New Employment Equity Legislation: A Step Towards Greater Inclusivity

Employment Equity (EE) legislation is changing, and organizations and companies will soon be required to comply with new requirements. The focus is on meeting self-set annual targets to achieve sector-wide five-year EE goals. The Department of Employment and Labour’s Deputy Director for EE, Masilo Lefika, recently informed stakeholders that employers will be evaluated on their own set annual targets. Companies have the flexibility to set their own benchmarks, and these are not quotas.

Guiding Employers with EAP Data

The economically active population (EAP) data, published by Statistics South Africa, will guide employers in consulting with employees, conducting analyses, and implementing EE plans. Lefika addressed stakeholders at a joint workshop with the Commission for Conciliation, Mediation and Arbitration (CCMA) on the recent amendments to the EE Act and the setting of EE targets.

Sector EE Targets

According to Lefika, sector EE targets serve as a benchmark or milestone characterized by built-in flexibility. “Designated employers still maintain the power to consult employees and self-regulate their annual EE targets toward achieving the five-year sector EE target,” he said. The EE Amendment Act received official approval from President Cyril Ramaphosa in April 2023. The release of draft Employment Equity Regulations by Employment and Labour Minister T.W Nxesi in May 2023 outlined the proposed numerical targets for identified economic sectors.

Main Objectives of the Employment Equity Amendment Legislation

The main objectives of the Employment Equity Amendment legislation include reducing the regulatory burden for small employers, empowering the Minister to regulate sector-specific numerical EE targets, promulgating Section 53, and strengthening compliance, such as issuing EE compliance certificates.

Exemptions for Small Employers

Small employers, those with 1 to 49 employees, are exempt from complying with the provisions of Chapter III of the EE Act. However, Lefika cautioned that these employers must still comply with the provisions of the National Minimum Wage and ensure they do not have CCMA unfair discrimination awards against them in the previous 12 months.

National Workshops

Until the proclamation date is signed into law to effect the amendments, the current status quo concerning the Employment Equity Act will remain in place. The Department and CCMA’s 2023 Employment Equity national workshops are held under the theme: “Real transformation makes business sense.” These workshops aim to create awareness of the recently promulgated EE amendments, sector targets, and regulations.

Target Audience and Schedule

The EE workshops target employers, heads of organizations, academics, assigned senior managers, consultative forum members, human resource practitioners, trade unions, employees, and other interested stakeholders. These national workshops will take place from 10:00 am to 2:00 pm, covering all provinces. Members of the media are invited to attend.

More Information

For more information on EE workshops, visit the Department of Employment and Labour’s social media platforms and its website www.labour.gov.za, where updates on schedules and venues will be available. Overall, this legislation is a step towards greater inclusivity in the workplace and may impact organizations of all sizes.