BUSINESS EDGE MARCH 2025
This newsletter highlights the latest statutory amendments and ancillary developments relevant to the SERR Synergy legal compliance products and services. It aims to keep businesses informed of key regulatory changes to ensure ongoing compliance and mitigate legal risks.
- FROM THE DIRECTOR’S DESK
- EMPLOYMENT EQUITY
We are fortunate to celebrate the start of yet another year with new opportunities. It remains SERR Synergy’s mission to add value to businesses, and we hope that 2025 will be a year of renewed business success for all our current and prospective clients.
The economic outlook for 2025 seems generally more positive than the previous year, with reduced levels of loadshedding and the establishment of the Government of National Unity (GNU). The country’s expected economic growth rate of over 1% is an improvement on the -1% recorded for 2024. It is predicted that this upward trajectory in economic growth will continue in the ensuing years.
As enterprises grow, the demand for sound professional advice increases. SERR Synergy’s vision is to be a professional partner in the business endeavours of all our clients. Our team of professional advisors will ensure that clients receive the most recent and cost-effective solutions tailored to the unique needs of each client’s business. We are geared towards ensuring legal compliance at all levels of our clients’ businesses.
This newsletter highlights the latest statutory amendments and ancillary developments relevant to the SERR Synergy legal compliance products and services.
Gideon Gerber | Director
The amended (new) Employment Equity Act (EEA) (Act No. 4 of 2022) became effective on 1 January 2025.
Some of the most notable amendments to the EEA are the following:
- The threshold for designated employers has been changed and now only applies to those employers employing 50 and more employees;
- The introduction of sectoral numerical targets for 18 industries which are presently still in draft format; and
- The issuing of certificates by the Minister of Employment and Labour to certify compliance with the Act and sectoral targets set by the Minister as prerequisite for doing business with the state.
- However, although the definition and criteria for designated employers have been amended to exclude smaller enterprises which employ fewer than 50 employees, the EEA still imposes substantial obligations on all employers (non-designated and designated) in respect of, among others, anti-discrimination assessments and alignment of Human Resource (HR) policies with the Act.
Non-designated employers should not be drawn into a false sense of security in the belief that they no longer have any obligation in terms of the EEA. The EEA provides for hefty fines for non-compliance by non-designated and designated employers alike.
SERR Synergy will keep businesses informed about these and other compliance requirements. We have published a number of articles in this regard, for ease of reference you can access these with the following links: Amended Employment Equity Act: Compliance requirements for designated and non-designated employers and Employer duties imposed by the EEA and sanctions for non-compliance.
We also encourage you to visit our Blog page for more articles.
The Department of Employment and Labour published a Notice for employers on 7 February 2025 setting out the timeframe and procedures for the annual submission of the Return of Earnings (ROE) as follows:
- The 2024 assessment period will be open from 1 April 2025 to 30 June 2025;
- ROEs are to be submitted via the Department of Employment and Labour’s ROE Online System Platform;
- A penalty of 10% will be charged for ROEs submitted after the prescribed deadline;
- Interest will be charged on accounts not paid within 30 days of the invoice date and on overdue accounts;
- Lastly, the Compensation Fund must be notified within 7 days of any change in particulars pertaining to the date of cessation of a business and the nature, physical address and/or contact information of a business.
National Minimum Wage for 2025
The new National Minimum Wage (NMW) of R28,79 for each ordinary hour worked shall take effect from 1 March 2025. The amended wage includes domestic workers and farm workers. Workers employed on expanded public works programmes are entitled to a minimum wage of R15,83 per hour. Learnership allowances and sectoral determinations for the Contract Cleaning Sector and Wholesale and Retail Sector have also been amended and published in Government Gazette No. 52053 dated 4 February 2025.
Draft Code of Good Practice on Dismissal
The Minister of Employment and Labour has published a Draft Code of Good Practice on Dismissal for public comment by 22 March 2025. The purpose of the code is to provide employers, employees, trade unions and individuals with guidance on the legal obligations under the Act (Labour Relations Act, 1995 (Act No. 66 of 1995) regarding dismissals for misconduct, incapacity and operational requirements.
