South Africa
Changes to compensation for occupational injuries and diseases
Impact date: 23 January 2026: most substantive amendments, (including definitions, reporting procedures and rehabilitation and reintegration framework)
1 February 2026: the governance-related sections relating to restructuring of the Compensation Board, take effect
1 April 2026: the enforcement and penalty provisions, assessment deadlines and interest mechanisms commence Amendments to the Compensation for Occupational Injuries and Diseases Act 10 of 2022 (COIDA) came into effect on 23 January 2026, with the rest of the amendments being implemented on 1 February and 1 April 2026. The COIDA system refers to the no‑fault compensation system which provides compensation and medical support to employees who suffer work‑related injuries, occupational diseases, or death. The COIDA is mainly administered via the Compensation Fund under the Department of Employment and Labour.
The reforms include a shift from criminal offences to administrative penalties, extended prescription periods, expanded employer liability, strengthened inspectorate powers, a broader definition of employees and accidents, and a formalized rehabilitation and return to work regime. Employers who actively participate in the rehabilitation of temporarily disabled employees may now qualify for an assessment rebate.
Employer implications/action needed
- employers must update their COIDA reporting procedures, improve and formalize how incidents are reported, and respond promptly to requests from the Compensation Fund
- employers must retain records relating to injuries and payroll for longer periods, track incidents, and put measures in place to prepare for possible delayed claims
- employers must ensure compliance documents are easily accessible, contractor arrangements must be reviewed, transport policies updated, and rehabilitations and return-to-work programs must be aligned with the Compensation Fund
Employer risk Non-compliance with the COIDA will expose employers to penalties and increased liability.
National Minimum Wage increase
Impact date: 1 March 2026 The National Minimum Wage will increase to R30.23 per hour, applicable to most workers including domestic and farm workers, while Expanded Public Works Programme (EPWP) workers will earn R16.62 per hour. Sector‑specific updates include revised minimum rates for the Contract Cleaning Sector and the Wholesale and Retail Sector.
Employer implications/action needed
- employers must update payroll systems to apply the new statutory minimum rates across all worker categories and ensure sector‑specific wages reflect the revised amounts
- employers must also review all contracts, budgets, and cost structures before 1 March 2026, in order to ensure compliance
Employer risk If employers fail to implement the new rates in compliance with the National Minimum Wage Act, they will expose themselves to penalties and possible claims, or enforcement action by the Department of Employment and Labour.
Earnings threshold increase
Impact date: Effective 1 May 2026
The earnings threshold under the Labour Relations Act, 1995 (“LRA”) and the Basic Conditions of Employment Act, 1997 (“BCEA”), which provides for certain statutory protections (including Temporary Employment Service (TES) deeming provisions, equal treatment obligations and enhanced termination protections), has been increased with effect from 1 May 2026. The new threshold is ZAR 269,600.90 per annum (previously ZAR 254,371.67 per annum).
Employer implications/action needed Employers and suppliers (including TES providers) should update payroll records, employment contracts and compliance frameworks to reflect the new threshold. Any arrangements structured by reference to the previous threshold should be reviewed.
Employer risk Failure to apply the updated threshold correctly may result in misclassification of workers, exposure to deeming provisions under the LRA, and joint and several liability for non-compliance with applicable labour legislation.
Labour Law Amendment Bill 2025
Impact date: Not yet in force. Public comment closed March 2026. Implementation date to be confirmed following parliamentary processes and presidential assent.
On 26 February 2026, the Minister of Employment and Labour published the Labour Law Amendment Bill 2025 for public comment (Government Gazette No. 54220). The Bill proposes amendments to the Basic Conditions of Employment Act 75 of 1997 (“BCEA”), the Labour Relations Act 66 of 1995 (“LRA”), the Employment Equity Act 55 of 1998 (“EEA”), and the National Minimum Wage Act 9 of 2018 (“NWA”). The salient proposed amendments include:
- Section 2 proposes the insertion of section 9B into the BCEA, regulating on-call, zero-hours, and min-max contracts. Employers would be required to record in writing: maximum hours of work; availability periods; and notice periods for requiring employees to report for work or for cancelling work. Where work is cancelled without the requisite notice, the employer must remunerate the employee for the cancelled hours
- Section 5 of the Bill proposes an amendment to section 65(1)(d) of the LRA to permit employees engaged in essential services to undertake protected strike action, provided they comply with the notice requirements in section 72(5) of the LRA. Under the current framework, employees in essential services are prohibited from striking and disputes of mutual interest must be resolved through compulsory arbitration
- Section 37 of the Bill proposes the insertion of section 193(2)(z) into the LRA. Employees earning above a prescribed earnings threshold (to be published by the Minister) would no longer be entitled to reinstatement or re-employment as remedies for ordinary unfair dismissal or unfair labour practices. This limitation would not apply to automatically unfair dismissals under section 187 of the LRA, where reinstatement would remain available regardless of earnings
- an amendment to section 41 of the BCEA to double the statutory minimum severance pay payable on retrenchment (dismissal for operational requirements), from one week's remuneration to two weeks' remuneration for each completed year of continuous service. The amendment is proposed to apply prospectively only, with prior completed service remaining subject to current one-week-per year statutory minimum
Employer implications/action needed Employers must monitor the progress of the Bill. If enacted, employers using on-call or zero-hours arrangements must update written employment particulars and scheduling practices to comply with the notice and record-keeping requirements.
Employer risk Non-compliance with cancellation notice requirements may expose employers to increased labour costs. Employers may face greater operational constraints in scheduling on-call workers and will need to plan staffing needs more accurately.
Contact
© Eversheds Sutherland. All rights reserved. Eversheds Sutherland is a global provider of legal and other services operating through various separate and distinct legal entities. Eversheds Sutherland is the name and brand under which the members of Eversheds Sutherland Limited (Eversheds Sutherland (International) LLP and Eversheds Sutherland (US) LLP) and their respective controlled, managed and affiliated firms and the members of Eversheds Sutherland (Europe) Limited (each an "Eversheds Sutherland Entity" and together the "Eversheds Sutherland Entities") provide legal or other services to clients around the world. Eversheds Sutherland Entities are constituted and regulated in accordance with relevant local regulatory and legal requirements and operate in accordance with their locally registered names. The use of the name Eversheds Sutherland, is for description purposes only and does not imply that the Eversheds Sutherland Entities are in a partnership or are part of a global LLP. The responsibility for the provision of services to the client is defined in the terms of engagement between the instructed firm and the client.