The long-anticipated amendments to the Employment Equity Act (EEA) will come into effect on 1 January 2025. These changes are designed to streamline compliance for businesses and advance equitable representation across South Africa’s workforce. Here’s an overview of the most significant updates and how they might affect your business:
Key Amendments
- Narrower Application: An employer will be considered a designated employer if it employs 50 or more employees and there will be no consideration to annual turnover. This adjustment aims to reduce the regulatory burden on smaller employers, who will not be required to comply with the obligations of a designated employer relating to affirmative action, including the development and implementation of employment equity plans and reporting to and submission of employment equity reports to the Department of Employment and Labour.
- Sectoral Numerical Targets for Representation: The Minister of Employment and Labour (Minister) is empowered to introduce numerical targets for different sectors to promote the inclusion of historically disadvantaged groups across race, gender, and disability categories. A designated employer will be required to set numerical targets in their employment equity plan in line with the applicable sectoral targets set by the Minister. The sector specific targets have not yet been announced.
- Expanded definition of ‘people with disabilities’: The definition has been extended to include people with intellectual or sensory impairments which may limit their prospects of entry into, or advancement in, employment.
Stay Informed and Ready
Understanding these amendments is critical to ensuring your business remains compliant. For detailed insights, please contact our Head of Employment Law, Melanie Hart at melanie@bv-inc.co.za.