Rob Cooper, a Payroll tax expert at Softline VIP, part of the Sage Group plc says that 2012 will prove to be the starting year for a number of major new employment legislation initiatives.

Read about all the proposed changes in legislation regarding contributions to medical schemes, the Youth Subsidy project, retirement funds and annuities in the full article on the Softline website

Looking further ahead, SARS is still investigating the possibility of implementing a social security tax. “The legislation surrounding social security tax is however still on the table. In essence, the legislation will combine UIF, the road accident fund, social grants and the compensation fund under a ‘social security’ umbrella that will function as a holistic entity. It will effectively modernise and streamline the process” explains Cooper.

SARS is also looking at amending labour legislation. “There are quite a few aspects surrounding labour legislation that are currently under review,” says Cooper.

• Close down or regulate labour brokers

• Redefine an employer

• Introduce the concept of ‘decent work’ into legislation

• ‘Widen’ the definition of an employee

• Introduce a national ‘job placement’ system

Cooper says the labour legislation should be in draft form by no later than April 2012 and unless there is huge public opposition, could be promulgated into law by December 2012. The Minister of Labour is currently pushing very hard to move even faster than these dates.

“2012 will certainly be an interesting year as far as HR and Payroll administrative changes are concerned. It will therefore be advisable for practitioners in the field to stay abreast of changes in the New Year” concludes Cooper.