Gig economy labour law changes and why ordinary SMEs should care

When people hear “gig economy”, they picture apps and drivers. But the possible labour law shift being discussed in South Africa is bigger than platforms. It is about work that is labelled “independent”, while the real relationship looks like ongoing labour for one business.

If your SME uses contractors, casuals, freelancers, drivers, installers, cleaners, promoters, or standby staff to stay flexible, these proposals could land in your world. Not because you run an app. Because you rely on labour on demand.

This article is general information, not legal advice.

What is being discussed right now

NEDLAC (National Economic Development and Labour Council) has published a final report on a labour law reform process, together with draft amendment bills. These drafts still need to move through the formal government and parliamentary process before anything becomes law. So, nothing here should be read as “this has already changed”. Think of it as the direction of travel, and a signal to tighten how you use flexible labour.

Two proposals that could affect non platform SMEs

1. A wider “employee” category for organising and bargaining rights

One draft proposes adding a new Schedule 11 to the Labour Relations Act. The aim is to extend freedom of association, organisational rights, and collective bargaining rights to a wider group of workers.

In simple terms, the target is the person who personally performs work for a business, but is not truly operating as an independent business selling services to multiple clients. The draft also introduces a presumption that someone is an employee for these purposes, unless certain factors show genuine independence.

Why this matters for ordinary SMEs

Many SMEs have long-running “contractor” relationships that are personal service relationships in practice. If that contractor works like a staff member and depends on your business for income, it becomes easier for labour rights arguments to surface, especially where workers organise or disputes arise.

2. New minimum rules for people who must be available, without guaranteed hours

Another draft proposes a new section dealing with “employees required to be available for work”. This is aimed at arrangements where a person is expected to be available to accept work, but does not have predictable hours.

If this becomes law, businesses would likely need clearer written terms on availability windows, notice to report, notice of cancellation, and guaranteed or maximum hours. It is also aimed at limiting blanket restrictions on people working elsewhere when they are not on call.

How this could apply outside the gig apps

Here are examples that have nothing to do with platforms, but can still fall into the “looks independent on paper, looks like employment in reality” zone.

• Drivers and delivery riders hired directly by the business

A restaurant or wholesaler uses “independent” drivers paid per delivery. The business decides routes, customer standards, and time windows. It can remove a driver from the roster immediately. That starts to look like control, direction, and economic dependence.

• Installers and field service teams

A solar, fibre, or HVAC business uses “subcontractors” who work mostly for that one business. They follow your checklist, use your tools, and are dispatched to your customers under your pricing and your rules. The more you manage the person like staff, the less protective the label becomes.

• Promoters, activations, and events crews

A business keeps a pool of promoters for weekend activations. People are expected to stay available. Shifts change late. Cancellations happen. That is the type of pattern these “availability” rules are trying to address.

• Casual retail, cleaning, and security rosters

A business keeps people “on standby” for peak periods. If their month depends on being available for you, your written terms and scheduling practices can become a compliance and dispute issue.

What changes first is not the statute. It is the friction

Even before Parliament finalises anything, proposals like these can change behaviour. Workers become more willing to organise. Terminating a contractor informally becomes riskier. Investors and enterprise customers start asking harder questions about how your flexible labour model really works.

A practical takeaway for SMEs

If you buy outcomes from truly independent businesses, this is less likely to touch you. If you rely on individuals who personally work inside your operations, under your rules, and you can switch their income on or off by changing access to shifts, rosters, or work allocations, assume your model could be tested by the direction of these reforms.

A good starting point is to check whether your contracts, rosters, and real day-to-day practices tell the same story. If they do not, the contract usually loses.

Sources

• NEDLAC labour chamber resource page: https://nedlac.org.za/labour-market/

• Final NEDLAC report on the labour law reform process (PDF): https://nedlac.org.za/wp-content/uploads/2025/02/FINAL-Nedlac-report-LLRTT-1102-v13.pdf

• Draft Labour Relations Act Amendment Bill (PDF): https://nedlac.org.za/wp-content/uploads/2025/02/Attachment-1-Labour-Relations-Act-Amendment-Bill-for-Mancom-corrected.pdf

• Draft Basic Conditions of Employment Act Amendment Bill (PDF): https://nedlac.org.za/wp-content/uploads/2025/02/Attachment-3-BCEA-Amendment-Bill-for-Mancomcorrected-.pdf

Disclaimer

This article is general information only. Get legal advice for your specific facts before acting. The StartUp Legal offers expert legal services tailored for SMEs, helping you secure a winning edge. For personalized support, book a complimentary consultation: https://calendar.app.google/EpR3xTiUgyw4gEek6 or email us at hello@thestartuplegal.co.za.