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ALERT / OCTOBER 2, 2026
South Africa proposes codification of gender-neutral parental leave and increased severance pay
5 MIN READ
South Africa has proposed legislative reforms to expand employee protections and enhance statutory employment benefits. Key proposed changes include the codification of the gender-neutral parental leave framework first introduced by the Constitutional Court in 2025 and doubling severance pay from one week’s remuneration to two weeks’ remuneration for each completed year of service. The bill is still undergoing the legislative process and is not yet in force.
Background
On 26 February 2026, the Department of Employment and Labour published the Labour Law Amendment Bill, 2025 (the “Bill”) for public comment. The Bill seeks to amend several employment statutes and introduce changes across multiple areas of employment law.
Key details
The following sets out the most relevant employee benefit-related changes for employers to note:
Codification of unified and gender-neutral parental leave framework
Under the Bill, South Africa's existing maternity, parental, adoption, and commissioning parent leave provisions would be replaced with a more inclusive and unified parental leave model, which was first introduced through an interim order of the Constitutional Court in 2025.
In its decision, the Court found South Africa's existing leave framework unconstitutional as it discriminates between different categories of parents by providing different periods of leave. (See the Court’s decision here (opens a new window) and previous Lockton article here (opens a new window) for more details.) The Court ordered the interim implementation of a unified parental leave regime from 3 October 2025, which applies to all parents, regardless of gender and whether single or in a parental relationship. The Court also provided three years for Parliament to remedy the relevant legislative provisions.
The Bill would largely codify the Court-ordered framework, while also proposing additional changes which have yet to take effect. The following table sets out the key parental leave provisions as ordered by the Court and additional proposed changes under the Bill:
Interim parental leave provisions which took effect from 3 October 2025 | Proposed changes under the Bill |
Where an employee is a single parent or the only employed parent in a parental relationship, that employee is entitled to four consecutive months of parental leave. | No changes |
Where both parents are employed, a total of four months and ten days of parental leave can be shared as both parents may agree. The leave may be taken concurrently, consecutively, or partly concurrently and consecutively. Each parent must take their share of parental leave in a single block. | Removal of the express requirement for each parent to take their share of parental leave in a single block. Neither employee is entitled to more than four months’ leave. |
In cases of biological birth, the expecting birth mother may begin parental leave up to four weeks before the expected birth or any other date if certified as medically necessary. A birth mother must take six weeks of parental leave after the birth, unless she is certified fit for work. | No changes |
If there is no agreement on how parental leave is shared, the leave shall be divided equally between both parents. In cases of biological birth, the birth mother’s preference on whether to take parental leave in preparation for the birth shall take precedence in calculating how parental leave is to be shared. | If there is no agreement on how parental leave is shared: A birth mother shall elect to take four or less months of parental leave and the non-birthing parent shall be entitled to the remaining available amount. In adoptions or surrogacy arrangements, the leave shall be divided equally between both parents. |
The Court did not order an immediate change to the existing age cap in the adoption leave provisions, which still limit eligibility to children under two years old. Instead, it deferred to Parliament to decide whether the existing age cap is indeed necessary and at what age limit, if any, is appropriate. | In cases of adoption, the parental leave provisions would apply to adoptive parents of children up to six years old. |
Corresponding changes to Unemployment Insurance Fund parental leave benefits
Employers are not required to pay employees for parental leave, but eligible employees may claim benefits from the Unemployment Insurance Fund.
While the Court made changes to maternity, parental, adoption and commissioning parental leave from 3 October 2025, it notably refrained from ordering any changes to the corresponding benefit provisions in the Unemployment Insurance Act.
The Bill proposes changes to provide income replacement benefits for employees under the new unified parental leave regime at 66% of their income (previously, this ranged from 38% to 66% of income, depending on income level and the type of leave), subject to the maximum income threshold (ZAR 17,712 per month in 2026).
Increased statutory severance pay
The Bill proposes a substantial increase in statutory severance pay for employees dismissed due to the employer’s operational requirements. The minimum severance entitlement would double, increasing from one week to two weeks' remuneration for each completed year of service. The increased entitlement would only apply prospectively to completed years of service commenced after the amendment comes into effect.
Employer action: PREPARE TO ACT
Employers should note that most of the parental leave provisions proposed under the Bill have been in effect since 3 October 2025 as a result of the Constitutional Court’s decision. Employers should refer to the Court’s order here (opens a new window) for the provisions currently in force and, if they have not already done so, update their family leave policies, procedures, and employee handbooks accordingly.
Employers should also monitor the proposed increase in statutory severance pay and assess the potential impact on workforce restructuring costs and retrenchment planning should the Bill be enacted.
The Bill remains subject to the legislative process and may be amended before enactment. Employers should therefore continue to monitor developments and work with legal counsel to review the Bill in its entirety and assess which changes may affect their operations.
Further Information