Botswana is preparing for the most significant overhaul of its labour laws in decades. The Employment and Labour Relations Act, 2025 (ELRA) (No. 10 of 2025) will commence on 1 September 2026. The Act consolidates and modernises the previous Employment Act, Trade Unions and Employers’ Organisations Act, and Trade Disputes Act into a single comprehensive framework.

The Act was passed by Parliament on 15 July 2025, assented to by the President on 27 November 2025, and gazetted on 1 December 2025, following eight years of engagement on the review of the country’s employment legislation.  The commencement date of the Act is st to be 1 September 2026

The founding regulations are still to be made available ahead of the commencement date

Key Changes Under the Employment and Labour Relations Act 2025

1. Employment Contracts and Status

• Fixed-term contracts are generally capped at 12 months unless there is an objective justification for a longer period. Unjustified successive renewals risk automatic conversion to indefinite employment. Fixed-term employees must generally receive equal treatment to permanent staff.
• Probation is capped at 6 months (extensions only in limited circumstances). Termination during probation requires the employee to have been informed of shortcomings and given support or training where appropriate, documentation is required as proof.
• There is a presumption of employment where a person works under conditions of control and dependency, even if labelled a “contractor” or consultant. Independent contractor and freelance arrangements require careful review.
• Written contracts are strongly recommended and should clearly set out key terms including role, pay, hours, leave, and notice.
• Current, active fix-term contracts remain in place as is, until its expiration.  Open-ended contracts should be amended.

2. Working Hours, Overtime and Rest

• Standard working hours are typically up to 48 hours per week (commonly structured as 8 hours × 6 days or 9 hours × 5 days).
• Overtime is generally limited and paid at 1½ times the ordinary rate on ordinary days and double time on rest days and paid public holidays.
• Employees are entitled to at least 24 consecutive hours of rest in every 7-day period (usually including Sunday).
• Night-work transport and/or accommodation obligations may apply in certain cases.

3. Leave Entitlements

Payroll and leave-management systems will need updating for the new categories and rates.

4. Discrimination, Harassment and Equality

• Broad protection against discrimination on grounds including race, tribe, origin, gender, marital status, sexual orientation, disability, health status (including HIV), pregnancy, and political opinion.
• Discrimination can attract criminal sanctions (significant fines or imprisonment).
• Sexual harassment is explicitly prohibited. Employers must have clear policies and effective complaint mechanisms.
• Reasonable accommodation requirement apply to employers to be in a position to employ persons with disabilities.

5. Termination, Discipline and Retrenchment

• Fair procedure is required before dismissal (including during probation in many cases).
• Unfair dismissal protections have been strengthened, including protections linked to maternity, union activity, and discrimination.
• Constructive dismissal is formally recognised.
• Retrenchments require significant consultation.
• Notice periods remain linked to length of service or contractual terms.
• Timely wage payment is required; non-payment can attract fines (reports indicate up to P10,000 in some cases), possible imprisonment, and powers for the Director of Labour to attach assets.

6. Other Notable Provisions

• Minimum wages remain sector-specific
• Record-keeping requirements are strengthened, with enhanced labour inspection powers.
• Trade union and collective-bargaining rules have been modernised as part of the consolidation.

Preparing for Compliance

Ongoing employment contracts remain valid until their stipulated end dates.

Organisations are advised to align new contracts with the Act and review existing arrangements.

Recommended preparatory steps include:

• Conducting a gap analysis of current contracts, policies, and practices against the new Act.
• Updating employment contracts, staff handbooks, leave policies, anti-harassment policies, and termination procedures.
• Strengthening systems to record enhanced leave entitlements, hours, wages, and other required information.
• Establishing or refreshing confidential reporting channels for harassment and discrimination complaints.
• Training managers on fair process, new leave entitlements, and discrimination/harassment rules.
• Reviewing contractor versus employee classifications.
• Monitoring Ministry of Labour guidance and any further secondary legislation or Regulations.

by Yolande Bezuidenhout

People