Government Gazette 51684 has confirmed that the Employment Equity Amendment Act No. 4 of 2022 will take effect on 1 January 2025. These amendments aim to enhance equitable representation, ease administrative burdens for smaller employers, and streamline the administration of the Act. Below is a detailed overview of the key changes, with references to the amended sections:

Key Amendments

• Redefining Designated Employers (Section 1):
  • From 1 January 2025, employers with fewer than 50 employees, regardless of turnover, will no longer be classified as designated employers and will not need to submit equity reports.
  • Designated employers will include:
    • Employers with 50 or more employees.
    • Municipalities (Chapter 7 of the Constitution).
    • Certain organs of state (Section 239 of the Constitution).
    • Employers bound by collective agreements under section 23 or 31 of the Labour Relations Act which appoints it as a designated employer.
• Removal of Voluntary Compliance (Section 14):
  • Non-designated employers will no longer have the option to voluntarily comply with Chapter III of the Act.
• Sectoral Numerical Targets (Section 15A):
  • Empowers the Minister of Labour to determine numerical targets for equitable representation in various sectors.
  • Establishes consultation requirements to engage relevant stakeholders during the target-setting process.
  • Allows for different targets based on occupational levels, sub-sectors, and regions within a sector.
• Changes to Employment Equity Plans (Section 20):
  • As of the effective date, employers will need to align their equity plans with the sectoral numerical targets determined by the Minister.
  • Employers will no longer set their own numerical targets if sectoral targets apply.
• Revised Reporting Requirements (Section 21):
  • The Minister will prescribe submission deadlines, methods and requirements
  • The fixed October deadline for manual submissions will be removed.
• Expanded Definitions (Section 1):
  • The definition of “people with disabilities” will be updated to align with the UN Convention on the Rights of Persons with Disabilities.
  • New definitions for “sector” and “National Minimum Wage Commission” will be introduced
• Changes to Consultation Processes (Section 16):
  • Revises the requirements for employers to consult with trade unions
• Enforcement and Compliance (Sections 36, 37, and 42):
  • Labour inspectors will have expanded powers to issue compliance orders regarding employment equity plans.
  • Compliance assessment criteria will include adherence to sectoral numerical targets in terms of section 15A
• State Contracts (Section 53):
  • Employers will be required to meet sectoral targets (or provide valid reasons for non-compliance) and submit recent equity reports to qualify for state contracts.
  • Additional compliance criteria will include adherence to the National Minimum Wage Act and no recent findings of unfair discrimination.
• Income Differentials (Section 27):
  • The monitoring of disproportionate income differentials will be transferred to the National Minimum Wage Commission.

Impact on Employers

Starting 1 January 2025:

• Smaller employers (fewer than 50 employees) will no longer be designated employers.
• Designated employers will need to align equity plans with sectoral targets and comply with the revised reporting and compliance requirements.

Please Note: The upcoming implementation date does not impact current Employment Equity Reporting obligations. All employers currently classified as designated must continue submitting their reports in line with the existing requirements until the amendments take effect.

Important Note: The full impact of these amendments on equity plans and employers no longer classified as designated is still unclear. Further clarification will be provided as it becomes available. Stay tuned for updates.