Understanding Compliance with the New Employment Equity Amendments: What Employers Need to Know

The recently gazetted Employment Equity Amendment Act, 2022, introduces critical changes that all employers—both designated and non-designated—need to understand. With enforcement expected to take full effect from 1 September 2025, it is essential that employers familiarise themselves with the revised requirements to remain compliant under the new legislative framework.

Key Compliance Requirements for Employers

1. Sector Targets for Designated Employers

A major shift introduced by the amendments is the implementation of sector-specific numerical targets. These targets aim to fast-track transformation by ensuring the equitable representation of historically disadvantaged groups across all occupational levels.

2. Updated Definition of a Designated Employer

The classification of a "designated employer" has changed as follows:

• An employer is now designated only if they employ 50 or more employees, regardless of annual turnover.
• Employers with fewer than 50 employees are no longer designated, even if their turnover previously aligned with the sectoral threshold.

3. Employment Equity Plan and Reporting Obligations

Designated employers are required to:

• Develop a compliant Employment Equity Plan aligned with the newly introduced sector targets.
• Submit annual EE Reports (EEA2 and EEA4 forms).
• Ensure meaningful consultation with their Employment Equity Committee.

4. Certificate of Compliance

To do business with the state or demonstrate compliance, designated employers must now apply for a Certificate of Compliance from the Department of Employment and Labour (DEL). To qualify, employers must:

• Submit annual EEA2 and EEA4 reports timeously.
• Show measurable progress toward sector-specific EE targets over the 5-year cycle, or provide valid, justifiable reasons for non-achievement.
• Comply with the National Minimum Wage Act over the preceding 12 months.
• Have no CCMA rulings for unfair discrimination in the past 12 months.

New EE Plan Cycle: 1 September 2025 – 31 August 2030

The new Employment Equity reporting period will span five years, starting from 1 September 2025 to 31 August 2030. This introduces a longer-term planning and reporting framework for employers.

• 2025 will serve as a baseline year. Employers will not be assessed for compliance with sector targets in that year but are expected to align their plans accordingly.
• From 2026 onward, annual assessments will be based on the progress made in line with the 5-year EE Plan.
• The EE online portal will remain open throughout the year, allowing employers to access their Certificate of Compliance at any time.

No Need to Deregister – Activation Links Coming in September

In response to the updated designation criteria, some employers have inquired about deregistration. : There is no need for employers to deregister.

The Department of Employment and Labour has confirmed that all employers on the EE database will receive an activation link by September 2025. This will allow each employer to:

• Indicate whether they are a designated or non-designated employer under the new criteria.

This self-declaration will help the DEL update its database and streamline compliance processes.

What Should Employers Do Now?

• Review your current employment equity designation status.
• Await the activation link in September 2025 and declare your status accordingly.
• If designated:
  
  • Familiarise yourself with the sector targets applicable to your industry.
  • Begin aligning your EE Plan with the 5-year requirements.
  • Ensure your workforce profile data is accurate and up to date.
  • Engage your EE Committee to prepare for consultations and reporting.

Final Thoughts

The Employment Equity amendments represent a renewed drive toward real, measurable transformation in the South African workplace. By understanding the new framework and proactively preparing for implementation, employers can ensure compliance, avoid penalties, and contribute meaningfully to a more inclusive and equitable economy.

If you need more guidance, please make contact with us at info@elevateadvisory.co.za