Labour Department Moves to Close Compliance Gaps Across High-Risk Sectors

Many workers in these industries are currently designated as independent contractors, despite working under conditions that closely resemble permanent employment.

 

The Department of Employment and Labour has taken decisive regulatory steps to strengthen worker protections and close long-standing compliance gaps across several high-risk sectors, including security services, municipalities and the creative industries.

In a statement issued on Thursday, the department confirmed that it has officially withdrawn the 2003 Variation Notice that had exempted certain employers from the application of Section 34A of the Basic Conditions of Employment Act (BCEA), which governs the payment of employee benefit fund contributions.

Inspectors Regain Powers to Enforce Benefit Payments

The withdrawal of the exemption restores the authority of labour inspectors to enforce the timely payment of pension, provident fund, retirement and medical aid contributions deducted from employees’ salaries.

For years, the exemption created what the department described as a “significant enforcement gap”, leaving workers vulnerable to employers who deducted benefit contributions from wages but failed to transfer them to the relevant funds.

“With the exemption now removed, inspectors are empowered to verify whether employers have paid contributions into the correct funds, request proof of payment and contribution schedules, and take enforcement action wherever non-compliance is detected,” the department said.

The department noted that the intervention significantly strengthens workplace-level accountability, particularly in the security sector and municipalities, where non-payment of benefit contributions has been widespread and persistent.

Creative Industry Workers May Be Classified as Employees

In a separate but related development, Minister of Employment and Labour Nomakhosazana Meth has published a notice indicating the department’s intention to classify performers and crew members in the film, television, advertising, artistic and cultural sectors as employees.

Many workers in these industries are currently designated as independent contractors, despite working under conditions that closely resemble permanent employment. According to the department, this classification has excluded large numbers of workers from basic labour protections.

The proposed change would extend essential rights and protections, including:

• Access to sick leave, maternity leave and severance pay;

• Protection under the National Minimum Wage;

• Coverage through the Compensation for Occupational Injuries and Diseases Act (COIDA).

The proposal would also ensure compliance with BCEA provisions on working hours, termination procedures and record-keeping, while extending protections related to fixed-term contracts under the Labour Relations Act.

Responding to Worker Vulnerability

The department said the proposed reforms follow strong stakeholder submissions and reflect growing recognition of the vulnerability of performers and production workers, many of whom operate without basic job security or income protection.

It confirmed that the consultation process could lead to the introduction of a sectoral determination specifically tailored to the operational realities of the creative industries.

Stakeholders have 30 days from the date of publication to submit written representations. In parallel, the Minister has requested the National Minimum Wage Commission to investigate wage levels and employment conditions in the sector.

Advancing Decent Work and Fairness

The department said the combined measures represent a clear step forward in advancing decent work in South Africa.

“Together, these regulatory measures mark a clear step forward in closing compliance gaps, protecting vulnerable workers, and ensuring that employers across all industries uphold the country’s labour laws,” the department said.

“The actions reinforce the department’s dedication to promoting fairness in the workplace, strengthening accountability among employers, supporting a more equitable labour market, and safeguarding the rights and dignity of all workers.”

Officials said the interventions signal a renewed enforcement approach aimed at ensuring that labour protections are not only legislated, but meaningfully applied across the economy.