On 6 April 2023, President Cyril Ramaphosa signed into law the Employment Equity Amendment Act 4 of 2022, which introduces amendments to the existing Employment Equity Act 55 of 1998. The amendments are however not yet in force and the effective date is still to be announced.
The primary objective of this Act is to promote equal opportunity and fair representation in the workplace, ensuring that employers implement affirmative action measures to address historical discrimination experienced by designated groups.
The Employment Equity Act applies to all employees and employers operating within South Africa (excluding the South African National Defence Force, National Intelligence Agency and South African Secret Service), whilst a certain section of the Act only applies to ‘designated employers’.
Changes to the definition of designated employers –
The definition of ‘designated employer’ has been amended with the effect that only employers with 50 or more employees will be regarded as designated, regardless of their annual turnover. This will reduce some administrative strain from smaller employers, not annually having to submit its EEA reports.
Numerical targets to be set –
An important amendment to the Act is the Minister’s power to now determine sectoral numerical targets for designated employers. The numerical goals set by an employer in its EE plan must comply with any sectoral numerical target applicable. The purpose of the numerical targets is to ensure equitable representation from people in designated groups, within the workplace.
Certificate of Compliance –
Companies doing work for the State will need to submit a Certificate of Compliance issued by the Department of Employment and Labour, that will confirm their compliance with the Act and its objectives.
To ensure EE compliance in your company and for more information on the above, it is advised that you contact a specialist to consult on all amendments that will have an impact on your business.