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THE NEDLAC ACT
Act No. 35 of 1994:
National Economic Development and Labour Council Act, 1994
ACT
To provide for the establishment of a national economic, development and labour council; to
repeal certain provisions of the Labour Relations Act, 1959; and to provide for matters connected
therewith.
(English text signed by the President.)
(Assented to 23 November 1994.)
BE IT ENACTED by the Parliament of the Republic of South Africa, as follows:-
Definitions
1. In this Act, unless the context otherwise indicates-
(i) “Council” means the National Economic, Development and Labour Council established
by section 2; (ix)
(ii) “Minister” means the Minister of Labour; (v)
(iii) “National Manpower Commission” means the Commission established by section 2A
of the Labour Relations Act, 1956 (Act No. 28 of 1956); (vi)
(iv) “national summit” means the annual meeting of representatives of organised
business, organised labour, organisations of community and development interests, the
State and interested parties convened by the Council in terms of section 7; (vii)
(v) “organisations of community and development interests” means those non-
governmental organisations identified by the Minist er without Portfolio in the Office of the
President in terms of section 3(5) as re presenting community interests relating to
reconstruction and development; (viii)
(vi) “organised business” means business re presented by those employer and business
associations and federations of such associat ions that are the founding parties of the
Council and any association that is admitted thereafter; (ii)
(vii) “organised labour” means the federati ons of trade unions that are the founding
parties of the Council and any association that is admitted thereafter; (i)
(viii) “socio and economic policy” includes financial, fiscal and monetary policy, socio-
economic programmes, trade and industrial policy, reconstruction and development
programmes and all aspects of labour market policy, including training and human
resource development; (iv)
(ix) “this Act” includes any regulation made under section 10. (iii)
Establishment of National Economic, Development and
Labour Council
2.
(1) There is hereby establish a council to be known as the National Economic, Development and
Labour Council.

(2) The Council shall be governed by an executive council and shall in addition consist of four
chambers, namely-
(a) a public finance and monetary policy chamber;
(b) a trade and industry chamber;
(c) a labour market chamber; and
(d) a development chamber.
(3) The Council shall be a juristic person.
Membership of Council
3.
(1) The Council shall consist of-
(a) members who represent organised business;
(b) members who represent organised labour;
(c) members who represent organised community and development interests;
(d) members who represent the State.
(2) The members referred to in subsection 1(a) shall be appointed by the Minister on
nominations made by organised business.
(3) The members referred to in subsection 1(b) shall be appointed by the Minister on
nominations made by organised labour.
(4) The members referred to in subsection 1(c) shall be appointed by the Minister without
Portfolio in the Office of the President fr om persons nominated by the organisations of
community and development interest identified by the Minister without Portfolio in the
Office of the President in terms of subsection (5).
(5) The Minister without Portfolio in the Office of President shall in consultation with the
executive council identify organisations of community and development interest that-
(a) represent a significant community interest on a national basis;
(b) have a direct interest in reconstruction and development; and
(c) are constituted democratically.
(6) The President shall appoint the member s referred to in subsection (1)(d).
(7) The members appointed in terms of subsections (2), (3), (4) and (6) shall hold office in
accordance with the constitution of the Council.
Constitution of Council
4. Subject to the provisions of this Act, the constitution of the Council shall provide for-
(a) the manner in which organised business may nominate persons for appointment as
members and the manner in which members may be removed;
(b) the manner in which organised labour may nominate persons for appointment as
members and the manner in which members may be removed;
(c) the criteria by which and manner in which organised business shall admit employers
and business associations or federations of such associations;
(d) the criteria by which and manner in whic h organised labour shall admit federations of
trade unions;
(e) the appointment of alternates to members;
(f) the appointment of ex officio members of the council in either a representative or

expert capacity;
(g) the removal of members;
(h) the appointment, removal, duties and powers of the chairpersons, office-bearers and
officials;
(i) the establishment, composition, and functions of the executive council;
(j) the establishment, composition, powers and functioning of the chambers;
(k) the establishment, composition, powers and functioning of committees, including a
management committee, of the Council;
(l) the convening of, quorum for and conduct of meetings of the executive council,
chambers and committees;
(m) the convening of, the chairpersonship o f, and the criteria for the participation of
organised business, organised labour, organisations of community and development
interest and other interested parties in, the national summit;
(n) the keeping of minutes;
(o) the manner in which decisions are taken;
(p) the amendment of the constitution;
(q) any other matters necessary for or incide ntal to the performance of its functions.
Objects, powers and functions of Council
5.
(1) The Council shall-
(a) strive to promote the goals of economic growth, participation in economic
decision-making and social equity;
(b) seek to reach consensus and conclude agreements on matters pertaining to
social and economic policy;
(c) consider all proposed labour legislation relating to labour market policy before
it is introduced in Parliament;
(d) consider all significant changes to social and economic policy before it is
implemented or introduced in Parliament;
(e) encourage and promote the formulati on of co-ordinated policy on social and
economic matters.
(2) For the purpose of subsection (1), the Council-
(a) may make such investigations as it may consider necessary;
(b) shall continually survey and anal yse social and economic affairs;
(c) shall keep abreast of international developments in social and economic policy;
(d) shall continually evaluate the effectiveness of legislation and policy affecting social and
economic policy;
(e) may conduct research into social and economic policy;
(f) shall work in close co-operation with depart ments of State, statutory bodies, programmes and
other forums and non-governmental agencies engaged in the formulation and the implementation
of social and economic policy.
(3) Nothing in this section shall preclude the Co uncil from considering any matter pertaining to
social and economic policy.
Powers of executive council
6.
(1) The powers of the executive council shall be-

