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When employers rely on incorrect assumptions rather than the law itself, they unintentionally expose their businesses to unnecessary legal and operational risks.
Misconceptions about labour law are common and often perceived as legally correct. In the agricultural sector, these myths can become deeply entrenched, leading employers and employees alike to believe that certain workplace practices are permissible when they are not. When employers rely on incorrect assumptions rather than the law itself, they unintentionally expose their businesses to unnecessary legal and operational risks.
In this article, we highlight four common labour law myths in the agricultural sector and the legal truths behind them.
Myth #1
An employer and his/her employees can agree on terms and conditions of employment even if they do not comply with labour legislation.
Truth
While employers and employees generally enjoy considerable freedom to enter into contracts, any terms and conditions of employment must at least comply with the minimum requirements set out in the various labour laws in South Africa.
The main laws that regulate the terms and conditions of employment in the agricultural sector are Sectoral Determination 13 (SD13), gazetted under the Basic Conditions of Employment Act, 1997 (Act 75 of 1997) or BCEA, as amended. Employers are cautioned that any provision in an employment agreement that is inconsistent with or contrary to applicable legislation is unlawful. Employers and employees may, however, agree to terms that are more favourable to the employee than those prescribed by law.
Myth #2
An employee can be dismissed immediately for serious workplace misconduct, such as theft or dishonesty.
Truth
An employee cannot be dismissed before a disciplinary hearing has been conducted. Every employee must be given a fair opportunity to present his/her side of the case during a disciplinary hearing. Labour law requires that an employee’s dismissal be both substantively and procedurally fair. Therefore, even if the substantive reason for dismissing an employee is fair, the employer must still follow the correct disciplinary procedure. This means an employee cannot be dismissed without a disciplinary hearing being held in the case of misconduct.
If an employer dismisses an employee without following the proper procedure, the dismissal will be considered unfair. This can have serious consequences for the employer in proceedings before the Commission for Conciliation, Mediation and Arbitration (CCMA).
Myth #3
A farmworker can be fined when he/she has committed an alleged workplace offence.
Truth
This is a very serious yet common misconception in the agriculture sector that puts employers at risk. Currently, fines against farmworkers are strictly prohibited in South African law. Clause 7(3) of SD 13 clearly states: An employer may not levy a fine against a farmworker.
Myth #4
Domestic workers on the farm are not paid the same wage as general farmworkers.
Truth
Under South African labour law, domestic workers employed on farms are currently classified as farmworkers in accordance with SD13 and must therefore be remunerated accordingly. This position is further confirmed by the updated schedules to the National Minimum Wage Act, 2018 (Act 9 of 2018). As a result, domestic workers employed on farms must be paid at the same minimum wage rate as other farmworkers, namely R30,23 per ordinary hour worked, effective 1 March 2026.
In today’s increasingly regulated labour environment, employers cannot afford to make assumptions when managing employees. Practices that may seem commonplace or widely accepted are not always legally permissible, and mistakes can prove costly when disputes arise.
To mitigate risk and ensure compliance, employers should regularly review their employment contracts, disciplinary codes, workplace policies, and procedures to ensure they align with current labour legislation. Obtaining specialist labour law advice can help protect the business, minimise risk, and foster sound employment relationships in the workplace. – Hannes Latsky, training and compliance manager, LWO Employers Organisation
The LWO Employers Organisation assists employers to comply with labour law, and to use it to their advantage to protect their businesses. As a registered employers’ organisation with the Department of Employment and Labour, the LWO has the right to represent members at the Commission for Conciliation, Mediation and Arbitration (CCMA). Take note that this article is not legal advice – consult one of our legal advisors about any specific legal problem or matter. For more information, send an email to info@lwo.co.za or visit www.lwo.co.za
