In January, we reported on the operationalisation of the Employment Equity Amendment Act, which introduces sectoral targets for designated employers – businesses with 50 or more employees – and those seeing to conduct business with government. Pursuant to this, the much-anticipated Employment Equity Regulations and Determination of Sectoral Numerical Targets, which apply to 18 national economic sectors, recently took effect.
Intended to ensure equitable representation of qualified individuals at all occupational levels, designated employers are now mandated to create and implement a fixed five-year Employment Equity Plan, which runs from 1st September 2025 – 31st August 2030, in line with sector-specific numerical targets. Over and above this, the submission of annual equity reports remains compulsory.
Designed to enhance statutory compliance, an Employment Equity Plan must be informed by various factors, including a designated employer’s sector-specific numerical targets, Employee Assistance Programmes, labour profile, number of suitably qualified personnel, job requirements, recruitment, and turnover rates. In instances where an employer fails to meet the relevant target, a reasonable justification is required, i.e. a skills shortage or lack of recruitment opportunities. For employers who operate across sectors, the numerical targets of the sector in which most of their employees are employed must be applied.
Additionally, both designated and non-designated employers intending to conduct business with the state must apply online for an Employment Equity Compliance Certificate, which is valid for 12 months. Crucially, the Department of Employment and Labour is empowered to revoke a certificate that was issued under false pretences.
In light of these requirements, designated employers are urged to correctly identify their applicable sector, diligently review and revise their internal employment equity policies to align with sector-specific numerical targets, and devise achievable annual targets.
For expert legal assistance with any employment or labour-related matter, contact our experienced specialists at labour@stbb.co.za.
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