Update on Sectoral Targets and Employment Equity Amendment Act Implementation

The Department of Employment and Labour (DEL) has been actively engaging stakeholders to discuss the implementation of the Employment Equity Amendment Act (EEAA) of 2022 and the establishment of sector-specific employment equity (EE) targets. These consultations, held in February 2025, focused on finalizing EE targets to promote equitable workforce representation in South Africa.

Key Updates from the Consultations

Persons with Disabilities Target

One of the significant updates is the proposed increase in the employment target for persons with disabilities from 2% to 3% across all sectors. This reflects the government’s commitment to greater inclusivity in the workplace.

Revised Sectoral Targets

The proposed 2024 sectoral targets have been significantly increased compared to previous drafts. This adjustment highlights the DEL’s intensified efforts to accelerate workplace transformation.

Compliance Criteria for Employers

The EEAA outlines different compliance requirements based on employer size:

Non-Designated Employers (1–49 employees)

Although reporting is not mandatory, these employers can apply for a compliance certificate, provided they meet the following criteria:

• Adherence to the National Minimum Wage (NMW) or possession of an approved exemption for the preceding 12 months.
• No adverse awards from the Commission for Conciliation, Mediation, and Arbitration (CCMA) related to unfair discrimination in the past year.

Designated Employers (50 or more employees)

To remain compliant, designated employers must:

• Submit the Annual EE Report (EEA2 and EEA4 forms) on time.
• Show progress toward annual EE targets aligned with the 5-year sector-specific EE objectives or provide justifiable reasons for deviations.
• Comply with the NMW Act for the previous 12 months.
• Ensure there are no CCMA rulings against them for unfair discrimination within the last year.

Implementation Phases of the EE Amendment Act, 2022

The Department of Employment and Labour has set a structured approach for the EEAA’s rollout:

1. Finalisation of Sector EE Targets

• Stakeholder consultations will be completed by the end of February 2025.

2. Publication of EE Regulations

• By March 2025, two sets of regulations will be released:
  • General Administrative Regulations: Covering EE reporting forms, plan templates, enforcement mechanisms, and compliance certificate formats.
  • Regulations on 5-Year Sector EE Targets: Defining the specific targets for each sector.

3. National EE Awareness & Training Workshops

• Between May and June 2025, nationwide workshops will be conducted to provide guidance on the amendments and the online reporting system.

4. Alignment of EE Plans

• From April to 31 August 2025, designated employers will need to analyze their workplaces and develop EE plans aligned with the new amendments and sector targets.
• The new 5-year EE plan reporting period will run from 1 September 2025 to 31 August 2030.

5. EE Reporting Period for 2025

• Between 1 September 2025 and 15 January 2026, employers will submit their baseline EE reports (EEA2 & EEA4 forms).
• The first EE Certificates of Compliance will be issued to qualifying employers during this period.

6. First Annual EE Target Assessment (2026 Reporting Period)

• From 1 September 2026 to 15 January 2027, the DEL will conduct an initial review of annual EE targets to assess progress toward achieving the 5-year sector-specific goals.

Final Thoughts

These developments reinforce the DEL’s dedication to fostering equitable representation within South Africa’s workforce. Employers are encouraged to engage with these changes proactively to align their policies and practices with the new regulations, ensuring a smooth transition.

There are justifiable reasons for non-compliance with the Annual EE targets, which will be explored in an upcoming article.