South Africa | Reminder: Employment Equity Amendments Effective 1 January 2025
The amendments to the Employment Equity Act (EEA) will take effect from 1 January 2025. Employers are reminded to take the following actions to ensure compliance with the key amendments:
- Review Employee Disability Status for EE Purposes
Update your records to ensure employees who qualify as disabled under the updated definition are correctly flagged for Employment Equity reporting. The revised definition now includes individuals with long-term or recurring intellectual or sensory impairments that substantially limit their prospects of employment or advancement, in interaction with various barriers.
- Determine Designated Employer Status
From 2025, only employers with 50 or more employees will be considered "designated employers." Businesses below this threshold will no longer need to comply with Chapter 3 of the EEA (affirmative action provisions).
- If you are no longer a designated employer, contact the Department of Employment and Labour (DoEL) to determine if, how, and when to deregister. Currently, there is no formal clarity on this process.
- Prepare for Sector-Specific Numerical Targets
Designated employers must ensure their Employment Equity plans align with the forthcoming sector-specific numerical targets to be set by the Minister of Employment and Labour. While draft regulations have been published, final targets are yet to be confirmed.
Importantly, we are still awaiting clarity from the DoEL regarding how employers should transition from their existing Employment Equity targets to the newly published targets once these are finalised. Employers are advised to stay informed of updates on this process to ensure a smooth transition.Additionally, employers seeking government contracts must obtain a Certificate of Compliance, which will only be issued if they meet the sectoral targets (or provide reasonable grounds for non-compliance) and comply with reporting and minimum wage requirements.Please Note: These new amendments do not impact current Employment Equity Reporting obligations. All employers previously classified as designated must continue submitting their reports in line with the previous requirements before the submission deadline of 15 January 2025.