Breaking News: Employment Equity Amendment Act Coming into Effect January 2025

The Department of Employment and Labour has officially announced that critical amendments to the Employment Equity Amendment Act (EEA) will come into effect on 1 January 2025. These changes bring significant updates to compliance requirements and introduce new obligations for employers across South Africa.

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What Are the Key Changes?   

The amendments to the Employment Equity Act will affect both designated employers and non-designated employers seeking to engage in state business. Here’s an overview of what’s changing:

1. Sectoral Targets  

• The Minister of Labour will be empowered to set numerical targets for representation across specific sectors and occupational levels.

• Employers must align their Employment Equity Plans with these sectoral targets or provide justifiable reasons for non-compliance.  

• Draft sectoral targets have already been published for public comment, with the final targets expected to follow soon.

 2. Updated Definitions  

• The definition of “disabilities” has been updated to align with the UN Convention on the Rights of Persons with Disabilities, broadening its scope to include intellectual and sensory impairments.  

• The definition of “designated employers” now applies to employers with 50 or more employees, regardless of turnover.

 3. Compliance Certificates for State Contracts  

• Employers wishing to conduct business with the state must obtain a compliance certificate. This requires compliance with sectoral targets, submission of EE reports, and no recent findings of unfair discrimination or wage violations.

 4. Changes to Reporting Requirements  

• The October deadline for submitting EE reports has been removed. Employers will now submit reports within prescribed timeframes, with flexibility to notify the Director-General in case of delays.

 5. Enhanced Enforcement Powers for Labour Inspectors  

• Inspectors now have broader authority to enforce compliance, request written undertakings, and serve compliance orders.  

 6. Voluntary Compliance Removed  

• Section 14 of the EEA, which allowed non-designated employers to voluntarily comply with affirmative action provisions, has been repealed.

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 How Does This Impact Employers? 

If you are a designated employer or wish to do business with the state, these amendments will require careful planning and action. Employers will need to:  

• Align their workforce representation goals with sectoral targets once finalized.  

• Update their Employment Equity Plans to reflect new requirements.  

• Ensure all reporting and compliance certificates are up-to-date to avoid penalties.  

Employers not currently considered “designated” should also review their status under the new definitions to determine whether they fall under the scope of the EEA.

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 What Should Employers Do Now? 

While the final regulations and sectoral targets are still pending, here are a few steps you can take to prepare:  

1. Review Your Current EE Plan: Take stock of your current plan and identify areas that may require alignment with sectoral targets once finalized.  

2. Engage with Stakeholders: Begin consultations with employees, trade unions, and other stakeholders to ensure readiness.  

3. Stay Informed: Keep an eye on updates from the Department of Employment and Labour to ensure you are aware of all deadlines and requirements.  

For a full breakdown of the proclamation and amendments, you can view the Proclamation Notice here.

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 Why Compliance Matters   

Compliance with the amended EEA isn’t just about avoiding penalties—it’s an opportunity to foster diversity, inclusion, and fairness in the workplace. By aligning your business with these changes, you not only meet your legal obligations but also position your company as a progressive and socially responsible employer.

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Need Assistance with Employment Equity Compliance? 

Navigating the complexities of Employment Equity compliance can be overwhelming, but you don’t have to do it alone. At Chamlabour, our team of specialist consultants is ready to help you prepare for these legislative changes.

From drafting or reviewing your EE Plans, to providing advice on ensuring that entities fully comply with sectoral targets, we’re here to guide you every step of the way.  

Don’t wait until it’s too late! Contact us today to ensure your business is compliant, competitive, and prepared for 2025. Together, let’s shape a diverse and inclusive workforce for South Africa.  

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Stay informed – be compliant.