By Carole Ratcliffe, Managing Executive at Quest by Adcorp
Labour laws affect every business, even if most organisations don’t spend their days tracking every legal change. When legislation shifts, the impact can be felt across hiring decisions, employment contracts, and how companies manage flexible workers and plan their workforce.
South Africa may soon see one of the most significant labour law updates in decades. Proposed amendments to the Basic Conditions of Employment Act (BCEA) and the Labour Relations Act (LRA), currently open for public comment until 28 March 2026, aim to modernise the country’s labour framework to better reflect how people work today.
With many industries relying on flexible staffing, contract workers and platform-based work, the reforms seek to introduce clearer rules around these arrangements while strengthening protections for workers.
Key changes businesses should be aware of
Several proposals within the amendments could have a meaningful impact on employers. Among the most notable are:
• Higher severance pay
Severance pay could increase from one week to two weeks per completed year of service. For businesses, particularly those operating in industries with fluctuating demand, this could influence retrenchment planning and workforce cost modelling.
• A broader definition of “employee”
The legislation may extend certain labour protections to workers currently classified as independent contractors, including some gig or platform workers. This could require companies to reassess how these workers are classified and managed.
• Regulation of on-call and zero-hour work
For the first time, these work arrangements may be formally regulated. Employers may need to introduce clearer agreements covering:
- expected availability
- minimum guaranteed pay
- compensation for cancelled or shortened shifts
This is particularly relevant for sectors such as retail, hospitality and logistics where flexible scheduling is common.
• Updates to parental leave provisions
The amendments also align with broader efforts to modernise parental leave in South Africa, recognising a wider range of family structures and caregiving arrangements.
From legislation to real workplace impact
While the proposed changes aim to create greater fairness and clarity in the labour market, they also introduce new responsibilities for employers.
For many organisations, the challenge will be translating the rules into practical workplace policies. Contracts may need updating, workforce structures may need reviewing and HR teams may need to rethink how certain roles are structured.
This is where experienced workforce partners can play an important role.
Temporary employment services (TES) providers have long worked at the intersection of workforce flexibility and compliance. As labour legislation evolves, many businesses rely on these partners to help interpret regulatory changes and ensure staffing models remain aligned with the law.
At Quest by Adcorp, supporting clients through periods of change is a core part of what we do. Labour law reforms can create uncertainty, particularly when organisations are trying to understand how new legislation might affect their existing workforce strategies.
In practice, this support may include helping businesses:
- review workforce structures and staffing models
- reassess contractor and employee classifications
- update contracts and employment policies
- ensure scheduling practices meet emerging legal requirements
- navigate industrial relations processes where needed
The goal is not only compliance but continuity, ensuring that businesses can adapt without disrupting their operations.
Preparing for the future of work
These proposed amendments reflect a broader shift taking place across labour markets worldwide. As new forms of work emerge, governments are updating legislation to balance two important priorities, protecting workers while allowing businesses the flexibility they need to operate in a changing economy.
For employers, preparation will be key. Organisations that start reviewing their workforce strategies early will be better positioned to adapt when the legislation eventually takes effect.
South Africa’s world of work keeps growing and the legal framework that supports it is growing too. With thoughtful planning and the right expertise, businesses can navigate these changes confidently while continuing to build resilient and future-ready organisations.