On 26th March, Adcorp Group hosted an exclusive Breakfast in partnership with John Botha, Director at Global Business Solutions. The event provided an in-depth discussion on South Africa’s evolving labour laws, workforce strategies, and the amended Code of Good Practice on Dismissal—exploring its impact on businesses and compliance requirements.
Understanding South Africa’s Changing Labour Landscape
The growing influence of Gen Z and Millennials in the workforce is reshaping expectations, with these generations demanding more flexibility, work-life balance, and values-driven organisations. As businesses adapt to their preferences for autonomy, career development, and inclusive cultures, they must also reassess workforce strategies in light of South Africa’s evolving labour laws.
The introduction of the Labour Law Reform and the Code of Good Practice on Dismissal requires companies to reconsider their approaches to dismissals, workforce structuring, and retrenchment, with a focus on flexibility and agility. These regulatory changes are pushing businesses to explore new employment solutions and adjust severance pay structures to remain competitive in a dynamic labour market.
Employers must now assess additional factors when determining terminations, while businesses are encouraged to adopt more flexible models to navigate economic shifts. Changing retrenchment policies are also influencing workforce management strategies, with companies exploring alternative employment solutions to maintain agility. And adjustments to severance pay structures could significantly impact the financial implications of workforce restructuring.
Employment Equity Compliance and Its Impact
Employment Equity remains a critical priority, with new regulations reinforcing compliance expectations. From 2026, businesses will be required to obtain an Employment Equity Certificate of Compliance by demonstrating fair employment practices that meet regulatory standards. Companies must also adhere to sectoral workforce requirements, ensuring demographic quotas, particularly in different management levels are met to remain competitive. Failure to comply with these workforce equity goals could result in financial penalties and the loss of government incentives, such as the Automotive Production and Development Programme (APDP2) in the automotive industry.
The Need for Adaptability in the Future of Work
What is clear is that the future of employment is transforming, with regulatory discussions underway to address changes in non-traditional employment structures. Proposed updates may influence worker classifications, compensation models, and benefits, prompting businesses to rethink their approaches. A relevant example cited by John Botha is the growing trend of platform-based work, such as that seen with Uber, which has prompted regulators to rethink how these workers should be classified and compensated.
Globally, shifting economic and technological landscapes highlight the need for adaptability, with automation, market innovation, and past industry failures underscoring the importance of agility. As the future unfolds, businesses must focus on skills development, flexible workforce strategies, and regulatory preparedness to remain resilient and adaptable to shifting conditions.
Emphasising Proactive Adaptation
In summary, John Botha emphasised the importance of proactive adaptation in navigating regulatory and economic shifts. Workforce agility, legal compliance, and strategic TES partnerships can mitigate risks and ensure long-term business sustainability. As South Africa’s labour landscape continues to evolve, businesses must replace a “what if” mindset with an “even if” approach, ensuring resilience as they face ongoing changes.
For more information, visit Adcorp Group’s website.
Adcorp Guest Writer
