Proposed new employment and labour relations bill

At a glance

• The Employment and Labour Relations Bill No. 10 of 2025 (Bill) was published in the government gazette in early June.
• The new Bill consolidates all three existing employment laws into a single comprehensive statute with an aim to modernise Botswana's labour law framework.
• The legislation covers employment status, fixed-term contracts and probation, discrimination and harassment, leave entitlements, termination and dismissal, dispute resolution, collective bargaining and industrial action, and the director of labour powers. 

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On the 6 June 2025, the Bill was published in the government gazette.

Historically, Botswana’s employment law was fragmented. Employers had to consult different statutes:

• The Employment Act for contracts and conditions of service.
• The Trade Unions and Employers’ Organisation Act for collective rights.
• The Trade Disputes Act for dispute resolution.

The new Bill consolidates all three laws into a single comprehensive statute. This is not merely administrative housekeeping, it is a deliberate reform aimed at modernising Botswana’s labour law framework, strengthening worker protections and aligning more closely with international labour standards, particularly those of the International Labour Organisation. .

Implications for businesses

Employers now have one central point of reference, which simplifies navigation of the law. However, the consolidation also means a broader scope of compliance, covering not only contracts and conditions but also dispute resolution processes, collective rights and union matters. Businesses must therefore review and align their policies and practices holistically to ensure compliance under this expanded framework.

Employment status

The legislation focuses on standard employer-employee relationships and introduces a presumption of employment under Section 151. Specifically, individuals who meet the criteria of control and dependency, even if labelled as 'contractors', are to be treated as employees.

Businesses that engage consultants, direct sales agents, or other individuals classified as independent contractors may need to reassess their arrangements. If these individuals meet the control and dependency tests, they may now be deemed employees under the law, requiring reclassification and compliance with employment obligations.

Fixed-term and probation

Previously, regulation of probation and fixed-term contracts was limited.

Under section 20 of the old Employment Act (Cap. 47:01), probationary contracts could last from 3 -12 months if the contract was for 24 months or more. and termination during probation was permitted with notice. There were no statutory limits on the number of times a fixed-term contract could be renewed, nor any automatic conversion to permanent status.

The new Bill introduces stricter controls:

• Section 155: Probation is capped at six months and may only be extended in limited circumstances. Termination during probation is valid only if the employee has been informed of their shortcomings; and given training or support to improve.
• Section 157: Fixed-term contracts are limited to 12 months unless objectively justified. Employees on fixed-term contracts are entitled to equal treatment with permanent staff. In the event these rules are breached, the contract will be deemed indefinite.

Employers must revise HR policies to ensure probation procedures include structured feedback and documented support mechanisms. The practice of repeatedly renewing fixed-term contracts without justification should be avoided, as it may result in automatic conversion to permanent employment status and expose the organisation to legal risk.

Discrimination and harassment

Previously, coverage was only partial (eg, gender and race). No comprehensive prohibition of harassment.

The new Bill establishes broad anti-discrimination grounds: sex, disability, health status, sexual orientation, pregnancy, political opinion, etc. It also explicitly bans harassment (including sexual harassment). 

Employers must adopt anti-harassment and diversity policies, train managers and set up complaint mechanisms.

Leave entitlements

Previously, maternity leave was limited to 12 weeks, with no provision for paternity, adoption or family responsibility leave. Section 113 provided six weeks before confinement and six weeks after (total of 12 weeks). Employers were required to pay at least 50% of the employee’s basic pay as a maternity allowance. Sections 114–117 set out additional protections, including: maternity allowance not being affected by termination, prohibition on giving notice during maternity leave, entitlement to only one maternity allowance per confinement, and the right to nurse a child.

The new Bill expands statutory leave entitlements:

• Section 222: Maternity leave extended to 14 weeks (six weeks before confinement and eight weeks after), with employers required to pay at least 70% of basic pay.
• Section 224: Protects employees from termination while on extended maternity leave due to medical complications.
• Section 227: Introduces five days of paternity leave; where the mother dies or is incapacitated, the father is entitled to the remaining maternity leave.
• Section 226: Provides ten weeks of adoption leave for adopting children under two years of age.
• Section 220: Creates a new entitlement to 20 days of hospitalisation leave, separate from sick leave.

Payroll and HR systems must be updated to accommodate the new categories of leave. The expansion also increases the cost of planning for absenteeism.

Termination and dismissal

Termination of employment was permitted for misconduct, redundancy, or incapacity, but the law provided limited guidance on fair process.

Sections 17–27 of the old Employment Act (Cap. 47:01) governed termination, including notice requirements, severance and redundancy. Section 23: Restricted certain grounds for dismissal (eg, dismissal could not be based on trade union membership).

Section 25 required notice and severance pay in cases of redundancy.

In the new Bill, protections are expanded and clarified:

• Broad definition of unfair dismissal, covering dismissal on grounds such as maternity, trade union activity and discrimination.
• Retrenchments now require consultation with employees or their representatives.
• Constructive dismissal is expressly recognised.
• Employers must follow a fair disciplinary process before dismissal for misconduct or incapacity.

Employers must ensure reasons for termination are properly documented, apply fair procedures in misconduct cases and engage in consultation before implementing redundancies. Failure to comply significantly increases the risk of unfair dismissal claims.

Dispute resolution

Previously, labour disputes were fragmented across multiple bodies including the District Labour Offices and the Industrial Court.

The new Bill establishes a single Mediation and Arbitration Commission with enhanced enforcement powers.

Implications for businesses: While disputes may potentially be resolved more quickly, the stronger enforcement mechanisms increase the risk exposure for employers. Businesses should be prepared for early mediation and proactive settlement strategies to manage disputes cost-effectively and minimise liability.

Collective bargaining and industrial action

Collective rights were previously governed under separate laws with limited integration into employment legislation. This created uncertainty around how union matters intersected with day-to-day obligations.

The new Bill provides a structured framework by incorporating rights to union recognition, collective bargaining, and clear rules governing strikes and lockouts directly within the statute.

Businesses must now engage with trade unions in a more formalised manner, follow prescribed procedures before strikes or lockouts occur, and be prepared for more structured collective negotiations.

Director of labour powers

Under the old act, the Labour Inspectorate had relatively limited powers. Inspections focused mainly on child labour, contracts and wage compliance.

The new Bill strengthens inspection and enforcement powers:

• Section 35: Labour officers may enter workplaces, inspect records and question both employers and employees. Employers are required to produce wage books, leave registers, contracts and other employment documents upon request. Failure to comply constitutes an offence.

Businesses can expect increased compliance audits and must ensure that employment records and workplace policies are accurate, up-to-date, and readily available for inspection. Failure to comply carries greater risks of penalties and enforcement action.

Conclusion

This Bill represents a new dawn in labour relations in Botswana. It enhances employee rights, creates new compliance obligations and requires businesses to rethink how they manage employment relationships.

While it does increase the compliance burden, businesses that act early by updating policies, training staff and engaging constructively with employees and unions will not only avoid disputes but also build stronger, more sustainable workplaces.