Cap vs comeback: The new battle over reinstatement rights
Our Employment Law experts explain that the Labour Relations Amendment Bill, 2025, proposes significant reforms to the Labour Relations Act 66 of 1995. One of the proposed amendments is the introduction of a high-income threshold of R1,800,000 per annum. It is proposed that employees earning above this threshold would no longer be entitled to reinstatement as a remedy for ordinary unfair dismissals, with compensation capped. Reinstatement would remain available only in cases of automatically unfair dismissals.
In the article, Aadil, Nadeem, and Chantell examine the implications of the proposed amendments for the public service, with reference to the Public Service Act, 1994.
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