Labour Relations Act – Welman Attorneys Inc. https://www.welmanattorneys.co.za Labour Law Firm Pretoria Wed, 20 May 2026 11:31:21 +0000 en-ZA hourly 1 https://wordpress.org/?v=7.0.2 https://www.welmanattorneys.co.za/wp-content/uploads/2023/02/WelmanBloem-site-icon-logo-04-1-150x150.png Labour Relations Act – Welman Attorneys Inc. https://www.welmanattorneys.co.za 32 32 Earnings Threshold Increases to R269 600.90: A Practical Guide for Employers https://www.welmanattorneys.co.za/blog/earnings-threshold-increases-practical-guide-employers/ Wed, 20 May 2026 11:21:02 +0000 https://www.welmanattorneys.co.za/?p=2221 With the new earnings threshold of R269 600.90 per year now in effect, South African employers face a practical compliance moment. Failing to adjust payroll structures, employment contracts and HR policies to reflect the new threshold can expose businesses to unfair labour practice claims, disputes at the CCMA, and costly Labour Court proceedings. At Welman Attorneys […]

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With the new earnings threshold of R269 600.90 per year now in effect, South African employers face a practical compliance moment.

Failing to adjust payroll structures, employment contracts and HR policies to reflect the new threshold can expose businesses to unfair labour practice claims, disputes at the CCMA, and costly Labour Court proceedings.

At Welman Attorneys Inc, our labour and employment law team works with businesses of all sizes to manage their legal obligations under South African labour legislation. This guide sets out what employers need to do – right now.

Step 1: Identify Affected Employees

The first practical step is to identify employees earning between R261 748.45 and R269 600.90 per year. 

These employees have moved from above to below the threshold and are now newly entitled to the protections of sections 9 to 18 of the BCEA. Payroll departments should conduct a threshold audit immediately to identify affected staff members.

Remember: “earnings” for threshold purposes is regular annual remuneration before deductions, excluding employer contributions to pension or medical aid, subsistence and transport allowances, achievement awards and overtime payments.

Step 2: Review Employment Contracts

Employment contracts that previously excluded BCEA protections on the basis that the employee earned above the threshold may now be inconsistent with the law. 

Welman Attorneys Inc advises employers to review all contracts for employees near the threshold band and to seek legal advice before making any changes.

Critically, where a contract provides benefits – such as overtime pay or Sunday premiums – that go beyond the minimum required by law, those provisions remain binding even if the employee earns above the threshold. Employers may not unilaterally remove contractual entitlements. Any variation must be agreed upon with the employee.

Step 3: Revisit Fixed-Term and TES Arrangements

Two important LRA provisions apply only to employees earning below the threshold:

  • Fixed-term employees: An employee earning below the threshold who is engaged on a fixed-term contract for longer than three months may be deemed to be employed indefinitely, unless there is a justifiable reason for fixing the term (section 198B of the LRA). Source: LRA
  • TES workers: An employee earning below the threshold who is placed by a temporary employment service for more than three months, or who is not merely substituting for a temporarily absent employee, may be deemed a permanent employee of the client (section 198A(3)(b) of the LRA)

Employers using fixed-term or TES arrangements should assess whether newly threshold-captured employees now fall within these provisions, and take steps to regularise such arrangements if necessary.

Step 4: Understand CCMA vs Labour Court Jurisdiction

The threshold also affects where disputes must be adjudicated. Employees earning below the threshold who have monetary claims arising from the BCEA, a contract of employment, a sectoral determination or a collective agreement may refer unresolved conciliation disputes to the CCMA for arbitration. Employees earning above the threshold must take such disputes to the Labour Court.

Similarly, unfair discrimination disputes under Chapter II of the EEA (other than sexual harassment claims) may only be arbitrated at the CCMA if the claimant earns below the threshold. Above-threshold employees must litigate in the Labour Court. 

Step 5: Seek Expert Legal Advice

The earnings threshold touches every facet of employment law. Non-compliance carries real risk: claims for underpaid overtime, reinstatement of employees incorrectly classified as fixed-term workers, and costly Labour Court litigation are all potential consequences.

Proactive legal advice is always less expensive than reactive litigation.

