Legal & Risk: What Businesses Need to Watch
2026-05-17
South African and international businesses must navigate evolving legal landscapes, particularly in employment, data privacy, and energy compliance. Here are three critical areas to monitor this week.
Businesses employing foreign nationals face heightened scrutiny under South Africa’s Immigration Act 2002 and Labour Relations Act 66 of 1995. A recent case highlighted by Cliffe Dekker Hofmeyr (CDH) underscores risks for employers who fail to verify work permits or adhere to fair labour practices. For instance, a Zimbabwean national employed as a bakery manager faced termination due to unauthorised employment status, exposing the employer to penalties under the Immigration Act and potential unfair dismissal claims under the LRA.
Compliance Action: Conduct immediate audits of all foreign worker contracts, ensuring permits are valid and aligned with the Employment of Foreigners in South Africa Regulations. Review employment terms to avoid violating minimum wage or working hour provisions in the LRA.
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Eskom’s R8.15 billion loss from electricity theft (as reported by MyBroadband) highlights risks for businesses. While Eskom focuses on curbing illegal connections, companies with premises on the grid risk legal action if their systems are involved in unauthorised energy siphoning, even indirectly. The Electricity Regulation Act 2008 imposes fines and potential criminal liability for those facilitating illegal connections, including suppliers of equipment used for theft.
Compliance Action: Partner with licensed electricians to audit premises for compliance with the Supply of Electricity Act 1996, and review contracts with third parties (e.g., contractors) for clauses that could expose your business to liability.
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In the UK, a new law banning paid exemptions from driving test waiting lists (BBC) raises data privacy concerns for businesses handling personal information. Under the UK General Data Protection Regulation (UK GDPR), companies offering services linked to test exemptions must ensure transparency in data collection and avoid exploitative practices. For example, if a firm processes payment data for such services, failure to conduct a Data Protection Impact Assessment (DPIA) could trigger fines.
Compliance Action: Review data workflows involving personal information for any new services, ensuring adherence to UK GDPR principles, including lawfulness, purpose limitation, and transparency.
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