Warning on impact of new labour bills

Business in South Africa needs to be cognisant of the changes in four Labour Bills as they will have major impact on cost, said Prof Hugo Pienaar of Glyn Marais Attorneys. “The four draft Amendment Bills were tabled on December 17 last year and are currently before Nedlac for comment. We expect to see some major changes to them before they will be promulgated but business needs to take the changes and amendments into account.” The four Bills – the Labour Relations Amendment Bill, the Basic Conditions of Employment Amendment Bill, the Employment Equity Amendment Bill and the Employment Services Amendment Bill – have caused a major outcry already as many fear the amendments to the labour legislation will have disastrous consequences for employment in the country. “According to the amendments as they currently stand, all workers will be deemed permanent unless the employer can justify their employment on a fixed-term contract, while there will also be far wider definitions of who is an employee within a company,” said Prof Pienaar. “The laws also call for employers to contribute benefits equal to those offered to permanent employees to all its fixed-term contractors as well as equal pay for work of equal value – so there will be no distinction for experience, tenure or qualifications.