. It is not a substitute for professional legal counsel, and you should consult with a qualified legal professional for advice tailored to your specific situation.

Know Your Rights: Calculation of salaries & wages

How much should I be remunerating my Employees?

(1)  An employee’s wage is calculated by reference to the number of hours the employee ordinarily works.

 

(2)  For the purposes of calculating the wage of an employee by time, an employee is deemed ordinarily to work:

(a) 45 hours in a week, unless the employee ordinarily works a lesser number of hours in a week;

(b) nine hours in a day, or seven and a half hours in the case of an employee who works for more than five days a week, or the number of hours that an employee works in a day in terms of an agreement concluded in accordance with section 11, unless the employee ordinarily works a lesser number of hours in a day.

 

(3)  An employee’s monthly remuneration or wage is four and one­ third times the employee’s weekly remuneration or wage, respectively.

 

(4)  If an employee’s remuneration or wage is calculated, either wholly or in part, on a basis other than time or if an employee’s remuneration or wage fluctuates significantly from period to period, any payment to that employee in terms of this Act must be calculated by reference to the employee’s remuneration or wage during:

(a) the preceding 13 weeks; or

(b) if the employee has been in employment for a shorter period, that period.

 

(5)  (a)  The Minister may by notice in the Gazette, after consultation with the Commission and NEDLAC, determine whether a particular category of payment, whether in money or in kind, forms part of an employee’s remuneration for the purpose of any calculation made in terms of this Act.

(b)  Without limiting the Minister’s powers in terms of paragraph (a), the Minister may—

(i) determine the value, or a formula for determining the value, of any payment that forms part of remuneration;

(ii) place a maximum or minimum value on any payment that forms part of remuneration; and

(iii) for the purposes of any calculation, differentiate between different categories of payment and different sectors.

(c)  Before the Minister issues a notice in terms of paragraph (a), the Minister must—

(i) publish a draft of the proposed notice in the Gazette; and

(ii) invite interested parties to submit written representations on the draft notice within a reasonable period.

 

The New Code of Practice: Dismissals

The new Code of Good Practice on Dismissal came into effect in South Africa on 4 September 2025, replacing previous codes and unifying dismissal procedures for misconduct, incapacity, and operational requirements into a single framework.

This updated code aims for a more practical, streamlined process, offering increased flexibility for small businesses while maintaining protections for employees.

Key changes include a new dedicated small business section and the consolidation of previously separate guidelines for dismissal categories into one unified document.

Purpose & Interpretation

Instead of separate codes for misconduct, incapacity, and operational requirements (retrenchment), all are now governed by a single, integrated Code of Good Practice.

Its purpose is to provide guidance to employers, employees, trade unions, and persons applying the code on their legal obligations.

The code is intentionally general, acknowledging that each case is unique.

The code now acknowledges that different approaches to dismissals may be warranted, in different environments.  An example would be large companies, to companies that employ only one or two people.

The key principle behind the Code of Practice on Dismissals is Employers and Employees should treat one another with mutual respect.  The code places a premium on:

  • Employment justice
  • Efficient operation of the employer’s business
  • Speedy resolution of disputes.

It acknowledges that while employees should be protected, employers are entitled to satisfactory and work performance by their employees.

The new code aims to be easier to understand, using more common terms like “retrenchment” over “dismissal for operational requirements”.

Download a full copy of the Code here: New Code of good conduct on Dismissals 040925.

The information on this blog is for general informational purposes only and does not constitute legal advice. It is not a substitute for professional legal counsel, and you should consult with a qualified legal professional for advice tailored to your specific situation. 

Know Your Rights: Legally, what should employee personnel files contain?

What employment records must Employers keep, and for how long?

1)  Every employer must keep a record containing at least the following information:

(a) The employee’s name and occupation;

(b) the time worked by each employee;

(c) the remuneration paid to each employee;

(d) the date of birth of any employee under 18 years of age; and

(e) any other prescribed information.

 

(2)  A record in terms of subsection (1) must be kept by the employer for a period of three years from the date of the last entry in the record.

 

(3)  No person may make a false entry in a record maintained in terms of subsection (1).

 

(4)  An employer who keeps a record in terms of this section is not required to keep any other record of time worked and remuneration paid as required by any other employment law.

 

Know Your Rights: Contracts of Employment

Are you giving your Employees all the required details in writing?

(1)  An employer must supply an employee, when the employee commences employment, with the following particulars in writing:

(a) the full name and address of the employer;

(b) the name and occupation of the employee, or a brief description of the work for which the employee is employed;

(c) the place of work, and, where the employee is required or permitted to work at various places, an indication of this;

(d) the date on which the employment began;

(e) the employee’s ordinary hours of work and days of work;

(f) the employee’s wage or the rate and method of calculating wages;

(g) the rate of pay for overtime work;

(h) any other cash payments that the employee is entitled to;

(i) any payment in kind that the employee is entitled to and the value of the payment in kind;

( j) how frequently remuneration will be paid;

(k) any deductions to be made from the employee’s remuneration;

(l) the leave to which the employee is entitled;

(m) the period of notice required to terminate employment, or if employment is for a specified period, the date when employment is to terminate;

(n) a description of any council or sectoral determination which covers the employer’s business;

(o) any period of employment with a previous employer that counts towards the employee’s period of employment;

(p) a list of any other documents that form part of the contract of employment, indicating a place that is reasonably accessible to the employee where a copy of each may be obtained.