Exemption Permit Holders
The Minister of Home Affairs extended the validity of Zimbabwean Exemption Permits (ZEP) and Lesotho Exemption Permits (LEP) until 28 November 2025.
Registration and deregistration of Trade Unions
The Department of Employment and Labour announced the registration of several trade unions and cancelled the registration of multiple other trade unions. The cancellation means that these organisations are removed from the Register of Trade Unions.
| Trade Union | Registration date of Trade Union | Cancellation date of Trade Union's registration |
|---|---|---|
|
Justice for All Workers of South Africa |
6 December 2024 |
|
|
v-Federal Sectors Workers and Allied Independent Trade Union |
31 October 2024 |
|
| Meat and Allied Workers Union |
23 October 2024 |
|
|
Metal Building and General Workers Union of South Africa |
23 October 2024 |
|
|
South African Democratic Nurses Union |
11 October 2024 |
|
|
Amalungelo Workers Union |
9 October 2024 |
|
|
Progressive Socialist Workers Union of South Africa |
7 October 2024 |
|
|
The United Democratic Food and Combined Workers Union |
7 October 2024 |
|
|
United Workers Front |
7 October 2024 |
Bargaining Council Collective Agreement developments
Listed below are the Bargaining Council Collective Agreements that have been extended to Non-Parties:
|
Bargaining Council Collective Agreements
|
Extended date of the Collective Agreements to Non-Parties |
|---|---|
|
The Main Amending Collective Agreement of the National Bargaining Council for the Clothing Manufacturing Industry
|
31 August 2026 |
|
The Footwear Sector Amending Collective Agreement of the National Bargaining Council of the Leather Industry of South Africa
|
30 June 2026 |
|
The General Goods and Handbag Sector Amending Collective Agreement of the National Bargaining Council of the Leather Industry of South Africa
|
30 June 2026 |
|
The Agency Shop Amending Collective Agreement for Employees of the National Bargaining Council of the Leather Industry of South Africa
|
30 June 2027 |
|
The Tanning Section Collective Amending Agreement of the National Bargaining Council of the Leather Industry of South Africa
|
30 June 2026 |
|
The Main Collective Agreement of the Furniture Bargaining Council
|
30 April 2028 |
|
The Amending Main Collective Agreement and the Amending Administrative Collective Agreement of the Motor Industry Bargaining Council
|
31 August 2025 |
|
The Main Collective Amending Agreement of the Bargaining Council for the Furniture Manufacturing Industry KwaZulu-Natal
|
30 June 2027 |
|
The Glass Sector Collective Agreement of the National Bargaining Council for the Chemical Industry
|
30 June 2025 |
|
The Amending Collective Agreement of the Bargaining Council for the Fishing Industry
|
31 December 2026 |
|
The Main Amending Collective Agreement of the National Bargaining Council for the Hairdressing Cosmetology Beauty and Skincare Industry
|
31 December 2025 |
The extension to Non-Parties of the various Bargaining Councils’ Collective Agreements means that other employers and employees working in the same or a similar industry are also bound by the provisions of the applicable Collective Agreement until the date specified in the Government Gazette.
For ease of reference, please find below a summary with links to our recently published blogs:
- EMPLOYER DUTIES IMPOSED BY THE EEA AND SANCTIONS FOR NON-COMPLIANCE
- AMENDED EMPLOYMENT EQUITY ACT: COMPLIANCE REQUIREMENTS FOR DESIGNATED AND NON-DESIGNATED EMPLOYERS (BY GIDEON GERBER)
- PREGNANCY IN THE WORKPLACE: NAVIGATING CHALLENGES IN HEALTH AND SAFETY ROLES
- BREAKING NEWS FOR THE LEGAL SECTOR: KEY UPDATES ON THE LEGAL SECTOR B-BBEE CODE IMPLEMENTATION
- FOOD SAFETY – THIRD-PARTY FOOD VENDOR REQUIREMENTS
We are committed to providing our clients with the best service at all times and to investigate all possible avenues to improve our service offering to clients to accommodate their individual needs. Please e-mail any suggestions to communications@serr.co.za.
Compiled by:
SERR Synergy Research Division
L. Boshoff – research@serr.co.za