Employers get more responsibilities amid equity amendments
Employers must prepare and implement their Employment Equity Plans and set numerical goals aligned with five-year sectoral targets by 31 August 2025.
The department of employment and labour has intensified its efforts to ensure that workplace transformation and employment equity remain at the forefront in South Africa's labour landscape.
In light of recent amendments to the Employment Equity Act (EEA) and the sectoral numerical targets which became effective on 15 April, employers are required to implement more robust measures to remain compliant with the new legislative framework.
The department has identified 18 national economic sectors and set specific numerical
Employment equity planning and reporting
Designated employers are obligated to prepare and implement their Employment Equity Plans (EEPs) and set numerical goals aligned with five-year sectoral targets by 31 August 2025. The revised reporting cycle for sector targets will then run from 1 September 2025 to 31 August 2030.
Employers who become designated employers after 1 April 2025 must prepare an EEP for the remainder of the period until 31 August 2030. A designated employer must refer to the relevant codes of good practice issued in terms of section 54 of the Act when preparing an EEP.
New EEPs must be informed by both qualitative and quantitative analyses, with affirmative action measures designed to achieve the numerical goals and sectoral targets. Recruitment, promotions and workforce planning should be aligned accordingly.
Justification of non-compliance
The 2025 regulations outline the reasonable grounds an employer can rely on to justify non-compliance with sectoral numerical targets. But the burden of proof rests with the employer. Should non-compliance be challenged, the employer must be able to substantiate its position with clear, documented evidence.
The following are recognised as justifiable reasonable grounds for non-compliance:
Insufficient recruitment opportunities;
Insufficient promotion opportunities;
Insufficient target individuals from designated groups with the relevant formal qualifications, prior learning, relevant experience or capacity to acquire, within a reasonable time, the ability to do the job;
Effect of a Commission for Conciliation, Mediation and Arbitration (CCMA) award or court order;
Effect of a transfer of business;
Effect of a mergers or acquisitions; and
Effect of economic circumstances affecting the business.
It is unlikely that grounds for non-compliance will be accepted at face value. Companies should expect an interrogation on whether the grounds are reasonable to justify non-compliance. Unjustified non-compliance might result in disqualification from state contracts, financial penalties and potential reputational harm.
Employers are therefore encouraged to maintain comprehensive records and strengthen administrative processes to support any defence of non-compliance.
Compliance certificate: State contracts
Amendments to section 53 of the EEA introduce enhanced compliance obligations for employers doing business with the state. Designated employers must obtain a certificate of compliance from the minister of employment and labour to qualify for state contracts. The minister can issue such a certificate only if satisfied that the employer has:
Complied with applicable sectoral targets;
Provided a reasonable justification for any target not met;
Submitted the required report in terms of section 21;
Not had a finding against it by the CCMA or a court in the past 12 months that the employer breached the prohibition on for unfair discrimination under Chapter 2; and
Not had a CCMA award issued against it in the past 12 months for failing to pay the minimum wage under the National Minimum Wage Act of 2018.
Administrative oversight and record-keeping
Given the stricter compliance framework, employers must enhance their administrative processes and maintain detailed records of all documentation, analyses and implementation efforts. This is especially critical where an employer might rely on justifiable grounds for non-compliance.
Upskilling forums and line management
Effective employment equity implementation relies on well-informed and empowered decision-makers. Employers must prioritise the training and upskilling of line managers and employment equity forum representatives, particularly those involved in recruitment and promotion processes.
It is equally important to establish and support representative forums with adequately trained members. These forums play a key role in championing diversity, inclusion and meaningful transformation within the workplace.
Expanded definition of disability
The definition of 'people with disabilities' has been expanded to include people with long-term or recurring physical, mental, intellectual or sensory impairments that might substantially limit their prospects of entry or advancement in the workplace. In line with this, the proposed employment equity target for persons with disabilities has been increased to 3%.
Employers might need to update their EEA1 declaration forms and internal processes to ensure accurate self-identification and representation in their EEPs.
Next steps for employers
Given the scope and implications of the recent amendments, employers are advised to:
Begin reviewing and updating their EEPs;
Enhance record-keeping and administrative oversight to prepare for audits and compliance reviews;
Proactively upskill line managers and forum representatives;
Align workforce planning strategies with sectoral targets; and
Ensure systems are in place to meet the compliance certificate requirements.
The amendments send a clear message — employment equity is not a tick-box exercise but a fundamental element of doing business in South Africa. Employers must act now to future-proof their compliance and support meaningful workplace transformation.
Dhevarsha Ramjettan is a partner, Kanyiso Kezile a trainee attorney and Mufaro Sambaza a candidate attorney at Webber Wentzel.
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