Proposed labour law changes could redefine independent contractors
Proposed labour law changes could see gig workers and independent contractors classified as employees. Here's everything we know...
Independent contractors across South Africa, including delivery drivers, ride-hailing operators and courier workers, could soon be legally recognised as employees under sweeping proposed labour law reforms currently open for public comment.
Cabinet has approved the publication of the Labour Laws Amendment Bill, 2025 and the Labour Relations Amendment Bill, 2025, marking what could become one of the most significant changes to labour relations in decades. While the proposals are not yet law, public submissions are being accepted until the end of March.
At the heart of the proposed reforms is a strengthened presumption of employment, which would extend labour protections to workers whose roles are effectively controlled by a company or digital platform.
Who could be affected by the new definition of employment?
The draft amendments shift focus away from job titles or contractual labels and instead examine the reality of a working relationship. Individuals who are integrated into a business or depend on a company as their primary source of income may be classified as employees, regardless of whether they are labelled as independent contractors.
Although the Bills do not introduce a formal legal definition of a gig worker, they redraw the boundaries around who qualifies as an employee.
This change could affect app-based drivers, food delivery riders, freelance platform workers, hospitality shift staff and certain freelancers in the film and television industry. If reclassified, these workers would fall fully under labour legislation protections.
What new rights would workers receive?
Workers classified as employees would gain access to rights traditionally reserved for permanent staff. These include the ability to join trade unions, participate in collective bargaining and take part in protected strike action.
Employers would also be required to provide written contracts to shift-based and on-call workers. These contracts must specify guaranteed working hours, maximum hours and notice periods. If a shift is cancelled without sufficient notice, workers would still be entitled to payment.
For many workers previously treated as flexible labour, the changes represent a substantial shift in workplace security and accountability.
How would employers be affected?
The reforms also introduce measures affecting businesses and employers. Severance pay during retrenchments would increase from one week’s remuneration per completed year of service to two weeks.
At the same time, dismissal procedures would become more flexible. Employees could be dismissed without a formal hearing during the first three months of employment or throughout probation, whichever period is shorter.
Disciplinary processes would align with the revised 2025 Code of Good Practice on Dismissal, simplifying procedures in cases involving incapacity or misconduct.
Compensation for unfair dismissal claims by high earners would be capped at R1.8 million.
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Support measures for small businesses
Newly established small businesses would receive temporary relief from bargaining council agreements during their first two years of operation. The exemption is intended to reduce regulatory pressure on start-ups while they establish themselves.
Balancing worker protection and business flexibility
According to Cabinet, the proposed amendments aim to modernise South Africa’s labour framework by strengthening enforcement and extending protections to vulnerable workers while maintaining operational flexibility for employers.
In its statement, Cabinet said the proposals seek to strike an appropriate balance between increased flexibility for employers and enhanced protections for workers.
With public consultations underway, the final shape of the legislation will depend on stakeholder input before any changes are enacted into law.
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