Legal & Risk: What Businesses Need to Watch

Legal & Risk: What Businesses Need to Watch

2026-05-23

South African and UK businesses face evolving legal and compliance risks as regulatory shifts and operational challenges unfold. This week’s developments highlight two critical areas often overlooked: nuclear energy legal reforms and employment law sensitivities.

1. Nuclear Energy Reforms: Staying Ahead of Regulatory Overhaul

The South African government’s proposed amendments to the Nuclear Energy Act of 1999 (gazetted on 22 May 2026) signal a major shift in oversight and operational requirements for nuclear energy stakeholders. The draft regulations aim to strengthen state control, modernise administrative frameworks, and expand compliance standards for nuclear activities.

Legal angle most missed:

While the focus is on regulatory alignment, businesses involved in nuclear energy (e.g., operators, contractors, or suppliers) may neglect updating their contracts and internal protocols to reflect the proposed changes. Failure to align with stricter state oversight could lead to non-compliance penalties or operational disruptions if new rules on licensing, safety reporting, or waste management are enacted.

Compliance actions for businesses:

• Review all active contracts related to nuclear energy projects. Ensure terms align with the proposed amendments, particularly those involving state oversight or liability clauses.
• Update internal compliance frameworks to pre-empt new administrative requirements (e.g., documentation for regulatory approvals).
• Engage legal counsel to assess the impact of the 30-day public comment period on pending projects.

2. Employment Law Exposure: Language and Perception

A UK bank CEO’s controversial remark describing workers as “lower value human capital” drew swift backlash. While the statement was an apology, it underscores the legal risks of devaluing employees in public or internal communications.

Legal angle most missed:

Under the UK Equality Act 2010, employers must avoid language that could be perceived as discriminatory or dehumanising. Comments like these may expose organisations to claims of direct or indirect discrimination, harassment, or breaches of the Employment Rights Act 1996 (e.g., failure to uphold dignity at work).

Compliance actions for businesses:

• Audit all internal communications (e.g., emails, speeches) for language that could be construed as discriminatory or derogatory.
• Train senior leadership on appropriate terminology and the legal bounds of public statements.
• Review internal policies to ensure alignment with equality and diversity obligations under UK employment law.

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