The Act, which came into effect on 1 January 2025, introduces major changes in compliance requirements and links more closely with Broad-Based Black Economic Empowerment (B-BBEE) targets.

Speaking on SAfm, Mandilakhe Gcilitshana, a Development and Employment Equity Specialist at Strata-g Labour Solutions, said the regulations bring clarity and structure, particularly around sector-specific numerical targets. “All employers who have less than 50 employees and previously used to comply because of their turnover… will no longer be required to comply with the provisions affecting designated employers,” said Gcilitshana.

He explained that the new amendments, especially Section 15A, introduce sectoral targets tailored for different industries. Previously, targets were benchmarked against the national Economically Active Population (EAP), but now each sector will have its own set of targets based on the unique workforce dynamics of that industry. “Previously certain industries would complain that they can't achieve their targets because of the challenges they’re facing. The department has now said, let those industries have their own separate benchmarks,” he said.

Another critical change is the activation of Section 53, which requires any business engaging with organs of state to hold a Certificate of Compliance with employment equity requirements. While the certificate previously existed, it was not actively enforced.

On the link between employment equity and B-BBEE, Gcilitshana said companies that fail to meet their equity targets may also miss out on B-BBEE points. “There’s a huge link between employment equity and BEE. If you don’t then achieve your employment equity target, you are more likely not to have then achieved your BEE targets,” he said. This could have implications for businesses seeking contracts with the state or other BEE-conscious companies.

Legal challenges to the Act have already surfaced, with the Democratic Alliance labelling it unconstitutional. However, Gcilitshana says the changes remain aligned with South Africa’s transformation goals. “These changes are still consistent with what the Act seeks to achieve: to ensure that there is no unfair discrimination in companies and that there is equitable representation,” he said.

He added that sector-based targets make compliance more realistic, particularly for industries that are historically male- or female-dominated. “What it has done actually, it has become a lesser burden to employers,” he said, noting that the targets are now more context-specific, which could make gradual compliance more achievable.

--ChannelAfrica--