Since publication of this article, the national minimum wage has been officially announced in the Government Gazette. Follow this link to read the updated article!

Despite the weak state of the South African economy, as well as the impact of the Coronavirus (COVID-19) and negative effect of the lockdown on employers’ financial position, the National Minimum Wage Commission (NMWC) made a recommendation to the Minister of Employment and Labour to increase the current national minimum wage with effect from 01 March 2021. Until this is officially announced in the government gazette, employers must continue to comply with current legislation with regards to industry specific minimum wages.

The NMWC’s recommendation is to link the increase of the wage to the consumer price index (CPI) plus 1,5%. The CPI as of September 2020 was 3,0% and the NMWC submitted that the CPI will likely be 2,5% – 3,0% in January 2021. The increase is consequently calculated at 4,5% and entails an increase of the current minimum wage of R20.76 per hour to R21.69 per hour.

What about the agricultural sector?

The agricultural sector currently (2020) receives exemption to only pay 90,0% of the national minimum wage. This exemption expires and the NMWC’s recommendation is to equalise the minimum wage for farm workers with the national minimum wage of 2021. This calculates to a 16,1% increase of the current minimum wage of R18.68 per hour to R21.69 per hour. Employers in the agricultural sector should take note that domestic workers on a farm are regarded as farm workers and must receive the correct wage.

What about the domestic worker sector?

The domestic worker sector currently receives exemption to only pay 75,0% of the national minimum wage. The NMWC’s recommendation is to adjust the exemption to 88,0% of the national minimum wage of 2021. This calculates to a 22,6% increase of the current minimum wage of R15.57 per hour to R19.09 per hour. The NMWC further recommends to equalise the minimum wage for domestic workers with the national minimum wage of 2022.

The LWO is in the process of making representations to the Department of Employment and Labour and invites members and other employers to comment on the NMWC’s recommendation. Comments must be sent directly per e-mail unathi.ramabulana@labour.gov.za by 20 December 2020.

When the employment relationship is terminated, for whatever reason, it is very important that the employer follows the correct procedures and has the necessary supporting documentation in place, should the employee refer a dispute to the Commission for Conciliation, Mediation and Arbitration (CCMA).

The employment relationship can come to an end due to the following reasons:

• The employee resigns voluntarily
• The employer dismisses the employee after following a disciplinary hearing procedure
• The employer lays the employee off after following a retrenchment procedure
• The permanent employment contract reaches the end date (retirement age) and expires
• The fixed term employment contract reaches the agreed end date and expires
• The employee passes away

Employers must take note of the fact that an employee cannot dismiss him-/herself. When an employee absconds, it is a disciplinary offence and the employer must take the relevant disciplinary steps. The only way an employee can terminate the employment relationship, is to resign. Resignation can take place in two ways:

• Resign: Voluntary resignation – in writing
  The employee submits a written resignation to the employer and there is no uncertainty regarding the resignation. It is also clear that the employee was not dismissed. Employers should, as far as possible, attempt to get employees to resign in writing.
• Resign: Voluntary resignation – verbal and/or clear action
  When an employee resigns without confirming it in writing, it can create risk for the employer because it is more difficult for the employer to prove that the employee was not dismissed. A recent court ruling in the Labour appeal court, empowers employers to be able to accept a voluntary resignation that is not in writing, provided that the employer can prove that the employee’s action clearly and unambiguously indicated that the employee terminated the employment relationship voluntarily. Examples of this behaviour may include:
  • an employee who clearly verbally resigns and leaves the work premises thereafter;
  • an employee who hands in the employer’s issued equipment and then leaves the work premises;
  • an employee who displays the above behaviour and then accepts employment with another employer.

Alert level 1

South Africa moved to an alert level 1 status regarding the Coronavirus (COVID-19) pandemic since 21 September 2020. Download the Government Notices dated 17 September 2020 and 19 September 2020 to take note of and implement.

This pandemic undoubtedly has a wide impact on businesses.  Although we are currently on an alert level 1, businesses’ loss of income and obligation towards employees is still a great concern for many employers, especially where employers are unable to pay their employees in full.

Every business is unique and we encourage our members to contact the LWO for advice.  The LWO is available 24/7 to assist employers with regards to labour law.  Please contact the LWO for assistance at 086 110 1828 or if you have any queries in this regard.

What about the LWO?

• 24/7 telephonic and electronic advice – phone 086 110 1828 or send an e-mail to info@lwo.co.za;




• Legal services on the work premises of employers who are classified as essential services, or who are permitted to resume business activities under alert level 1.  These services for members are strictly monitored on a continuous basis and take place in line with applicable safety regulations.




• Legal services via online platforms such as Skype, Microsoft Teams, Zoom, Google Meet, etc. for employers who are classified as essential services, or who are permitted to resume business activities under alert level 1

We confirm that the LWO complies with the set requirements in terms of health and safety in the workplace.

Stay updated – www.sacoronavirus.co.za

Alert level 2

South Africa moved to an alert level 2 status regarding the Coronavirus (COVID-19) pandemic since 18 August 2020. Download the Government Gazette dated 17 August 2020 to take note of and implement.

This pandemic undoubtedly has a wide impact on businesses.  Although we are currently on an alert level 2, businesses’ loss of income and obligation towards employees is still a great concern for many employers, especially where employers are unable to pay their employees in full.

Every business is unique and we encourage our members to contact the LWO for advice.  The LWO is available 24/7 to assist employers with regards to labour law.  Please contact the LWO for assistance at 086 110 1828 or if you have any queries in this regard.

What about the LWO?

• 24/7 telephonic and electronic advice – phone 086 110 1828 or send an e-mail to info@lwo.co.za;
• Legal services on the work premises of employers who are classified as essential services, or who are permitted to resume business activities under alert level 2.  These services for members are strictly monitored on a continuous basis and take place in line with applicable safety regulations.
• Legal services via online platforms such as Skype, Microsoft Teams, Zoom, Google Meet, etc. for employers who are classified as essential services, or who are permitted to resume business activities under alert level 2

We confirm that the LWO complies with the set requirements in terms of health and safety in the workplace.

Stay updated – www.sacoronavirus.co.za

Thousands of employees were retrenched or dismissed during the COVID-19 induced lockdown. Many of these employees have turned to the Commission for Conciliation, Mediation and Arbitration (CCMA) for assistance and referred CCMA cases.

The CCMA has received nationally 23 532 referrals, affecting 43 867 workers from 1 April 2020 to 31 May 2020. Most cases referred pertain to unfair dismissals.

With CCMA cases, arbitration awards in favour of the employee are in general due to the employer not following the correct procedures (click on this link to read our article on “tips to survive the CCMA”) and can have a huge financial impact.

What can go wrong?

• What happens when you dismiss an employee “incorrectly”?
• What penalties are payable with labour disputes and CCMA cases?
• Do you settle for a generic employment contract with little protection?
• What happens when you don’t follow the correct procedure with every labour dispute every time?
• What happens when you lose your temper and dismiss someone “with immediate effect” in the heat of the moment?

Possible orders against the employer?

• CCMA: 3-12 months’ salary and/or reinstatement
• Labour court: 3-24 months’ salary and/or reinstatement

The LWO is a registered employers’ organisation with the Department of Labour and automatically has the right to represent our members in the CCMA, Bargaining Councils and Labour court. We have a proven track record at the CCMA with a success rate of 99.98%! The LWO was established in 1990 and have been assisting employers for 30 years!