Article
Are You Ready for South Africa’s New Sectoral Employment Equity Regime?
Published: 14/05/2025
As of April 2025, designated employers who employ fifty or more employees must navigate an expanded Employment Equity (EE) landscape under the amended Employment Equity Act and its regulations. The hallmark of this regime is the introduction of ministerial sectoral targets, which mandate that each industry align its workforce composition with targets by the Minister of Employment and Labour by 2030. For agriculture, the Department of Employment and Labour requires 34.0% black representation in top management, increasing to 93.8% at entry levels or rather skilled employees?. Failure to demonstrate progress, or to provide a justifiable reason for non-achievement of the targets jeopardises an employer’s EE compliance certificate which is essential for bidding on government contracts.
Background
As of April 2025,
designated employers who employ fifty or more employees must navigate an
expanded Employment Equity (EE) landscape under the amended Employment Equity
Act and its regulations. The hallmark of this regime is the introduction of
ministerial sectoral targets, which mandate that each industry align its
workforce composition with targets by the Minister of Employment and Labour by
2030. For agriculture, the Department of Employment and Labour requires 34.0%
black representation in top management, increasing to 93.8% at entry levels or
rather skilled employees?. Failure to demonstrate progress, or to provide a
justifiable reason for non-achievement of the targets jeopardises an employer’s EE compliance certificate
which is essential for bidding on government contracts.
Steps towards compliance
At the April Agbiz
Council meeting, Thembi Chagonda from Global Business Solutions shared some
advice with members on steps that need to be taken towards compliance with the
regulations.
In order to comply,
companies must begin with a gap analysis. Using the new EEA12 form, they will
need to map their current demographic profile across all occupational levels
and compare it against their sector’s end-state targets. This analysis, provides
the factual basis for crafting a five-year EE play. This plan must translate
numerical shortfalls into concrete strategies such as targeted recruitment,
mentorship programmes, or graduate schemes and establish clear timelines and
accountability structures ?.
Governance lies at the
heart of any effective EE initiative. Companies are advised to refresh or
establish an EE committee comprising senior management, HR professionals, and
legal advisors. A strong governance framework not only ensures data integrity but
also fosters trust among employees, encouraging honest participation in
disability disclosures and equitable selection processes.
Equally important is
embedding EE metrics into an organisation’s operational strategy. Rather than
scrambling to meet the January reporting deadline, forward-thinking employers
should integrate EE data collection into their human-resources information systems.
Real-time dashboards can track hiring, promotions, and retention rates among
designated groups, enabling quarterly reviews and timely course corrections.
When the submission window opens on 1 September, the annual report and template
forms will reflect well-managed progress rather than last-minute firefighting.
Companies must also
prepare for the possibility of having to raise “justifiable reasons” should
certain targets remain out of reach. The regulations allow employers to explain
shortfalls due to factors beyond their control such as limited recruitment pools
or economic disruptions without losing
their compliance certificate. Meticulous documentation of these reasons,
supported by evidence from labour-market analyses or operational constraints,
will safeguard an organisation’s eligibility to participate in government
procurement.
Way forward
Beyond mere compliance, a
robust EE plan offers strategic advantages. Organisations that prioritise
diversity and build leadership pipelines for historically disadvantaged groups
benefit from enhanced innovation, employee engagement, and corporate reputation.
In a marketplace where public- and private-sector partnerships increasingly
reward demonstrable transformation, companies that treat EE as a strategic
imperative rather than a regulatory burden will stand out as employers and as
bidders for government work.
Agbiz intends hosting a
workshop on employment equity in the near future to assist and empower members
to better understand the EE regulations and targets. This will likely be part of a broader
initiative to establish a platform to facilitate peer-learning, discussion and
collaboration on topics related to inclusion, equity, diversity and belonging
in the workplace.
by Annelize Crosby and Thapelo Machaba