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Question 1
Key legislative developments and their impact on employment
The workplace is a dynamic environment. Employers are constantly adapting to keep up to date with
changes to employment laws and developing workplace trends, as well as demands and expectations of
the workforce. Some of the key legislative developments in the South African employment law field
that are on the cards, as well as emerging workplace trends that are likely to continue into 2024 and
beyond are summarised in this article.
Increased focus on employment equity compliance
Amendments to the Employment Equity Act 55 of 1998 (EEA) have been passed into law and are
anticipated to come into force in 2024. Among other things, the amendments empower the Minister of
Employment and Labour to identify national economic sectors and to determine numerical targets for
demographic representivity in the workplaces of ‘designated employers’ in these sectors. The
amendments, and particularly the draft regulations published in May 2023, have been the subject of
much controversy and legal challenge. Nevertheless, with the amendments expected to be in full force
by 2024, employers, particularly ‘designated employers’, will need to ensure that they take proactive
steps to comply with the amended provisions of the EEA.
Introduction of statutory remuneration disclosure requirements
The long-awaited amendments to the Companies Act 71 of 2008 have been introduced in Parliament.
Among other things, the Companies Amendment Bills, 2023 propose that public and state-owned
companies be required to prepare a remuneration report, consisting of a remuneration policy, an
implementation report with details on the remuneration and benefits paid to directors and prescribed
officers, as well as remuneration details of the highest and lowest paid employees, the average and
median remuneration of all employees and an indication of the pay gap between the top 5% highest
paid and bottom 5% lowest paid employees.
We anticipate the amendments to make their way through the parliamentary process and be
promulgated by mid-2024.
A new approach to parenting leave
Following a ground-breaking judgment in the High Court on 25 October 2023, which found the
maternity, adoption, commissioning parental and parental leave provisions in the Basic Conditions of
Employment Act 74 of 1997 (and the corresponding provisions of the Unemployment Insurance Act
63 of 2001) unconstitutional, a new approach to parenting leave is on the horizon. The judge found
that the provisions unfairly discriminate between mothers and fathers; and between one set of parents
and another based on whether their children were born of the mother, conceived by surrogacy, or
adopted. The Court suspended the declaration of invalidity for two years to allow Parliament an
opportunity to cure the defects. In the interim, it read in amendments to the sections effectively to
allow parents ‘of whatever the stripe’ to enjoy four consecutive months’ parental leave collectively.
This declaration of invalidity still needs to be confirmed by the Constitutional Court before it will have
any force and effect and we anticipate this hearing to take place in about the third quarter of 2024. In
the meantime, while there are no immediate changes to the legal position, employees’ thinking around
parental leave and traditional caregiving roles will likely be changing and employers will need to
