Employment Equity Act amendments to come into effect on 1 January 2025

The Minister of Employment and Labour has announced that the Employment Equity (EE) Amendment Act will come into effect on 1 January 2025.

Minster Nomakhosazana Meth made the announcement earlier in December.

Two changes were made to the Act, with one aimed at easing the burden on small employers to help them focus on job creation.

Employment Equity Amendment Act

The initial implementation of the Act was in 1998. According to the department’s website, the Act aims to promote fairness and equality in the workplace by eliminating unfair discrimination, promoting equal opportunities, and addressing historical imbalances.

It is the employers’ responsibility to identify areas of unfair discrimination and inequality in their workplace. Through the Act, there could be a fair and inclusive workplace, increased diversity, and improved competitiveness.  

Amendments to the Employment Equity Act

The department said small businesses that employ less than 50 employees are no longer required to comply with Chapter Three of the Act.

“For example, in relation to the submission of their EE reports starting from 2025 EE Reporting period.

“In terms of the 2024 EE report submission, which closes on 15 January 2025, employers must use the current legislation (EEA) to comply with the reporting requirements as per section 21 of the EEA.”

Another change is the introduction of sectoral numerical targets. The Minister is expected to set numerical targets for different sectors to ensure equitable representation of historically disadvantaged groups.

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Main objectives of the amendment

The department added that the main objectives of the amendment include “to strengthen compliance, including the issuing of EE compliance certificates”.

“In the next 2025 EE reporting cycle starting on 1 September 2025, employers will have to use the published EE amended legislation to submit their EE reports. We hope that the new amendments to Employment Equity will impact positively on job creation and the unemployment rate,” said Meth. 

Controversial part of the act

Employment law experts have labelled the sectoral targets as “the most controversial of all the amendments by far”. 

Melissa Cogger, partner at Bowmans law firm said once sectoral targets are published in their final form, designated employers will need to review their employment equity plans to ensure that their numerical targets and goals align with any sectoral targets.

“Once the amendments are effective, the Minister will be empowered to identify sectors by government gazette, consult with the relevant sectors and issue a draft notice for public comment in respect of the identification of sectors and the setting of sectoral targets before publishing a final version.”

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Annual turnover

Previously, if the business had an annual turnover of a certain amount, they were required to comply with the Act, despite the number of employees they had. This will change, as there will no longer be any consideration given to an employer’s total annual turnover.

The act has also amended the definition of ‘disabilities’. Cogger said the definition will now include people with intellectual or sensory impairments which may substantially limit their entry into or advancement in employment.

There has also been an amendment to psychological testing. The previous role of the Health Professions Council (HPC) in certifying psychological assessments will fall away.

“This amendment sought to address the capacity constraints of the HPC.”

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