And that's a rap! A review of the South African HR & Labour Relations landscape in 2025, and a view of this landscape in 2026

As the year rapidly draws to an end, we reflect on the year that was, and cast a critical eye towards the year ahead.

2025 will be remembered as a year of legal recalibration and rising labour costs for South African employers. Three big themes shaped the HR and labour relations landscape: a higher National Minimum Wage; a fresh wave of law-making and court challenges around, inter alia, employment equity and labour-law amendments; and continued pressure on dispute resolution bodies and case law that employers can’t afford to ignore.

What changed this year?

• The National Minimum Wage rose to R28.79 per hour (R 4,990 per month), effective 1 March 2025

• Government and social partners pushed a substantial package of labour-law amendments and proposals affecting the LRA, BCEA, NMWA and Employment Equity Act, signalling broader regulatory changes. 

• The Employment Equity Amendment (stronger target-setting powers for the minister) triggered high-profile legal challenges in 2025, keeping transformation obligations squarely on employers’ radars.

• The CCMA launched its new strategic plan, ‘The Momentum Strategy 2025/26 – 2029/30’ in August 2025. Most practitioners agree that key CCMA and Labour Court decisions in 2025 reinforced the importance of procedural fairness and consistency in discipline and dismissal matters. 

How does this impact HR Leaders?

• Wage pressure is a reality. The NMW increase affects wage structures, payroll budgets and lower-paid job bands — not just in respect to basic pay, but also impacting allowances, overtime calculations and benefits linked to pay. 

• Greater compliance complexity. Proposed amendments and the Employment Equity legal contest mean employers must track both statutory obligations and the outcome of court reviews having the potential of changing compliance rules

• Enforcement and litigation risk. Courts and the CCMA have been clear that inconsistent disciplinary practices and poor processes attract findings against employers making documented and consistent HR processes, procedures and policies vital. 

     What can HR Leaders do going into the New Year?

• Revisit pay bands and payroll models. Model the budget impact of R28.79 per hour across employee categories (include overtime, shift allowances and base rate-related allowances). 

• Audit Employment Equity readiness. Update EEA plans and measurable targets.  Document the business rationale for decisions now, in case sectoral targets or enforcement are tightened going forward.     

• Tighten discipline & documentation. Standardise disciplinary procedures, train managers on consistent application and keep contemporaneous records - recent case law shows inconsistency is costly

• Engage with social partners and legal counsel. Track CCMA/labour court outcomes; participate in bargaining forums where possible to influence sectorial rules. 

In addition to the foregoing, South Africa's top HR & Labour Relations challenges in 2026 will continue to be centred on navigating complex, evolving labour laws like Employment Equity & the Code of Good Practice governing Dismissals, managing talent scarcity and retention amidst on-going socio-economic pressures, integrating new technologies (AI, data analytics) effectively, balancing hybrid work models, and addressing critical employee wellbeing and skills gaps with a focus on DEI.

These challenges will continue to highlight the need for agile, compliant, and people-centric HR strategies in a rapidly changing labour relations landscape. 

Key HR challenges for 2026:

• Navigating Complex & Evolving Labour Law: Keeping up with new regulations and legislation, especially around employment equity targets, flexible work, and dismissal codes, while managing compliance risks, will continue to be a major challenge for businesses.

• Talent Acquisition & Retention: Attracting and keeping skilled workers will continue to provide challenges due to economic strain, competition, and the need for more than just salary (e.g. flexible work, better benefits) to retain talent, especially skilled women.

• AI & Technology Integration: Whilst promising efficiency, integrating AI and data analytics for recruitment, payroll, and decision-making will continue to present investment and implementation challenges.

• Employee Wellbeing & Skills Gaps: Addressing mental health, stress, and burnout through proactive wellness programs (EAPs, financial wellness) and urgent upskilling (soft skills, digital literacy) will remain critical in 2026.

• Diversity, Equity, and Inclusion (DEI) & Culture: Building truly inclusive environments and cultures, addressing systemic inequalities, and managing multi-generational teams (Gen Z to Boomers) will continue to require strategic focus beyond basic compliance. 

Final thought

2025 demanded that HR teams be both strategic (pay and transformation planning) and operationally rigorous (process, discipline, documentation). Heading into 2026, the winners will be organisations that treat compliance as a strategic business enabler, and not simply a legal cost.

May I take this opportunity of wishing my readers, my colleagues, my business associates, my friends, and my family a truly joyous and blessed Festive Season, and a peaceful, productive and prosperous 2026.

Warm regards

Kevin

Owner - Dynamix HR Solutions www.dynamixhrsolutions.com 

Co-Owner - SynergyHR I Human Resources Consultants www.synergyhr.co.za