Amendments To the Employment Equity Act

The Department of Employment and Labour (DOL) has gazetted regulations for the implementation of Employment Equity and Sector Targets for each of 18 identified industry Sectors.

The DOL recently held roadshows to explain the new regulations and what is required from designated employers to comply with Employment Equity legislation.

Definitions provided in the regulations

Designated Employer: With effect from January 2025, a designated employer is one which employs 50 or more staff in either a permanent or temporary capacity.  Where a holding company controlling more than one registered entity may choose to submit a consolidated report supported by individual Employment Equity Plans for each of the registered entities included in the consolidated report.

EAP means the Economically Active Population as published in the CEE report annually

People with disabilities includes people who have a long-term or recurring physical, mental, intellectual or sensory impairment which, in interaction with various barriers, may substantially limit their prospects of entry into, or advancement in, employment, and ‘persons with disabilities’ has a corresponding meaning

Sector means an industry or service or part of any industry or service and

Temporary employee means employees who are employed for less than three months.

WHAT IS REQUIRED

1. All designated employees must prepare a five-year Employment Equity Plan which runs from 1 September 2025 to 31 August 2030 using the required template (EEA13).
2. All designated employees must carry out a quantitative and qualitative analysis in order to assist them in preparing for the plan using the required template (EEA12).
3. All designated employees must ensure that their numerical goals take into account the Sector Targets applicable to their industry and where they operate in more than one industry, they are advised to select the industry that the majority of their employees are working in.
4. n planning their Sector Targets, designated employers should plan to reduce the number of employees where there is over-representation of the EAP. 

GUIDELINES FROM THE DOL WORKSHOPS

1. The DOL has stressed that no-one should be dismissed or retrenched to meet EE Plan targets.
2. Companies should plan to meet the sector targets, but if they are unable to meet them, they need to have an acceptable reason for this.  Acceptable reasons provided in the regulations for not planning to achieve the targets are:
   • The inherent requirements of a particular job
   • The pool of suitably qualified persons
   • The formal qualifications, prior learning, relevant experience or capacity to acquire, within a reasonable time, the ability to do the job
   • The rate of turnover and natural attrition within the workplace and
   • Recruitment and promotional trends within a workplace
3. The process of doing online submissions will have an initial filtering process.  Companies who have 49 employees or fewer will not be able to submit a report.  The option for voluntary submissions has been removed from the EE Act.
4. All designated employers will annually be able to apply online for an EE Compliance certificate issued in terms of section 53 of the EEA Act to certify that they have complied with chapter II and chapter III of the Act, confirm that there are no CCMA awards for discrimination against the Company and that they are complying with the National Minimum Wage Act.  However, if they have failed to meet their annual numerical targets that have been set against the Sector Targets, they must give reasons for failing to do so. 
   
   Justifiable reasons are:
   • Insufficient recruitment opportunities
   • Insufficient promotion opportunities
   • Insufficient target individuals from designated groups with relevant qualifications, experience etc.
   • The impact of a CCMA award or court order (for discrimination);
   • A transfer of a business
   • Mergers or acquisitions and/or
   • The impact of economic conditions on the business
5. Non-designated employees will also be able to apply for a compliance certificate but will have to show that they have complied with Chapter II of the Act (there are no CCMA awards for discrimination against the Company) as well as compliance with the National Minimum Wage Act.
6.  
   Non-designated employers who have never submitted an Employment Equity report and therefore do not have an EE Number will still be able to apply for a certificate of compliance.  We will test the system once it is live which will be from 1 September 2025.
7. The DOL is employing more inspectors so we can expect more DG reviews going forward.
   

URGENT ACTIVITIES FOR JULY / AUGUST 2025

Designated employers, in consultation with their EE Committees, must carry out a qualitative and quantitative analysis.

Once this is completed, designated employers must redo their Employment Equity Plans for the new 5-year period, ensuring that Sector Targets and the EAP are taken into account.

Consultation with the EE Committee with regard to plans must be completed before 31 August 2025 so that approved plans are in place by 1 September 2025.

ACTIVITIES AFTER SEPTEMBER

Employment Equity Reports (EEA2 and EEA4) must be prepared using the revised format and submitted online by 15 January 2026 and manually by 30 September 2025.

Certificates of compliance must be applied for.  This can be applied for online as soon as the report is submitted.  The system for reporting will open on 1 September 2025.

Non-Designated Employers do not need to take any action to deregister.  Their EE number will remain on the system so that they can apply for certificates of compliance.

The DOL will, on an annual basis from 1 September of every year, issue a Reminder Letter for reporting purposes to all Employers registered for Employment Equity Reporting. The letter will contain a link to confirm whether your company is a Designated or Non-Designated Employer.

The sectors for which targets have been gazetted are:

1. Accommodation and Food Service Activities
2. Administrative and Support Activities
3. Agriculture, Forestry & Fishing
4. Arts, Entertainment, and Recreation
5. Construction
6. Education
7. Electricity, Gas, Steam, and Air Conditioning Supply
8. Financial and Insurance Activities
9. Human Health and Social Work Activities
10. Information and Communication
11. Manufacturing
12. Mining and Quarrying
13. Professional, Scientific and Technical Activities
14. Public Administration and Defence; Compulsory Social Security
15. Real Estate Activities
16. Transportation and Storage
17. Water Supply, Sewerage, Waste Management and Remediation Activities
18. Wholesale and Retail Trade; Repair of Motor Vehicles and Motorcycles

Please contact the office if you have any questions or require further information.