11 November 2025

The National Economic, Development and Labour Council Bill, 2025 was recently introduced in the National Assembly of the Republic of South Africa. This proposed legislation, sponsored by the Minister of Employment and Labour, is intended to replace the existing National Economic, Development and Labour Council Act, 1994 (Act No. 35 of 1994).

Core Purpose and Functions

 

The Bill provides for the continued existence of the National Economic, Development and Labour Council (NEDLAC) as a juristic person, despite the repeal of the 1994 Act. NEDLAC is constituted by organised business, organised labour, organised civil society, and the State.

The objects of NEDLAC are to strive to promote the goals of economic growth, employment, social inclusion and social equity, and to seek to reach consensus among the parties to NEDLAC on socio-economic policy.

Its functions include concluding agreements on socio-economic policy and, subject to certain limitations, to consider and report on all proposed labour market policy, labour market related legislation, and labour market related subordinate legislation before they are issued or introduced. It must also exercise oversight over the implementation of agreements and considered policies and legislation. NEDLAC may also prepare and issue codes of good practice in terms of the Labour Relations Act.

Admission of Social Partners

 

The parties to NEDLAC are the State and those parties admitted in terms of this Act and the constitution. The Bill determines the criteria for the admission of social partners as parties to NEDLAC.

• Organised Labour: A federation of trade unions may only be admitted and remain a party if it, alone or jointly, meets the criteria set in the Schedule. The criteria include complying with section 107 of the Labour Relations Act, being constituted democratically, and having affiliates with a certified membership in excess of the prescribed membership threshold.
• Organised Business: An employer or business organisation may only be admitted and remain a party if it, alone or jointly, meets the criteria set in the Schedule. The criteria include being registered as a federation of employer organisations complying with section 107 of the Labour Relations Act, or as a non-profit company in terms of the Companies Act, 2008, being constituted democratically, and having the employers or businesses belonging to its constituent organisations in excess of the prescribed membership threshold.
• Organised Civil Society: A federation of non-governmental organisations may only be admitted if it meets the criteria set in the Schedule and is appointed by the Minister in the Presidency on the recommendation of the executive committee and in accordance with a prescribed process. The criteria for organised civil society include being registered as a nonprofit organisation (Nonprofit Organisations Act, 1997) or as a non-profit company (Companies Act, 2008), being constituted democratically, and being the most representative federation of non-governmental organisations in the Republic representing civil society interests relating to socio-economic issues.

Structure and Governance

 

NEDLAC is governed in accordance with the constitution by an executive committee and such other committees as may be established.

• NEDLAC Lekgotla: This forum consists of representatives appointed by the four constituencies. Its functions include reviewing NEDLAC’s functioning and performance, and considering and responding to reports from the State on major socio-economic issues. It must meet at least once a year.
• Executive Committee: The executive committee is the accounting authority of NEDLAC and is subject to the provisions of the Public Finance Management Act, 1999. It consists of representatives of all four constituencies. The constitution must provide for the number of representatives, provided that the voting power of each constituency is equal. The Minister must appoint the Members and their alternates from nominations received from the constituencies they represent.

Repeal and Transition

 

The National Economic, Development and Labour Council Act, 1994 (Act No. 35 of 1994) is hereby repealed.

The founding parties and parties admitted under the old Act are deemed to be the parties to NEDLAC under the new Act. However, those parties that do not comply with the new requirements in section 6 and the Schedule must comply within 12 months of the new Act coming into operation, or risk termination of their deemed status.

The Bill is called the National Economic, Development and Labour Council Act, 2024, and takes effect on a date fixed by the President by proclamation in the Gazette.

Would you like me to analyze the specific criteria for any of the parties to NEDLAC?