Strict new transformation laws for South Africa coming in 2023 – what you need to know

[BusinessTech]

Strict new transformation laws for South Africa coming in 2023 – what you need to know

New transformation laws are coming into effect in South Africa in 2023.

 

[shinji]

This designated employer definition has now changed under the amended bill in those employers that employ fewer than 50 employees, irrespective of their annual turnover, will no longer form part of the designated employer definition and, therefore, will be exempt from compliance.

 

[Harmonic]

employers that employ fewer than 50 employees, irrespective of their annual turnover, will no longer form part of the designated employer definition and, therefore, will be exempt from compliance.

I could imagine this capping a lot of small/medium businesses to 49 employees and filling the rest of the labor needs with contractors.

 

[rvZA]

I could imagine this capping a lot of small/medium businesses to 49 employees and filling the rest of the labor needs with contractors.

If you need to get rid of AA and BEE, then this is the way to go. Lower your workforce to 49. Make that 49 work for their money.

 

[Sarg3_ZN]

I could imagine this capping a lot of small/medium businesses to 49 employees and filling the rest of the labor needs with contractors.

What if they just create another company, limited to 49 staff or less to provide those services?

 

[Harmonic]

What if they just create another company, limited to 49 staff or less to provide those services?

Or that. I wonder if that's not accounted for in the legislation

 

[Vrotappel]

Transformation to utter **** continues.

 

[dualmeister]

┌∩┐(◕_◕) ┌∩┐

 

[Fulcrum29]

I could imagine this capping a lot of small/medium businesses to 49 employees and filling the rest of the labor needs with contractors.

It depends on how some will game the system and with whom you are doing business with where procurement rules would apply. Realistically, though this is an exemption, any business that wants to grow beyond this exemption would need to have a growth plan in accordance with the compliance laws. I have pointed this out so many times now. Any business which will outgrow 50 employees within 2023 or at any other point in time isn’t truly exempt. I do see many businesses ‘restructure’ to adapt, some starting the process early or having already started the process.

Then there are the sectoral codes which must be read in line with this regulation where applicable. Not to ignore that any rule here can change, and possibly at short notice.

New business, small business (incl. SOHO/WFH) or the general start-up are those who will be rewarded with a relaxation period or so I call it. Just know that some sectors will be targeted harder than others.

 

[Pegasus]

So 2/3 majority for the ANC next year.
From 50% to 67% will be on grants in 2024.

29 million South Africans receive grants – with only 7.4 million taxpayers

29 million South Africans receive grants – with only 7.4 million taxpayers President Cyril Ramaphosa confirmed that 29 million people in South Africa receive monthly grants, which economists warn is unsustainable with the country’s small tax base.

mybroadband.co.za

 

[Harmonic]

It depends on how some will game the system and with whom you are doing business with where procurement rules would apply. Realistically, though this is an exemption, any business that wants to grow beyond this exemption would need to have a growth plan in accordance with the compliance laws. I have pointed this out so many times now. Any business which will outgrow 50 employees within 2023 or at any other point in time isn’t truly exempt. I do see many businesses ‘restructure’ to adapt, some starting the process early or having already started the process.

Then there are the sectoral codes which must be read in line with this regulation where applicable. Not to ignore that any rule here can change, and possibly at short notice.

New business, small business (incl. SOHO/WFH) or the general start-up are those who will be rewarded with a relaxation period or so I call it. Just know that some sectors will be targeted harder than others.

According to the article the rules apply wether you do business with government or not.

 

[justplain]

and Ramadingdong was only recently preaching from the roof tops about how racism must not be tolerated in ZA............
pot/kettle/black

 

[grok]

Notice the total lack of transformation in the ANC NEC.. I guess political parties are exempt even if they employ people?