 

(2)  When any matter listed in subsection (1) changes:

(a) the written particulars must be revised to reflect the change; and

(b) the employee must be supplied with a copy of the document reflecting the change.

 

(3)  If an employee is not able to understand the written particulars, the employer must ensure that they are explained to the employee in a language and in a manner that the employee understands.

 

(4)  Written particulars in terms of this section must be kept by the employer for a period of three years after the termination of employment.

Download your free template here: Sample – Employment Contract

Know Your Rights: Lunch Breaks

How many meal intervals should Employees be given?

1)  An employer must give an employee who works continuously for more than five hours a meal interval of at least one continuous hour.

 

(2)  During a meal interval the employee may be required or permitted to perform only duties that cannot be left unattended and cannot be performed by another employee.

 

(3)  An employee must be remunerated—

(a) for a meal interval in which the employee is required to work or is required to be available for work; and

(b) for any portion of a meal interval that is in excess of 75 minutes, unless the employee lives on the premises at which the work­place is situated.

 

(4)  For the purposes of subsection (1), work is continuous unless it is interrupted by an interval of at least 60 minutes.

 

(5)  An agreement in writing may—

(a) reduce the meal interval to not less than 30 minutes;

(b) dispense with a meal interval for an employee who works fewer than six hours on a day.

Know Your Rights: Public Holidays

How Do I Pay My Staff For Public Holidays?

(1) An employer may not require an employee to work on a public holiday except in accordance with an agreement.

 

(2) If a public holiday falls on a day on which an employee would ordinarily work, an employer must pay:

(a) an employee who does not work on the public holiday, at least the wage that the employee would ordinarily have received for work on that day;

(b) an employee who does work on the public holiday:

(i) at least double the amount referred to in paragraph (a); or

(ii) if it is greater, the amount referred to in paragraph (a) plus the amount earned by the employee

for the time worked on that day.

 

(3)  If an employee works on a public holiday on which the employee would not ordinarily work, the employer must pay that employee an amount equal to:

(a) the employee’s ordinary daily wage; plus

(b) the amount earned by the employee for the work performed that day, whether calculated by reference to time worked or any other method.

 

(4)  An employer must pay an employee for a public holiday on the employee’s usual pay day.

 

(5)  If a shift worked by an employee falls on a public holiday and another day, the whole shift is deemed to have been worked on the public holiday, but if the greater portion of the shift was worked on the other day, the whole shift is deemed to have been worked on the other day.

https://2r.co.za/public-holiday-pay-2/

With a public holiday coming up next week Wednesday, this is a very topical question!

  1. Do temporary workers get paid the public holiday?
  2. Can you force staff to work the public holiday?
  3. Can you swop Monday off, instead of Tuesday?
  4. Visit our website to find these answers and more!

https://2r.co.za/public-holiday-pay-2/

Know Your Rights: How is overtime calculated?

How should I be calculating my Employees Overtime?

(1)  Subject to this Chapter, an employer may not require or permit an employee to work—

(a) overtime except in accordance with an agreement;

(b) more than ten hours’ overtime a week.

[Sub­s. (1) substituted by s. 3 (a) of Act No. 11 of 2002.]

(1A)  An agreement in terms of subsection (1) may not require or permit an employee to work more than 12

hours on any day.

[Sub­s. (1A) inserted by s. 3 (b) of Act No. 11 of 2002.]

 

(2)  An employer must pay an employee at least one and one­ half times the employee’s wage for overtime worked.

 

(3)  Despite subsection (2), an agreement may provide for an employer to—

(a) pay an employee not less than the employee’s ordinary wage for overtime worked and grant the employee at least 30 minutes’ time off on full pay for every hour of overtime worked; or

(b) grant an employee at least 90 minutes’ paid time off for each hour of overtime worked.

 

(4)  (a)  An employer must grant paid time off in terms of subsection (3) within one month of the employee becoming entitled to it.

(b)  An agreement in writing may increase the period contemplated by paragraph (a) to 12 months.

 

(5)  An agreement concluded in terms of subsection (1) with an employee when the employee commences employment, or during the first three months of employment, lapses after one year.

 

(6)  (a)  A collective agreement may increase the maximum permitted overtime to 15 hours a week.

(b)  A collective agreement contemplated in paragraph (a) may not apply for more than two months in any

period of 12 months.

[Sub­s. (6) added by s. 3 (c) of Act No. 11 of 2002.]

Avoid These Top 5 Mistakes When Registering on Job Portals

Avoid These Top 5 Mistakes When Registering on Job Portals

Avoid These Top 5 Mistakes When

Registering your CV on Job Portals

 

In today’s competitive job market, job seekers often turn to online job portals as a primary tool in their search for employment. While these platforms can be incredibly useful, there are common mistakes that many job seekers make during the registration process that can hinder their chances of success. To help you out, here are the top 5 mistakes to avoid:

 

  1. Incomplete Profiles: One of the biggest mistakes job seekers make is not filling out their profiles completely. Employers often use search filters to find suitable candidates, so having an incomplete profile could mean you’re missing out on potential opportunities. It can be time consuming, especially if your internet connection is slow, but you only have to do it once, so to it fully and completely.

