Dr Natasha Winkler-Titus
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Dr Natasha Winkler-Titus
Historically Workers’ Day symbolised victories for organised labour in the formal economy: fair wages, safe working conditions and the right to organise. Yet in contemporary South Africa, the meaning of “worker” has become far more complex.
In a country facing persistently high unemployment and shifting labour markets, the question we must ask is simple but profound: Who counts as a worker?
From a work psychology perspective, this question is not only legal or economic, it is deeply social and psychological. Work shapes identity, dignity, and belonging. But when definitions of work remain narrow, millions of people who contribute economically and socially fall outside the recognition and protection traditionally afforded to workers.
Who are workers?
South African labour law recognises several categories of workers within formal employment relationships, including permanent employees, fixed-term workers, part-time employees, casual workers, domestic workers, farmworkers and temporary agency staff. These groups are generally protected under frameworks such as the Basic Conditions of Employment Act.
However, not all people who work fall within these protections. Independent contractors, freelancers, and many gig workers are legally classified as self-employed rather than employees. As a result, they are often excluded from the legal frameworks designed to safeguard workers’ rights.
This distinction reveals a tension in modern labour markets: the widening gap between those recognised as workers in law and those who work in practice.
The precarious nature of work
The structure of work itself is changing. Globally and locally, employment relationships are becoming more flexible, project-based and temporary. Non-standard employment arrangements, such as freelancers, consultants, gig workers, and platform-based workers, are increasingly common.
While these models can offer flexibility, they often come with significant insecurity. Many workers face irregular income, limited benefits, weak legal protection and minimal bargaining power. This precariousness affects not only financial stability but also psychological wellbeing.
In South Africa, the strain is evident. Living costs for the average domestic worker have risen by 15% in the past year, far outpacing the roughly 5% increase in earnings, adding strain to mental health due to the persistent challenges of low wages, job insecurity and safety concerns.
Over half of employees in South Africa have reportedly been medically diagnosed with a mental health condition, with work-related stress being a major contributor. Many workers struggle to disconnect, reporting high levels of dissatisfaction and distress in their working environments.
The economic cost is equally stark. Employee absenteeism linked to depression costs the South African economy an estimated R19 billion annually. Broader mental health-related costs, including reduced productivity and turnover, range from R40 billion to as high as R161 billion.
These realities emphasise that the quality of work matters just as much as access to work. A truly dignified job must include not only physical safety, but also psychological safety within an environment where individuals can raise concerns without fear.
Unemployment and the limits of the formal sector
South Africa’s labour market crisis adds urgency to this discussion. The official unemployment rate stood at approximately 31.9% in 2025, with youth unemployment exceeding 46%. These figures point to a hard truth: the formal sector alone cannot absorb the country’s growing labour force.
For decades, policy discussions have focused on the creation of formal jobs. While these remain essential for stability and protection, their growth has not kept pace with demand. This reality compels a broader reconsideration of where work happens and what counts as meaningful economic participation.
In practice, millions of South Africans survive through alternative forms of work outside traditional employment relationships. These include street vending, home-based enterprises, informal trading, platform work, and various forms of self-employment. The informal sector plays a significant role in sustaining livelihoods.
Informal employment accounts for 21,4% of employment in South Africa providing income for millions of households. Rather than viewing the informal sector as a marginal or temporary phenomenon, it should be recognised as an essential part of the labour market.
Expanding work opportunities beyond formal employment
Addressing unemployment requires a more inclusive understanding of work and a more diversified approach to economic participation. There is no single solution which will resolve unemployment; a multi-pronged strategy is essential.
Informal enterprises often act as a buffer between employment and unemployment, enabling individuals to generate income when formal jobs are scarce. Supporting these enterprises through infrastructure, access to finance and skills development can significantly enhance their productivity.
Entrepreneurship and small businesses also play a crucial role in job creation, widely recognised as engines of economic growth. However, entrepreneurs often face barriers such as limited access to funding, regulatory complexity and high failure rates. Addressing these constraints could transform job seekers into job creators.
Public employment programmes also provide another important safety net, especially those that create temporary employment opportunities for low-skilled workers, which can contribute to community development.
At the same time, investment in skills development, vocational training and emerging sectors such as renewable energy and township economies, unlock new pathways to employment.
Protecting workers beyond the formal sector
Expanding access to work raises a critical question: how do we protect workers outside traditional employment relationships?
Informal and gig workers often lack access to social protections, healthcare benefits, unemployment insurance and pension systems. Many operate under unsafe conditions and unstable income streams.
From a work psychology perspective, protection must extend beyond legal definitions to encompass dignity, fairness and psychological safety. Workers who feel respected and empowered are more engaged, more productive and more resilient.
Encouragingly, policy innovations such as “smart formalisation” are gaining traction. Rather than attempting to eliminate informal work through rigid regulation, this approach seeks to support and strengthen informal enterprises while gradually integrating them into the broader economy.
Such models recognise that flexibility and protection are not mutually exclusive.
Worker rights and the future of work
South Africa’s labour history is rooted in the struggle for dignity, fairness and inclusion. But the world of work has evolved far beyond the conditions that shaped many existing protections.
Today’s workforce includes not only those in factories and offices, but also platform drivers, street traders, freelancers, consultants and entrepreneurs, and many others whose contributions fall outside traditional employment categories. If labour protections remain narrowly tied to formal employment, an increasing share of working people will remain excluded.
Workers’ rights must therefore evolve alongside the changing nature of work. This includes recognising the importance of mental health, ensuring safe and supportive working environments, and promoting worker voice and participation. It also requires innovative policy frameworks that extend protections to workers in non-traditional employment relationships.
A powerful reminder on Workers’ Day
Workers’ Day is more than a celebration of past victories. It is a reminder of the ongoing responsibility to ensure that every person who works is treated with dignity and fairness.
In a country facing deep unemployment and inequality, the challenge is not only to create jobs but to redefine how we understand work itself. Workers are not only those with formal contracts and stable salaries. They are also the street vendors who sustain township economies, the freelancers building digital careers, the gig workers navigating uncertain platforms and the entrepreneurs creating opportunities where none existed before.
The future of labour rights in South Africa depends on recognising these realities. Protecting workers must no longer be limited to the formal sector. Instead, it must extend to all those whose labour sustains our economy and communities.
*Winkler-Titus is a Senior Lecturer in Leadership and Organisational Behaviour and Programme Head of the PGDip Leadership Development at Stellenbosch Business School.