Botswana’s business community is bracing for a new wave of employment costs, administrative obligations and operational restrictions ahead of the Employment and Labour Relations Act coming into force on September 1st this year. Through their advocacy group, Business Botswana, they have warned that the law could hit already struggling businesses hard.
The organisation has described the legislation as a heavily “anti-business Law.” It argues that its implementation in its current form could undermine investment, productivity, employment and economic growth at a time when Botswana desperately needs private-sector-led recovery and job creation.
The Employment and Labour Relations Act, 2025 was passed by Parliament on 15 July 2025, assented to by President Duma Boko on November 27, 2025 and gazetted on December 1, 2025.
Business Botswana says the Tripartite Partners which include ggovernment, trade unions BOFEPUSU and BFTU and the employers’ body have now agreed that the law should commence on 1 September.
But the agreement has not erased deep divisions over the legislation.
“We are aware that this critical legislation has consequential implications on Botswana’s business landscape, with new requirements that have the potential to adversely affect viability of certain business operations,” Business Botswana said.
The organisation warned that putting the law into operation without further adjustments could have serious consequences for businesses, particularly micro, small and medium enterprises and informal operators.
“Operationalising it in its current unbalanced state could be catastrophic,” Business Botswana said.
The organization expressed concern that the potential financial, administrative and operational burdens created by the new legal framework.
The organisation said the law could undermine efforts to achieve a “production-led recovery” and create jobs, particularly if employers are forced to divert resources towards compliance rather than investment and expansion. Business Botswana said the tripartite partners have recently been meeting to discuss regulations needed to operationalise the Act but failed to reach consensus on some issues.
Business Botswana argues that these obligations could increase the cost of doing business, weaken the viability of some sectors and erode what it describes as Botswana’s already minimal competitiveness advantage.
The organisation said the law could undermine efforts to achieve a “production-led recovery” and create jobs, particularly if employers are forced to divert resources towards compliance rather than investment and expansion. Business Botswana said the tripartite partners have recently been meeting to discuss regulations needed to operationalise the Act but failed to reach consensus on some issues. The organisation said Government has assured the private sector that the founding regulations will be made available before commencement of the Act and that amendments can be made where necessary.
Monthly tripartite meetings are expected to begin after commencement to identify and address implementation problems. Business Botswana said it would use the meetings to push for changes where the law creates unintended consequences. It is also preparing a “Know Your Labour Law” programme, in partnership with stakeholders including the International Labour Organisation, to help businesses understand the new requirements. It is also urging companies to prepare for the September deadline rather than wait for further changes. Employers have been advised to align new employment contracts with the Act, audit their operations for compliance gaps and develop detailed compliance roadmaps.
Among the areas requiring attention are expanded protections against discrimination and harassment, mandatory complaint procedures, child-labour requirements and documentation relating to voluntariness in employment contracts. Businesses will also have to upgrade human-resource systems to track enhanced leave entitlements, union-dues deductions and records required for labour inspections. Operational protocols will also be required for welfare audits, 30-day shutdown notices, mediation of disputes and 21-day appeals against directives.
Business Botswana stressed that existing employment contracts remain valid until their stipulated end dates, meaning companies do not necessarily have to rewrite every existing agreement immediately.
However, new contracts will have to reflect the new legal environment.
The organisation is calling on companies to document sector-specific impacts and feed them into the tripartite process as it argues that evidence from businesses will strengthen demands for amendments.
“We therefore call upon members to join collective efforts to push for a practicable law and share sector-specific impact assessments to strengthen our evidence-based submissions,” it said.
Business Botswana insists it is not opposed to labour protection, but wants a framework it considers balanced, predictable and economically sustainable.
