Legal updates and opinions
News / News
Salary discrimination not automatically unfair
Unfair discrimination on the basis of an inequality in pay – between male and female staff, or staff of different ethnic or racial groups or any other arbitrary ground – is unlawful in terms of the Employment Equity Act.
But the opposite position – that there can be fair discrimination – also applies.
Even if there is a difference between pay or terms and conditions (which legally would be recognised as the employer discriminating between an employer and another, comparator employee), this discrimination may not always be unfair and a conclusion of inequality cannot automatically be drawn.
Certainly, if an employee complained of pay discrimination and was female for example, and otherwise of the same status, seniority, experience level and educational qualification as a comparator male employee, the reason for the difference may be solely the fact that she is female.
This would be unfair discrimination, due to pay inequality, where the employees being compared perform the same work. However, the Employment Equity Act recognises all (and more) of the above factors, such as status, seniority, experience level and educational qualification, as fair reasons to justify the difference. Even though there may be a difference, it is not due to the first employee’s gender, and is therefore not unfair.
An additional factor that the Labour Court has recently taken into account, in determining whether a difference between a male and female employee is fair or unfair, is the “market forces defence.”
This position takes into account that one employee (in this case a male), had more years of service and seniority and a higher Private Security Industry Regulatory Authority (PSIRA) grade (relevant for the employer in this case).
The court recognised that he could command a higher salary due to these factors, and that the employer had paid him more than another female employee in a similar position because he asked for a higher salary based on his market value. The difference was found to be not unfair. Employers must be aware that this sensitive issue must be assessed on each case, and the mere fact that a difference exists, does not mean it is unfair.
Latest News
Intention to deem all performers in advertising, artistic and cultural activities as employees
by Andre van Heerden, Director, Jacques van Wyk, Director, Hannah Fowler, Candidate Attorney and Mikayla Ehrenreich, Candidate Attorney On 23 [...]
Publicly available information and your privacy: How South African law really works
Download Article By Ahmore Burger-Smidt – Director and Head of Regulatory 'Instagram' is great if you want to share [...]
A Catalyst for Economic Growth – Proposed Amendments to South Africa’s Merger Thresholds
by Ahmore Burger-Smidt, Director and Head of Regulatory On 27 January 2026, Minister of Trade, Industry and Competition, Mr Parks [...]
Privacy Day 2026: Moving beyond the consent myth under POPIA
DOWNLOAD PDF South Africa’s Protection of Personal Information Act, 2013 ("POPIA") provides multiple lawful bases for processing personal [...]
Back to the Future – Amendment of Rule 18 of the Ethical Rules leaves practitioners in uncertain territory
By Neil Kirby - Director and Head of Healthcare & Life Sciences, Slade van Rooyen - Associate and Farah Yassin [...]
Code Red to Code Regulated: South Africa’s Data, AI and Cybersecurity Shift in 2025, and What’s to Come in 2026?
by Armand Swart, Director, Hlonelwa Lutuli, Associate and Hanán Jeppie, Candidate Attorney South Africa's data protection, cybersecurity, and artificial intelligence [...]