Welman Attorneys Inc provides comprehensive labour and employment law services to employers across South Africa, including:

  • Threshold compliance audits and payroll reviews
  • Drafting and updating employment contracts and HR policies
  • Advice on fixed-term and TES worker classifications
  • Representation at the CCMA and the Labour Court
  • Proactive training and workshops for HR and management teams

Contact Welman Attorneys Inc today to schedule a consultation with one of our experienced labour lawyers. We are here to ensure your business remains compliant, your employees are treated fairly, and your interests are protected

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]]> South Africa’s New Earnings Threshold: What Every Employer and Employee Needs to Know https://www.welmanattorneys.co.za/blog/south-africas-new-earnings-threshold/ Mon, 18 May 2026 10:58:26 +0000 https://www.welmanattorneys.co.za/?p=2214 The South African Minister of Employment and Labour has announced an increase in the annual earnings threshold, effective 1 May 2026. The new threshold is set at R269 600.90 per year (R22 466.74 per month), representing an increase of R7 852.45 – or 3% – from the previous threshold of R261 748.45 that has been in place since 1 […]

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The South African Minister of Employment and Labour has announced an increase in the annual earnings threshold, effective 1 May 2026.

The new threshold is set at R269 600.90 per year (R22 466.74 per month), representing an increase of R7 852.45 – or 3% – from the previous threshold of R261 748.45 that has been in place since 1 April 2025.

At Welman Attorneys Inc, our specialist labour law team advises employers and employees across South Africa on how legislative changes such as this one affect their rights and obligations. Here is what you need to know.

What Is the Earnings Threshold?

The earnings threshold is a monetary benchmark, determined periodically by the Minister of Employment and Labour under the Basic Conditions of Employment Act 75 of 1997 (“BCEA”).

Employees who earn above this threshold are excluded from the protection of certain key provisions of the BCEA, the Labour Relations Act 66 of 1995 (“LRA”) and the Employment Equity Act 55 of 1998 (“EEA”).

For purposes of the threshold, “earnings” means an employee’s regular annual remuneration before the deduction of income tax, pension fund contributions, medical aid contributions and similar payments. Importantly, subsistence and transport allowances, achievement awards and overtime payments are excluded from the calculation.

Which Employees Are Newly Protected?

Employees who currently earn between R261 748.45 and R269 600.90 per year will, from 1 May 2026, be entitled to the full suite of protections previously unavailable to them.

This includes the right to overtime pay, double pay for work on Sundays and public holidays, regulated meal intervals and rest periods, notwithstanding what their employment contracts may state.

Key Protections Under the BCEA

Employees who earn at or below the threshold are entitled to the protection of the following BCEA provisions:

  • Regulation of ordinary hours of work (section 9)
  • Overtime pay (section 10)
  • Compressed working week arrangements (section 11)
  • Averaging of hours of work (section 12)
  • Meal intervals (section 14)
  • Daily and weekly rest periods (section 15)
  • Additional pay for Sunday work (section 16)
  • Pay for night work (section 17(2))
  • Pay for public holidays on which the employee would not ordinarily work (section 18(3))

Implications Under the LRA and EEA

The threshold also has important implications beyond the BCEA. Under the LRA, employees earning below the threshold who are placed by a temporary employment service (“TES”) for more than three months may be deemed permanent employees of the client.

Similarly, fixed-term employees earning below the threshold may be deemed indefinitely employed after three months if there is no justifiable reason for the fixed term. These protections do not extend to those earning above the threshold.

Under the EEA, an employee earning above the threshold who has an unfair discrimination dispute (other than one involving sexual harassment) must refer that dispute to the Labour Court for adjudication, rather than to the CCMA for arbitration.

Can Existing Contracts Be Changed?

An important practical point: where an employee earns above the threshold but their employment contract already provides for overtime pay, Sunday pay or other benefits regulated by the BCEA, those contractual provisions remain valid and enforceable.

An employer cannot unilaterally remove them. Any change to existing terms and conditions of employment must be negotiated with the affected employees.

How Welman Attorneys Inc Can Help

At Welman Attorneys Inc, we understand that changes to the earnings threshold can have significant practical consequences for your business or your employment. Our labour law team assists clients with:

  • Reviewing and updating employment contracts to ensure compliance with the new threshold
  • Advising employers on their payroll obligations and exposure to claims
  • Representing employees who are now newly entitled to BCEA protections
  • Navigating CCMA proceedings or Labour Court referrals arising from disputes
  • Advising on the correct classification of TES workers and fixed-term employees

Whether you are an employer seeking to ensure compliance or an employee whose rights have changed, contact Welman Attorneys Inc for expert, practical advice tailored to your circumstances.

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