This is a proposal and not a statement of law already in force. The Department of Employment and Labour has outlined proposed amendments intended to address arrangements in which a person is described as an independent contractor while the working relationship has the characteristics of employment.
Purpose of the proposal
The Department refers to the problem as disguised employment. This can arise in gig, platform, on-demand, freelance and contracting arrangements where the contractual label does not reflect how the work is directed, integrated and performed in practice.
The proposed amendments form part of a broader labour-law reform process involving the Basic Conditions of Employment Act, Labour Relations Act, National Minimum Wage Act and Employment Equity Act. The final wording, commencement date and transitional arrangements will depend on the legislative process.
Proposed section 50A approach
The Department's statement describes a proposed section 50A that would expand the employee definition or presumption. Under the proposed approach, the person engaging the worker would need to establish that the working arrangement does not have the relevant characteristics of employment.
The factors identified by the Department include whether the worker:
- is subject to the direction or control of the person receiving the work;
- is integrated into that person's organisation; and
- provides services to clients on terms determined by that person.
The proposal would therefore require attention to the substance of the relationship. A contract headed “independent contractor” would not, by itself, determine the worker's status.
Why classification matters
If a worker is found to be an employee, the engaging business may have obligations relating to working time, leave, minimum wages, PAYE, UIF, compensation for occupational injuries, labour-relations protections and record keeping. The exact consequences depend on the legislation, the worker's remuneration and the facts of the relationship.
What employers should review now
- Identify contractors, freelancers, platform workers and labour-only service providers.
- Compare the written agreements with the way work is actually assigned, supervised and measured.
- Assess control over hours, location, methods, pricing, client interaction and the ability to work for others.
- Consider whether the worker forms part of the organisation's normal operations.
- Review payroll, PAYE, UIF and COIDA consequences where the facts indicate employment.
- Avoid restructuring genuine employment relationships merely through contractual labels.
- Monitor the Bill, parliamentary process and commencement notices before implementing changes based on the proposal.
Current position
The Department's announcement does not by itself amend the BCEA. Employers should continue applying the law currently in force while preparing for possible changes. Any classification review should be based on the complete factual relationship and the applicable statutory tests.
Official source: Department of Employment and Labour, Amendment of BCEA addresses disguised employment, published 18 August 2026.
This legislation-watch article records a proposal as described by the Department on the publication date. It should not be read as confirmation that the proposed wording has been enacted or commenced.