With the Department of Employment and Labour expected to appoint more labour inspectors, employers should review their employment practices sooner rather than later.

Adding to the urgency is proposed legislation that could impose substantial penalties on employers who knowingly employ undocumented foreign nationals. In some cases, fines of up to R100 000 per employee may apply. This is not limited to large businesses. It could also affect households employing gardeners, domestic workers or other staff.

One option that has attracted attention is limiting an employee’s contractual hours to fewer than 24 hours a month. Although this arrangement is not practical for many employers, it does have important legal consequences.

Employees who work fewer than 24 hours a month are generally excluded from many of the core provisions of the Basic Conditions of Employment Act (BCEA). These include requirements relating to written employment particulars, working hours, overtime, annual leave, sick leave and notice pay.

However, employers should not assume that these employees have no legal protection. Key provisions of the Labour Relations Act still apply, particularly those dealing with unfair dismissal and unfair labour practices.

Although the law does not require a written employment contract for employees working fewer than 24 hours a month, having a signed agreement is strongly recommended. A properly drafted contract provides an important first line of defence should a dispute be referred to the Commission for Conciliation, Mediation and Arbitration (CCMA).

The contract should clearly record the agreed hours of work, remuneration, notice period and, importantly, that the employee is responsible for ensuring the agreed monthly hours are not exceeded.

Employers should also understand that the contract alone is not enough. If an employee regularly works more than the agreed limit, even with the employer’s tacit approval, the protections of the BCEA are likely to apply. In those circumstances, any clauses excluding those protections may become unenforceable.

For this reason, both parties should sign the contract, with the signatures witnessed. Any amendments should be initialled by both parties, and the employee should receive a copy of the signed agreement. Just as importantly, employers must actively monitor compliance with the agreed terms, particularly the monthly hours worked.

While limited-hours contracts are relatively straightforward to draft and administer, issues such as dismissal, disciplinary action and unfair labour practices remain legally complex. Employers should therefore seek professional advice before taking action that could result in a labour dispute.

Artificial intelligence has also made legal information more accessible, encouraging many employees to represent themselves in labour matters. While self-representation is permitted, the outcome often depends on a sound understanding of labour law and proper legal procedure.

Manning & Associates Labour Law advisory services, contact: 079 506 3827/ mikemanning.ma@gmail.com.