 

  1. Using an Inappropriate Email Address: Your email address is often the first impression a potential employer will have of you. Using unprofessional email addresses (like “partylover123@example.com”) can give off the wrong impression. Stick to a simple and professional email address with your full name if possible.

 

  1. Ignoring Keywords: Many job portals use algorithms to match candidates with job postings. Make sure your profile and resume contain relevant keywords related to your industry and the positions you’re interested in to increase your chances of being found. Key words would include technical terms, computer software systems, and skills. (Read more about Key Words here)

 

  1. Applying to Every Job: While it can be tempting to apply to as many jobs as possible, it’s essential to tailor your applications to each position. Sending out generic applications may come across as disingenuous and could harm your chances of standing out to recruiters.

 

  1. Neglecting to Network: Job portals are a valuable resource, but networking is equally important in the job search process. Connect with professionals in your industry, attend job fairs, and engage with relevant online communities to expand your opportunities beyond what job portals can offer.

 

By avoiding these common mistakes, you can enhance your online presence, increase your chances of being noticed by employers, and ultimately find success in your job search. Remember, attention to detail and a strategic approach can go a long way in standing out in today’s competitive job market.

Drafting a Comprehensive Job Description

Drafting a Comprehensive Job Description

When putting together a job description, it’s important to include essential elements that provide clarity for both the hiring organization and prospective candidates. Here’s a comprehensive list of key items to consider:

  1. Job Title

  • A clear, concise title that accurately reflects the role and its level within the organization.

  1. Job Overview/Summary

  • A brief summary of the role and its primary purpose within the organization.
  • Should provide a high-level view of what the job entails and its importance to the company’s goals.

  1. Key Responsibilities and Duties

  • A detailed list of the job’s main responsibilities and tasks.
  • Include both daily tasks and larger, ongoing duties.
  • Use bullet points for clarity and focus on actionable duties.
  • Mention any leadership, team collaboration, or independent work expectations.

  1. Required Qualifications

  • Education: Minimum educational requirements (e.g., high school diploma, bachelor’s degree, etc.).
  • Experience: The required or preferred number of years in the field or a similar role.
  • Skills: Specific technical or soft skills (e.g., software proficiency, communication skills, etc.).
  • Certifications/Licenses: Any certifications or licenses necessary for the role (e.g., PMP, CPA, etc.).

  1. Preferred Qualifications

  • Additional skills, experience, or qualifications that are not mandatory but would be beneficial for candidates to have.
  • This can include specialized skills, industry-specific knowledge, or extra certifications.

  1. Work Environment

  • Specify the type of work environment (e.g., office-based, remote, hybrid, field-based).
  • Mention any travel requirements, physical demands, or unusual work conditions (e.g., shift work, working in specific weather conditions, or with hazardous materials).

  1. Location

  • Where the job is based (city, state, country).
  • Mention if relocation assistance is provided or if the job can be performed remotely.

  1. Salary and Benefits

  • Salary Range: Provide a salary range if possible, or note if it’s competitive, based on experience.
  • Benefits: Include details about health insurance, retirement plans, paid time off, bonuses, stock options, etc.
  • Other Perks: Any unique perks (e.g., flexible hours, wellness programs, professional development opportunities).

  1. Company Overview

  • A short description of the company, including its mission, values, culture, and industry.
  • Highlight any benefits of working with your company (e.g., career growth, company culture, innovation).

  1. Working Hours

  • Clarify the expected working hours (e.g., 9 am to 5 pm, flexible hours).
  • Include information on any overtime or weekend work if required.

  1. Job Type

  • Full-time, part-time, contract, temporary, or internship.
  • If applicable, indicate if the position is permanent or seasonal.

  1. Reporting Structure

  • Indicate who the employee will report to (e.g., direct supervisor, department head).
  • If applicable, include information on the team or department they will be working with.

  1. Career Growth and Development

  • Opportunities for professional development, advancement, or mentorship within the role or company.

  1. Application Process

  • How candidates should apply (e.g., online submission, email).
  • Information about documents to be submitted (resume, cover letter, portfolio).
  • Deadline for applications if applicable.
  • Any next steps or interviews outlined.

  1. Equal Opportunity Statement

  • A statement that the company is an equal opportunity employer (EEO) and encourages candidates from diverse backgrounds to apply.
  • Highlight any diversity and inclusion initiatives or policies in place.

  1. Physical Requirements

  • If the role involves physical tasks (lifting, standing for long periods, etc.), mention these here.
  • Any specific equipment or tools that will be used, and if any special training or certification is required.

  1. Compliance and Legal Information

  • Any relevant legal statements, such as non-compete clauses, background check requirements, or drug testing.

Including these components will ensure that your job description is comprehensive, attractive to potential candidates, and clearly communicates the expectations and opportunities within the role.