New plan could let unemployed South Africans bypass labour laws

South Africa’s unemployment crisis has come under renewed focus, with a proposal to allow jobseekers to opt out of labour laws in a bid to get more people into work.

The country’s official unemployment rate sits in the low to mid-30% range, while the expanded rate is in the 40s. Among people under 35, unemployment is estimated to be closer to 70%.

Whichever measure is used, the scale of joblessness remains severe, particularly for unskilled and long-term unemployed workers.

What the proposal suggests

The Free Market Foundation (FMF) has proposed a ‘jobseekers’ exemption certificate’ aimed at unemployed South Africans.

The certificate would allow individuals to voluntarily exempt themselves from certain labour laws, including minimum wage rules and collective bargaining agreements.

The FMF’s Zakhele Mthembu said the idea is to give unemployed people more flexibility to enter the labour market.

“If you're currently unemployed… You can choose to get the certificate… and then negotiate your terms, your wage, and everything directly with your employer.”

Focus on unskilled and excluded workers

The proposal is aimed at those who are currently shut out of the labour market, particularly unskilled workers who struggle to find entry-level jobs.

Supporters argue that existing labour laws increase the cost of hiring, discouraging businesses from employing low-skilled workers.

Mthembu said many unemployed South Africans are effectively ‘priced out of the labour market’ due to regulatory requirements that employers must meet.

Concerns about low wages and exploitation

The proposal has sparked concern that it could expose vulnerable workers to exploitation and significantly lower wages.

Critics argue that job seekers could be offered far below standard pay for the same work.

Mthembu acknowledged the concern but argued that the alternative for many is no job at all.

“The choice is between having no job… or getting employed on your own terms that you willingly chose.”

Debate over real-world impact

Questions remain about whether unemployed South Africans would accept lower wages in exchange for work or prefer to wait for better-paying opportunities.

Mthembu pointed to existing informal employment practices, saying some workers already take jobs that fall outside strict labour law compliance.

He added that this suggests there is demand for more flexible employment options, particularly among those with no income.

A policy in a broader crisis

The proposal is not positioned as a complete solution but as part of a broader effort to tackle unemployment.

With millions of South Africans out of work, the debate reflects growing urgency around finding ways to absorb unskilled workers into the economy.

Whether the jobseekers’ exemption certificate gains traction will likely depend on how policymakers balance job creation with worker protections.

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For more detailed information, listen to Mthembu on CapeTalk using the audio player below: