The Minister of Employment and Labour has officially gazetted the Employment Equity Act Amendments, ushering in a new era of workplace transformation in South Africa. These amendments, set to take effect on 1 January 2025, introduce significant changes to the Employment Equity landscape. At BEE123, we’re dedicated to helping you navigate these changes and ensure continued compliance.

Key Amendments Coming into Effect:

While some aspects are still being finalized, here’s a breakdown of the key amendments based on the February 2024 drafts:

1. Designated Employer Definition (Section 1):

• The criteria for designated employers has been revised. Moving forward, only employers with 50 or more employees will fall under this definition.
• The definition of “disabled employee” has been expanded to include individuals with intellectual and sensory impairments, promoting greater inclusivity in the workplace.

2. Sectoral Numerical Targets (Section 15A):

• The Minister now has the power to set specific numerical targets for different sectors or parts of sectors. This means your industry may have unique targets to meet.
• Designated employers will need to align their Employment Equity plans with either national or provincial EAP demographics, depending on their area of operation. It’s crucial to choose one and stick with it for the entire duration of your EE plan.
• While adhering to sectoral targets, designated employers must still implement 5-year numerical goals and annual targets for semi-skilled and unskilled levels (Section 20(c)) within their EE plan.

3. Justifiable Reasons for Non-Compliance (Section 16):

• The amendments provide a clearer framework for justifiable reasons for not meeting numerical targets. These include:
  • Insufficient recruitment or promotion opportunities
  • Lack of qualified individuals from designated groups
  • Court orders
  • Business transfers, mergers, or acquisitions
  • Impact on business economic circumstances

4. Compliance Certificates (Section 53):

• Obtaining a Certificate of Compliance is now linked to meeting sectoral numerical targets (or providing justifiable reasons for non-compliance), submitting annual EE reports, and demonstrating a record free from unfair discrimination findings or national minimum wage violations.
• These certificates will be essential for employers seeking to do business with the state.

5. Other Important Sections:

• Several other sections are undergoing revisions, including those related to the Employment Conditions Commission (Section 8), annual reporting requirements (Section 21), addressing income differentials (Section 27), compliance orders (Sections 36 & 37), and assessment criteria (Section 42). We will provide updates on these sections as more information becomes available.
• Schedule 4 of the Employment Equity Act, which required employers employing less than 50 employees to still report as designated employers, will be revoked and only employers employing more than 50 employees will be designated under Chapter 3 in the new dispensation.

Important Note:

These amendments do not affect your current Employment Equity reporting obligations for 2024. All designated employers must continue to submit their reports according to the existing legal framework.

Stay Ahead of the Curve with EE123

At EE123, we’re committed to providing you with the tools and expertise you need to navigate these changes seamlessly. Our EE123 software simplifies complex calculations, ensures accurate reporting, and helps you stay compliant with the latest legislation. Our team of expert advisors is also available to answer your questions and provide guidance every step of the way.

Contact us today to learn more about how EE123 can support your organization’s Employment Equity journey.