Labour Law Update 2026: New Dismissal Code and Parental Leave Reforms

Posted 15 April 2026 Written by Acts Online
Category Labour

Brought to you by SA Legal Academy: Recent regulatory shifts include the implementation of a unified Code of Good Practice on Dismissal and a landmark Constitutional Court ruling mandating universal parental leave entitlements.

In terms of the Labour Relations Act, No. 66 of 1995 (LRA), a new Code of Good Practice: Dismissal took effect in September 2025. This instrument consolidates and replaces previous fragmented guidelines, including the original Schedule 8 of the LRA and the Code of Good Practice on Dismissal Based on Operational Requirements. The 2025 Code introduces a unified framework that prioritises substantive fairness and flexibility over rigid procedural matrices.

Constitutional Court Ruling on Parental Leave

In the matter of Van Wyk and Others v Minister of Employment and Labour (October 2025), the Constitutional Court declared specific sections of the Basic Conditions of Employment Act, No. 75 of 1997 (BCEA) and the Unemployment Insurance Act, No. 63 of 2001 (UIA) unconstitutional. The Court found that the existing framework unfairly discriminated between birth mothers, fathers, adoptive parents, and commissioning parents.

While Parliament has been granted 36 months to enact remedial legislation via the anticipated Labour Law Amendment Bill 2025/2026, the Court implemented the following interim arrangements with immediate effect:

  • All parents—whether birth, adoptive, or commissioning—are entitled to four consecutive months of parental leave.
  • In households with two parents, the four-month leave period may be shared between them at their discretion.
  • Entitlements apply regardless of gender or biological status, dismantling the previous ten-day restriction for fathers and secondary caregivers.

Artificial Intelligence and Workplace Regulation

In April 2026, the Department of Communications and Digital Technologies published the Draft South Africa National Artificial Intelligence Policy. This policy introduces regulatory oversight for the use of AI in recruitment, performance management, and employee surveillance. Practitioners must ensure these technologies comply with the Employment Equity Act, No. 55 of 1998 (EEA) to prevent algorithmic bias and the Protection of Personal Information Act, No. 4 of 2013 (POPIA) regarding automated data processing.

What this means for you, your business, or your clients

  • For yourself: No direct individual obligations; impact is channelled through professional advisory duties to ensure all legal counsel aligns with the 2025 Dismissal Code and interim BCEA arrangements.
  • For your business: Employers must immediately rewrite maternity and paternity leave policies to reflect the “Universal Parental Leave” principles of four shared months to avoid constitutional challenges and adverse CCMA awards.
  • For your clients: Advise clients to conduct an immediate audit of automated recruitment and monitoring tools to ensure compliance with the Employment Equity Act, No. 55 of 1998 and mitigate the risk of class-action discrimination suits.

Originally published at https://legalacademy.co.za/news/read/annual-labour-law-update-legislative-developments-and-case-law-insights-for-2026

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