The Employment Equity Act is Being Amended

The Employment Equity (EE) Act of 1998 is being amended and businesses in South Africa are urged to be mindful of the change. The Department of Employment and Labour hopes that the amended act will take effect once the parliamentary processes are finalised by March 2022.

The Amendment of the Employment Equity Act of 1998 is intended to:

  • Reduce the regulatory burden on small business
  • Empower the Employment and Labour Minister to regulate sector specific EE numerical
  • Promulgate section 53 of the EEA for the issuing of the EE Compliance Certificate.

According to a recent media statement issued by the Department of Employment and Labour, “the EE Bill seeks to eliminate all current employment equity plans by September 2022, and to ensure that all new plans align with the new five-year targets set by the Employment and Labour Minister.” 

In the statement, the Director of Employment Equity, Ntsoaki Mamashela, went on to say that all current EE plans will fall away in September 2022 and the new plans will have to be aligned with five-year targets. 

One of the major changes to the Act will be that the Minister of Labour and Employment will have the power to set sector-specific Employment Equity targets. The Minister will also issue Employment Equity Compliance Certificates to companies vying for government tenders.

Employers who fail to comply with the provisions of the Act face being fined. To find out more about the amendments, click here

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