Labour regulations discourage employment by small business

Michael Bagraim – MP

Our whole labour regulatory system in South Africa is negative for small business. Small businesses are discouraged from entering into employment relationships because of the arduous regulations disallowing easy termination of employment. The laws governing hiring and firing are exactly the same for the small business in the townships as they are for a large mining company.

Hundreds of other jurisdictions have seen their way clear to various exemptions for small businesses. These exemptions allow small businesses to move beyond the survivalist phase. In reality, the businesses suffering the most are black owned, and trying to make a living in formerly disadvantaged areas.

Daily, I sit in the Labour Portfolio Committee chipping away at these onerous regulations, but there doesn’t seem to be the will or understanding of how business functions. It is only when I get one or two small concessions that I find the strength to continue this argument.