On 6 April 2023, the President signed into law the Employment Equity Amendment Act 4 of 2022. The effective date is yet to be proclaimed.
Employers need to gear up for the changes which include:
- Compliance certificates: Employers who desire to do business with the state will need EE compliance certificates from the Department of Labour (DOL) and proof of compliance with paying workers above minimum wage rates. This means that enterprises seeking compliance certificates will need ask the DOL to conduct EE compliance inspections based on compliance criteria set by the Minister of Labour.
- Sector targets: Ministerial powers to establish employment-equity targets for economic sectors. The consultation phase to establish these targets are underway in certain industry sectors. There are limited reasons to justify non-compliance with sector targets.
There is relief for employers who employ less than 50 employees, this group will no longer be required to submit annual EE reports, prepare, and implement EE Plans, workplace consultations and to implement of Affirmative action measures.
Compliance requirements for employers employing over 50 employees
Minimum requirements for a compliant EE Plan
For more information contact Michelle Naidoo @ Mooney Ford Attorneys
*Michelle Naidoo is a Partner at Mooney Ford Attorneys specialising in employment and labour law. Michelle provides a full range Employment Equity Compliance services inclusive of Training, Facilitation of EE meetings, drafting records of consultation processes, preparation of Employment Equity Plans, Analysis of workforce policies, procedures and practices, Analysis of degree of under-representation of designated groups and recommendations for numerical goals based on historical Analysis of workforce movements and drafting of Employment Equity Plans based on the outcomes of facilitated consultation meetings.