Farmers were alerted to major labour law changes at the North West African Farmers Association of South Africa’s (NWAFASA) farmers day, held at Stonehenge River Lodge in Parys today.
By Maile Matsimela, digital editor at African Farming
Given Seolwana, labour law expert and managing director at VHG HR and Payroll Consulting, delivered a sobering and wide-ranging address on sweeping changes to South Africa’s labour legislation, which are set to hit the agricultural sector with particular force.
Seolwanaopened with a statistic that drew audible reaction from the room: The Department of Employment and Labour has expanded its inspectorate from approximately 200 to 10 200 inspectors – a 50-fold increase that signals a fundamental shift in how compliance will be enforced across the country.
“Some of you might say you’ve never seen an inspector in your lives, and that’s correct. How do you expect 200 inspectors to cover every province, every business, and check for compliance?”
That era is over. These inspectors are currently completing an 18-month readiness programme, after which full business audits – not the sporadic, random sampling of old – will become the norm.
“We’ve gone past admin,” Seolwana said. “We are now going through policy. They’re going to audit our policies and make sure what we’ve said in the policies is actually implemented on the floor. South Africa doesn’t have problems with ideas. Implementation is the problem. Consistency is the problem.”
Also read: From handshakes to contracts: Securing your farm’s future
Casual and Seasonal Workers in the Crosshairs
For farmers, Seolwana flagged the treatment of seasonal and casual workers as one of the most urgent compliance risks. Under the old interpretation of The Basic Conditions of Employment Act (Act 75 of 1997) (BCEA), workers clocking fewer than 24 hours per week were largely excluded from its protections and did not require written documentation. That exemption is gone.
“Now, all of a sudden, we have to document it. How do you keep track of documentation for people who just come as and when you need them? You need systems that will help you provide that information, because when an audit comes, these are the kind of records they will be looking for.”
Employment Equity – More Than Just a Report
Businesses with more than 50 employees face intensified scrutiny regarding employment equity. This year’s 15 January submission deadline shifted the focus squarely onto employment equity plans, not just reports. Inspectors will be checking whether EE committee meetings are taking place, whether minutes are being kept, and whether the targets committed to in five-year transformation plans are actually being pursued.
“The plan means that I don’t have what you’re looking for now, but this is how I plan to get there in the next five years. And they hold you accountable to that.”
Also read: Avoiding legal traps: Common mistakes made by farmers
The Myth of the Unwritten Contract
One of the session’s most eye-opening moments came when Seolwana dismantled what she called a widespread employer myth. “If I don’t have a written contract, then automatically I don’t exist. It’s a myth.”
She recounted a recent case involving a husband and wife who had worked together, only to find themselves on opposite sides of a Commission for Conciliation, Mediation and Arbitration (CCMA) dispute following their divorce.
“Even your spouses – you need contracts with them,” she said. Then she added, “I thought I did labour law, not this.”
Without a contract, the CCMA defaults to the BCEA and applicable sectoral determinations, often backdating all unpaid obligations to the employee. An employee need only present bank statements showing regular payments to establish that an employment relationship existed.
Compliance Orders, Interest and Sheriffs at the Door
For those who receive compliance orders, the consequences escalate rapidly. Employers are typically given 14 days to rectify violations, but these orders arrive preloaded with interest penalties.
“Let’s say you were owing an employee R10 000 for back-paid overtime. Add the interest, and now you’re paying R12 000. Miss that deadline, and it increases again.”
Two companies Seolwana previously worked for had CCMA sheriffs arrive at their doors to attach and seize assets after failing to honour awards. She said she’d seen businesses liquidated because of compliance issues. The money paid for non-compliance was far greater than the cost of keeping the doors open.
Also read: Business registration and structuring for farmers: All you need to know
Severance, Notice and the Financial Burden
The financial pressure on employers during retrenchments is also set to increase significantly. Severance pay is proposed to rise from one week to two weeks for every completed year of service, on top of four weeks’ notice pay, whether worked or not, and full outstanding leave pay.
“As if liquidating the business is not big enough on its own, where do you get the additional money to cover two weeks?”
Salary Disclosure and the Payslip Ban
In a development that will change how farmers recruit workers, Seolwana confirmed it will soon be unlawful to publish a job advert without a salary attached. Equally, employers will be prohibited from requesting a candidate’s previous payslips during interviews – a practice that became widespread after employers discovered how easily payslips could be falsified.
“We’re dealing with a smarter generation. A person comes in at entry level claiming to earn R100 000. Who was giving you this money?”
The law, she noted, is stepping in to force a more transparent and equitable hiring process.
Also read: Lease and land-use agreements for farmers: All you need to know
The Bottom Line
Seolwana’s message was unambiguous: The law is tightening on every front, and farmers, given their reliance on seasonal labour, lean HR structures and complex employment arrangements, are particularly exposed.
“If we don’t have the right systems and the right advice to back ourselves up, we might find ourselves on the wrong side of the law.”
The time to act, she urged, is now, before the inspector knocks.
