By Lehlohonolo Lehana.
Minister of Employment and Labour, Nomakhosazana Meth welcomed the Constitutional Court judgement on new Employment Equity targets imposed on businesses.
The Apex Court declined Sakeliga and Neasa’s application for leave to appeal in their urgent application for an interdict against the Employment Equity quotas enacted in 2025.
Under the laws, designated employers in South Africa—businesses employing over 50 people—are required to draw up plans to ensure their workforces reflect the country’s demographics at all levels.
To this end, the government is now empowered to set numerical demographic targets for businesses across 18 sectors, pushing for black, Indian/Asian, coloured as well as female and disabled representation.
On top of the targets, designated employers are also now saddled with increased admin and burdensome compliance costs—while facing steep fines and penalties for falling foul of the laws.
Meth said it is important to note that the numerical goals are set by the designated employers, and companies must therefore submit their annual EE reports against their own set annual EE targets in their EE plans.
“In the absence of any court interdict, the department is therefore forging ahead with the implementation of the EE Regulations and the five-year sector numerical EE targets,” Meth said.
The High Court dismissed Part A of the application and held that an interdict was not appropriate where the minister had already exercised statutory powers.
The court declined to suspend what it regarded as a lawful exercise of statutory authority, emphasising the separation of powers. The court further held that the consultation process preceding the publication of the sectoral numerical EE targets was lawful and that employers retain flexibility to justify deviations for non-compliance in terms of the Employment Equity Act.
The applicants then approached the Supreme Court of Appeal, which also turned down leave to appeal. They subsequently approached the Constitutional Court on an urgent basis for leave to appeal, to be followed by a review application.
The minister said her department will also oppose the pending review application.
She explained that the key objectives and implications of the EE Amendment Act include empowering the minister to regulate sector-specific EE numerical targets. This is to ensure the equitable representation of suitably qualified people from the designated groups (Africans, Coloureds, and Indians, women of all race groups, as well as people with disabilities irrespective of their race and gender).