The Employment Equity Amendment Act (EEA) is set to be officially enacted on 1 January 2025. These amendments will significantly impact how businesses across South Africa manage employment equity and comply with transformation goals.
Here’s a summary of the key changes and what they mean for your business:
- Redefined “Designated Employer” Status
Companies with fewer than 50 employees will no longer be classified as designated employers. This means they will not be required to comply with Chapter 3 of the Act, which outlines affirmative action measures.
However, businesses in this category will still need to:
- Confirm their status by demonstrating their employee count.
- Comply with Chapter 2, which focuses on eliminating unfair discrimination and promoting equal opportunities within the workplace.
If you have fewer than 50 employees, it’s essential to ensure your company maintains compliance with these provisions, even though your designation status will change.
- Five-Year Sectoral Targets
One of the most notable changes is the introduction of sector-specific targets for designated employers. These targets will span five years and will apply across key occupational levels. Employers will need to align their employment equity plans with sectoral targets. It’s important to start assessing your workforce and setting goals accordingly. Companies can also choose to set targets for Semi-Skilled and Unskilled levels, though these are not mandatory.
2024 EE Reporting Obligations
While these changes will take effect in 2025, it’s important to note that all designated employers must still submit their Employment Equity reports for the 2024 reporting period in line with the current regulations. The 2024 reporting cycle will remain under the existing compliance framework, so make sure your reports are submitted in accordance with the current rules before the end of the year.
What Does This Mean for Your Business?
As these amendments are set to reshape the employment equity landscape, now is the time to start preparing. The changes will require companies to be more proactive in aligning their workforce with sectoral targets, ensuring compliance with anti-discrimination policies, and obtaining certification for doing business with the state.
Our team is closely monitoring these developments and will keep you informed as new regulations and guidelines are released.
Stay Tuned for More Updates
As we receive more information we will share key updates and provide actionable advice on how your business can remain compliant. Our goal is to make this transition as smooth and effective as possible for you.