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FREEDOM OF TRADE AND LABOUR IN 2024: PROGRESS, PITFALLS AND POLICY SHIFTS
Issued by Sonia Twongyeirwe on behalf of the FW de Klerk Foundation on 11/07/2025
Introduction
The FW de Klerk Foundation’s 2024 Human Rights Report Card gives a clear account of the state of basic rights in South Africa – including the right to freedom of trade, occupation, profession and labour relations. Section 22 of the Constitution protects every citizen’s right to choose their trade, occupation or profession freely. It also allows the law to regulate how these are practiced. Section 23 guarantees the right to fair labour practices. Every worker has the right to join a trade union, take part in its activities and to strike. Employers have the right to form organisations of their own and to take part in them. The law may regulate collective bargaining, as long as it meets the test set out in section 36(1).
Loss of Citizenship
The Constitutional Court’s decision to confirm the Supreme Court of Appeal’s judgment declaring section 6(1)(a) of the South African Citizenship Act, 1995, unconstitutional was handed down in 2025. The FW de Klerk Foundation’s 2024 Report does not cover this ruling, but the decision has since affected the right to work, because the loss of citizenship meant you also automatically lost the right to work in South Africa.
Equity
The Employment Equity Amendment Act, 2022, came into force on 1 January 2025. Though it was not yet in effect during the period covered by this report, its implications for the right to equality in the workplace are significant and far-reaching: It aims to promote diversity and equality in the workplace, changing the Employment Equity Act, 1998. It, for example, gives the Minister of Employment and Labour the power to set sector-specific numerical targets for the representation of designated groups to ensure equitable representation. Critics argue that the Act will have a catastrophic impact on the employment and promotion opportunities for minority racial groups, undermining workforce diversification and inadvertently causing job losses, lower economic growth and increased unemployment.
Unemployment
In 2024, South Africa’s official unemployment rate stood at 32,8%. Among the youth – those aged 15 to 34 – the rate was even higher (45,5%). Nearly half of young women (49,4%) were without work in 2024. The FW de Klerk Foundation submitted that lack of safety is a critical barrier to entry that is preventing women from participating in the economy. Until all South Africans, especially young people and women, can work in safety and dignity, this right will remain unfulfilled.
National Health Insurance Act, 2023
Despite widespread public concern and questions about its affordability, the National Health Insurance Act, 2023, was signed into law by the President on 15 May 2024. The Act sets in motion a phased plan to introduce universal health coverage in South Africa. Key features of the Act include the establishment of the National Health Insurance Fund sourced from primarily general tax revenue. This Fund will become the sole purchaser and payer of healthcare services. Health care providers and practitioners will be contracted by the Fund and will not be entitled to set their own rates which will be determined by the Fund. The Act has not yet come into effect. Various observers fear, among other negative consequences, an exodus of medical professionals, as the Act will limit their ability to pursue their occupation and profession sustainably.
Labour Law Amendments
On 29 November 2024, the National Economic Development and Labour Council approved a report that proposed changes to various labour laws, including the Labour Relations Act, 1995, the Basic Conditions of Employment Act, 1997, the Employment Equity Act, 1998, and the National Minimum Wage Act, 2018. This follows a new wave of labour law amendments that were announced in October 2024. The Department of Employment and Labour announced that the reforms aim to improve the efficiency of labour market institutions – especially in areas such as dismissals, retrenchments, collective bargaining and strike action. The goal is to make labour laws more responsive to market shifts, simplify procedural fairness and strengthen the role of bargaining councils and the Labour Court.
Conclusion
The lack of safety as a barrier to work for women continues to infringe on their freedom of trade, occupation and profession. The high unemployment rate also reveals a lack of opportunities in the current economy for South Africans, especially for the youth. Likewise, the National Health Insurance Act not only lacks a sustainable funding model but also may cause a mass exodus of many medical professionals if the Act is implemented. A silver lining lies in the labour law amendments which signals improvements being made in the labour market going forward. For more information on the health of this important right, see the FW de Klerk Foundation’s 2024 Human Rights Report Card.