What business owners need to know now
Effective 1 September 2026, Botswana entered a new era of employment regulation.
The Employment and Labour Relations Act, 2025 and the Employment and Labour Relations Regulations, 2026 are now in force.
For employers, this is more than a legislative update. The new framework consolidates key areas of employment law and regulates employment relationships, workplace rights, labour relations, collective bargaining, dispute resolution and enforcement.
It also places greater emphasis on documented processes, employee records, payroll evidence, consultation and demonstrable compliance.
For business owners, the key message is simple:
The risk is no longer only whether the business has the right contract. It is also whether the business can show that it has managed the employment relationship fairly, consistently and in accordance with the law.
If a labour office, employee or court requested proof of compliance, would your business be ready to provide it?
This briefing answers three practical questions: what has changed, what business owners should do now, and what records or evidence they need to demonstrate compliance.
The aim is to help employers move from awareness of the new framework to practical action across contracts, policies, payroll, records and management practices.
The changes business owners should prioritise
Fixed-term contracts
Fixed-term employment is now subject to tighter controls. As a general rule, a fixed-term contract should not exceed 12 months unless there is objective justification for a longer period.
Businesses should pay particular attention to repeated renewals and arrangements where employees remain on successive “temporary” contracts for roles that are, in substance, permanent.
Employers should be able to explain why a fixed-term arrangement is being used and should review long-running or repeatedly renewed contracts.
Practical question:
Why is this position genuinely fixed-term, and can we demonstrate the reason?
Probation
Probation is generally limited to six months, subject to the circumstances set out in the Act. It should not be treated as an informal trial period in which the employer can make decisions without proper records.
Employers should:
- set clear expectations;
- monitor performance;
- provide training and feedback;
- document material concerns; and
- give the employee a reasonable opportunity to improve.
“They failed probation” should be supported by clear evidence.
Dismissal & discipline
A valid reason for termination is only part of what is required. Businesses also need a fair and defensible process for disciplinary matters.
Depending on the circumstances, this should include:
- an appropriate investigation;
- notice of the concern;
- an opportunity for the employee to respond;
- consideration of the relevant facts; and
- a proportionate decision.
Managers should not improvise disciplinary procedures. A decision that appears reasonable at the time can become difficult to defend if the employer cannot show how it was reached.
Retrenchment & restructuring
Business restructuring remains possible, but retrenchment should be managed systematically.
Employers should:
- document the commercial reason for the proposed restructuring;
- consider alternatives where appropriate;
- apply fair and objective selection criteria; and
- comply with applicable consultation, notification and statutory requirements.
Where retrenchment is proposed for operational requirements, the Regulations identify specific information that must be disclosed, including financial statements and approved budgets.
Termination for operational requirements should not be treated as a standard HR letter. The business must be able to demonstrate both the genuine business rationale and the process followed.
There is also a prescribed minimum retrenchment package of 10 days’ basic pay for each completed year of service, in addition to any severance entitlement.
Contractors & consultants
The label on an agreement is not necessarily decisive. Businesses should review contractors, consultants and other non-standard workers against the substance of the relationship.
Particular attention should be given to individuals who:
- work fixed hours;
- report to company managers;
- are subject to significant company control;
- use company equipment or resources;
- are economically dependent on the business; or
- perform ongoing functions that form part of the ordinary business.
Ask the practical question:
“If we removed the title from this agreement and looked only at how this person works, would the relationship look like employment?”
Leave & payroll
The Act introduces important statutory employment entitlements and increases the importance of accurate payroll and employment records.
These include:
- 14 weeks of maternity leave, with the statutory maternity benefit requirements;
- five days of paternity leave;
- 10 weeks of adoption leave;
- statutory sick leave and hospitalisation-related entitlements provided under the Act;
- three days of family responsibility leave, including for funerals and ill health; and
- provisions for night-duty allowance and acting-appointment allowances.
Payroll compliance is more than paying the right amount. Payroll and HR systems should be reviewed against the detailed requirements of the Act and the Employment and Labour Relations Regulations, 2026, including the applicable rules on wages, deductions, leave and employment records.
Do not rely on an old payroll configuration simply because it has worked in the past. Errors or inconsistent application may have significant payroll consequences.
Harassment & discrimination
Businesses need more than a policy stating that they “do not discriminate”. The new framework requires employers to take workplace rights and conduct seriously.
Businesses should have practical systems for:
- receiving workplace complaints;
- escalating allegations;
- investigating complaints appropriately;
- protecting employees from retaliation;
- recording outcomes; and
- training managers on workplace conduct.
A manager’s response to the first complaint can become as important as the underlying allegation.
Employee relations & disputes
The new Regulations make labour relations more procedural and give greater structure to trade union rights, collective bargaining and the management of employment disputes.
The Mediation and Arbitration Commission forms part of the new dispute-resolution framework.
Businesses should understand their obligations and the procedural framework in the Regulations when dealing with employee representatives, trade unions and collective employment issues.
They should establish appropriate procedures before a dispute arises.
Employment records & enforcement
Employee records need to tell the full story. Accurate employment records are now central to demonstrating compliance and should be treated as a substantive legal obligation.
Section 210 of the Employment Act and Schedule 4 of the Regulations prescribe the information employee records must contain.
Businesses should maintain the records required by the Act and the Employment and Labour Relations Regulations, 2026, including records relating to:
- employment;
- remuneration;
- working time;
- leave; and
- other matters prescribed by law.
The Regulations also contain specific record-keeping requirements for certain categories of workers.
For example, Regulation 12 requires employers of casual workers to maintain prescribed information, including:
- identification details;
- qualifications;
- wages; and
- hours worked.
Those records should be maintained securely and made available when required by the relevant labour authorities.
Informal HR practices create greater risk if decisions are later challenged or records are requested during an inspection.
The business owner’s takeaway
The ELRA and Regulations are not simply an update to the Employment Act.
They represent a shift towards a more structured, rights-based and evidence-driven employment environment.
Businesses that rely on informal HR practices, repeated fixed-term contracts, loosely classified contractors or undocumented management decisions may face increased exposure.
Businesses with clear contracts, sound policies, trained managers, reliable records and consistent processes will be better positioned to comply with the new framework and manage employment risk.
The practical test is:
Can we demonstrate what we decided, why we decided it, what process we followed and what evidence supports the decision?
If the answer is no, the business should treat that as a compliance gap.
Is your business ready?
Now is the time to conduct an employment-law and HR compliance review before your processes are tested by an employee dispute, labour inspection or restructuring exercise.
Download our FREE ELRA Implementation Tracker to help you keep track of your compliance.
This briefing is intended as general business information and should not be treated as legal advice. Specific employment decisions should be assessed against the Employment and Labour Relations Act, 2025, the Employment and Labour Relations Regulations, 2026, and any applicable codes, guidelines and related legislation.
