Over the last year or so, the biggest labour-related news has been the proposed amendments to South Africa's labour legislative landscape, by means of the Labour Relations Amendment Bill, Employment Services Bill, Basic Conditions of Employment Amendment Bill and the Employment Equity Amendment Bill.

The Bills generated huge interest and debate amongst employers, employees, service providers in the labour broking industry, and trade unions, as well as attorneys, advisers and economists. This was not only due to the fact that these were the first set of
across-the-board, substantial changes to labour laws since the introduction of the Labour Relations Act in 1996, but also because of the potential impact of these changes on the South African economy. Criticism of the Bills was widespread and by no means
one-sided with both organised labour and business claiming that the Bills failed to address their concerns. Certain detractors even estimated that the introduction of the Bills could lead to the loss of hundreds of thousands of jobs in South Africa.

The Bills were publicised for comment until 17 February 2011 after which the National Economic Development and Labour Council (NEDLAC) was tasked with making final recommendations on the Bills.

It may come as no surprise, but somewhat of a relief, that all four of the proposed amendment Bills have been rejected by NEDLAC, a decision taken at a NEDLAC seminar held on Tuesday 28 June 2011, some four months after NEDLAC first considered the Bills.

The reasons given by NEDLAC for rejecting the Bills were that each of the Bills was badly drafted and, if implemented, could negatively affect business as well as investment in South Africa. Given that these Bills potentially provided for, inter alia, a complete ban on labour broking as well as excessive fines, penalties and, in certain instances, imprisonment for failure to comply, the passing of the Bills without extensive change could have had a massively restrictive influence on South African business as a whole and the labour broking industry in particular in addition to increasing the already heavy regulatory burden on employers.

NEDLAC has indicated that it will form a collaborative task team to re-draft each of the four Bills and that it should be in a position to circulate the re-drafted Bills by November 2011, almost a year after the original four Bills were released for comment. Whether the new drafts will merely clarify drafting problems that existed in the original versions or will also address substantive issues such as the possible ban imposed on the labour broking industry, is not clear. Either way, the publication of the new Bills will be anticipated with great interest and possibly some trepidation.

Contact at Werksmans Attorneys:

Anastasia Vatalidis, Director and
Practice Area Head
Direct line: +27 (0) 11 535 8472
Email: avatalidis@werksmans.com

Bradley Workman-Davies, Director
Direct line: +27 (0) 11 535 8315
Email: bworkman@werksmans.com

Grant Marinus, Director
Direct line: +27 (0)21 405 5285
Email: gmarinus@werksmans.com

Jacques Van Wyk, Director
Direct line: +27 (0)21 405 5142
Email: jvanwyk@werksmans.com

Sandile July, Director
Direct line: +27 (0)11 535 8163
Email: sjuly@werksmans.com