By Lehlohonolo Lehana.
The Employment Equity (EE) Amendment Act aimed at reducing the regulatory burden for small employers is coming into effect on 1 January 2025.
Minister Nomakhosazana Meth made the announcement earlier in December.
President Cyril Ramaphosa signed last year, the proclamation notice giving effect to the start date of implementation of the Employment Equity (EE) Amendment Act, No. 4 of 2022.
In terms of the notice gazetted on 28 November 2024, small businesses that employ less than 50 employees are no longer bound to comply with Chapter III of the Employment Equity Act, 1998 (EEA) – for example in relation to the submission of their EE reports starting from the 2025 EE Reporting period.
In terms of the 2024 EE report submission, which closes on 15 January 2025, employers must use the current legislation (EEA) to comply with the reporting requirements as per section 21 of the EEA.
Meth said small businesses that employ less than 50 employees are no longer required to comply with Chapter Three of the Act.
“For example, in relation to the submission of their EE reports starting from 2025 EE Reporting period.
“In terms of the 2024 EE report submission, which closes on 15 January 2025, employers must use the current legislation (EEA) to comply with the reporting requirements as per section 21 of the EEA.”
Another change is the introduction of sectoral numerical targets. The Minister is expected to set numerical targets for different sectors to ensure equitable representation of historically disadvantaged groups.
She added that the main objectives of the amendment include “to strengthen compliance, including the issuing of EE compliance certificates”.
“In the next 2025 EE reporting cycle starting on 1 September 2025, employers will have to use the published EE amended legislation to submit their EE reports. We hope that the new amendments to Employment Equity will impact positively on job creation and the unemployment rate,” said Meth.
Employment law experts have labelled the sectoral targets as “the most controversial of all the amendments by far”.
Melissa Cogger, partner at Bowmans law firm said once sectoral targets are published in their final form, designated employers will need to review their employment equity plans to ensure that their numerical targets and goals align with any sectoral targets.
“Once the amendments are effective, the Minister will be empowered to identify sectors by government gazette, consult with the relevant sectors and issue a draft notice for public comment in respect of the identification of sectors and the setting of sectoral targets before publishing a final version.”
Previously, if the business had an annual turnover of a certain amount, they were required to comply with the Act, despite the number of employees they had. This will change, as there will no longer be any consideration given to an employer’s total annual turnover.
The act has also amended the definition of ‘disabilities’. Cogger said the definition will now include people with intellectual or sensory impairments which may substantially limit their entry into or advancement in employment.