(a) to exercise and perform the powers and functions referred to in section 5;
(b) to agree to the constitution of the Council and amend it from time to time subject to the
provisions of this Act;
(c) to establish the chambers referred to in section 2(2);
(d) to establish committees, including a management co mmittee, to assist it in the exercise of its
powers and the performance of its functions and to delegate or assign such powers and functions
as it deems appropriate to such committees, and the chambers contemplated in paragraph (c);
(e) to conduct enquiries in the performance of its functions and the exer cise of its powers;
(f) generally, but subject to this Act, to exercise those powers and perform those functions as are
necessary to realise the ob jectives of the Council.
(2) The executive council may under its cons titution authorise any committee or person to
conduct enquiries and exercise the powers and perform the functions conf erred on the executive
council under this Act.
(3) The executive council shall develop convention s and regulate its relationships with Parliament
and its standing committees and the Ministries and Departments affected by the decisions of the
Council.
(4) The executive council shall develop rules and protocols for the conduct of relations with other
institutions engaged in the formulation or impl ementation of aspects of social and economic
policy.
(5) The executive council may develop codes of conduct to regulate the conduct of members and
representatives.
(6) The executive council shall appoint a secret ariat on such terms and conditions as it may
determine.
Duties of executive council
7.
(1) The executive council shall annually conven e a national summit of interested parties,
to report on and to consider the activities of the Council.
(2) The executive council shall as soon as possible after 31 December in each year
furnish the Minister with a report, incl uding an audited financial account and balance
sheets of the Council, in respect of its ac tivities and the state of social and economic
matters in the Republic during the year ending on that date.
(3) The Council shall be publicly funded and the executive council shall prepare an
annual budget for the financing of the Council for submission to the Minister by 1
September in each year for his or her approv al and the concurrence of the Minister of
Finance.
Reports
8. Any report of the Council, including the annual report or a report on any proposed
legislation or policy relating to or affecting social and economic matters shall be
submitted to the Minister and every such report shall as soon as practicable be laid upon
the Table of the Senate and of the National Assembly.
Amendment of laws and transitional measures
9.
(1) The Minister shall be the interim chairperson of the Council.
(2) The interim chairperson shall for the purposes of subsection (6) convene an inaugural
meeting of the Council by fixing a date, time and venue for such a meeting.
(3) The Minister shall invite the representatives of the employer and business
associations, federations or such associ ations and federations of trade unions

represented on the National Manpower Commission and the National Economic Forum to
attend the meeting.
(4) The Minister, in consultation with the Minister without Portfolio in the Office of the
President, shall invite persons who re present organisations of community and
development interests to attend the meeting.
(5) The President shall appoint the representa tives of the State to attend the inaugural
meeting.
(6) The duties of the inaugural meeting of the Council shall be to-
(a) adopt a constitution for the Council;
(b) appoint the chairpersons in terms of the cons titution and relieve the interim chairperson of his
or her duties;
(c) establish the chambers and the management committee and such other committees as are
prescribed by the constitution and appoint the members to such committees;
(d) confirm the appointment of a secretariat on such terms and conditions as it may determine.
(7) The provisions of the Act mentioned in the Sc hedule are hereby repealed with effect from the
date of the inaugural meeting referred to in subsection (2).
(8) For the purposes of section 33(5)(b) of the Constitution, the Council shall replace the National
Manpower Commission, which shall cease to exis t with effect from the date of the inaugural
meeting referred to in subsection (2), and from t hat date all rights, duties, assets and liabilities,
whether contractually or otherwise obtained or accu mulated in connection with matters entrusted
to that Commission, shall pass to the Council.
Regulations
10. The Minister in consultation with the executive council may make regulations prescribing-
(a) any matter which by this Act is required or permitted to be prescribed; and
(b) generally, all matters which he or she considers necessary or expedient to
prescribe in order to achieve the objects of this Act.
Offences
11.
(1) Any person who, except when required to do so before a court of law or under any law,
discloses any confidential information in regard to the financial or business affairs of any person,
business or firm, or the State, acquired in the exercise of his or her powers in the performance of
his or her duties under the Act or the constitution of the Council or its committees shall be guilty of
an offence.
(2) Any person who is convicted of an offence in terms of subsection (1) shall be liable to a fine
not exceeding R1 000.
Short title and commencement
12. This Act shall be called the National Ec onomic, Development and Labour Council Act, 1994,
and shall come into operation on a date fixed by the President by Proclamation in the Gazette.
SCHEDULE 1
Labour Relations Act, 1956 (Act No. 28 of 1956): Sections 2A to 2D, and definition of
“Commission” in section 1.