Significant amendments to South Africa’s Employment Equity Act (EEA) have come into effect as of January 1, 2025, introducing pivotal changes aimed at streamlining compliance requirements and promoting equitable representation across various sectors. BusinessTech
Designated Employer
A central modification is the redefinition of ‘designated employer.’ Previously, this classification encompassed employers with more than 50 employees or those whose annual turnover exceeded specific sectoral thresholds. The recent amendments have eliminated the turnover criterion, stipulating that only employers with more than 50 employees qualify as designated employers. This change is designed to alleviate the regulatory burden on small businesses, exempting those with 50 or fewer employees from the affirmative action obligations mandated by the EEA.
Sectoral Numerical Targets
The amendments empower the Minister of Employment and Labour to set sector-specific numerical targets to ensure equitable representation of designated groups—including African, Coloured, and Indian individuals, women, and people with disabilities—across all occupational levels. Designated employers are now required to align their employment equity plans with these sectoral targets. While draft regulations have been proposed, the final targets are pending, leading to anticipation among various industries. Polity
Compliance and Certification
To secure a certificate of compliance—necessary for conducting business with government entities—designated employers must meet the established sectoral targets or provide reasonable grounds for non-compliance. This certification process underscores the government’s commitment to enforcing employment equity standards within public sector collaborations. DLA Piper
People with Disabilities
The amendments have broadened the definition of ‘people with disabilities’ to include individuals with long-term or recurring physical, mental, intellectual, or sensory impairments that substantially limit their employment prospects. This inclusive approach aims to enhance workplace diversity and accessibility.
Implications for Employers
Employers with fewer than 50 employees are now relieved from the affirmative action provisions of the EEA, including the development and submission of employment equity plans and reports. Conversely, employers exceeding this threshold must ensure compliance with the new sectoral targets and reporting obligations to avoid potential penalties and to maintain eligibility for government contracts. Cliffe Dekker Hofmey
These amendments reflect a strategic effort by the South African government to balance regulatory compliance with the operational capacities of businesses, while steadfastly promoting equitable representation and diversity within the workforce.