On 12 April 2023, President Cyril Ramaphosa signed the Employment Equity
Amendment Bill of 2020 (“the Bill’) into law, thus amending the Employment Equity
Act No 55 of 1998 (“the EEA”) with new measures to promote diversity and equality
in the workplace
In essence, the Bill seeks to advance transformation of South Africa’s workforce by
setting equity targets for economic sectors and geographical regions, and requiring
entities to develop transformation plans.
The Bill empowers the Minister of Employment and Labour to (1) set employment
equity targets for economic sectors, as well as regions where transformation has
been slow; (2) regulate compliance criteria to issue Compliance Certificates in
accordance with Section 53 of the EEA; and (3) set regional targets given the racial
diversity existing within the 9 provinces of South Africa.
WHAT DOES THIS MEAN FOR EMPLOYERS?
Historically, both (1) employers with more than 50 employees and (2) employers with
less than 50 employees but having an annual turnover in excess of the threshold
amounts set out in Schedule 4 to the EEA, were required to submit their employment
equity plans to the Department of Employment and Labour (“the Department”). The
Bill has done away with the requirement of a turnover threshold and now requires
only employers with more than 50 employees to submit employment equity plans for
their companies to the Department, detailing how they plan to achieve the targets set
out therein. Thereafter, employers will be required to submit annual reports to the
Department setting out their progress in meeting the targets set out in their employment equity plan, which targets may be sector specific if determined by the
Minister of Employment and Labour.
In respect of remuneration, employers will be required adhere to the principle of
“equal pay for equal work.” The Bill further sets out clear definitions of discrimination
as well as the remedies available to employees facing discrimination.
Lastly, entities seeking to conduct business with the State will be required to submit
a Compliance Certificate from the Department confirming that such entity is in
compliance with the EEA and its objectives, and that such entity does not
remunerate its employees below the national minimum wage (R25,42 per hour
effective 1 March 2023).
In an effort to ensure compliance with the EEA, labour inspectors will now be
compelled to inspect workplaces and to issue employers with compliance orders. To
this end, the Department has committed to increase the number of labour inspectors
and health and safety inspectors who will enforce compliance.
