By Lehlohonolo Lehana.
The High Court in Pretoria has dismissed an urgent application by the National Employers’ Association of South Africa (NEASA) and Sakeliga seeking to halt the implementation of the numerical targets set in terms of the Employment Equity Act (EEA).
The application was launched after numerical employment targets for businesses with more than 50 employees in the 18 economic sectors were published in April.
The state argued that these were targets rather than quotas, intended to increase the representation of blacks, women and people with disabilities in the workplace.
The Act has been criticised for seeking to turn businesses into enforcers of arbitrary state policy and for denying business owners agency over their own employment choices.
The court found that the minister had set numerical targets rather than goals, and the application to interdict the implementation of the new employment equity regulations was not a constitutional matter, as was argued by the business groups.
“The application for an interdict or suspension falls to be dismissed, “says the ruling by Judge Graham Moshoana, adding that the court was in no position to examine whether the numerical targets set by the minister were lawful or not. Each party was ordered to pay their own costs.
The Court also dismissed an application by trade union Solidarity to be admitted as an amicus curiae (friend of the court).
Business groups said on Friday they will appeal directly to the Constitutional Court.
The groups argue the targets, due to take effect on September 1, 2025, amount to harmful state interference in the labour market.
Neasa and Sakeliga said the High Court had erred in rejecting their application for an interdict. They will now seek to have the decision overturned in the Constitutional Court, while also filing a parallel appeal to the Supreme Court of Appeal.
Employment and Labour Minister Nomakhosazana Meth welcomed the High Court’s ruling, calling it “a victory for equity, justice, and the rule of law.”
“It affirms that the department has acted within its legal mandate to advance transformation in the workplace. We urge all employers to comply with the Employment Equity Regulations and to prepare for the submission of their 2025 EE reports. The time for meaningful change is now.”
The Congress of South African Trade Unions (COSATU) also welcomed the judgment, describing the legal challenge as misguided.
“We are pleased that their challenge has been dismissed as legal adventurism,” said COSATU Parliamentary Coordinator Matthew Parks.
Employers looking to complete the 2025 EE report online or declare their current status as a non-designated employer must click an activation link sent to all employers via email from 1 September 2025.
Non-designated employers, those that employ fewer than 50 employees, must confirm or update their statuses to get their EE Compliance Certificate.
Employers who previously deregistered their EE account must notify the Director-General of the Department of Employment and Labour to reactivate their EE account. Employers who do not have an EE account must register their profile online and access the EE online portal to request the EE Compliance Certificate.