Employment Equity sparks DA-ANC legal battle

Concern that 'one-size-fits-all approach' will be detrimental to businesses

- THAMI MAGUBANE and SIPHESIHLE BUTHELEZI

THE Employment Equity Amendment Act (EEAA) is the latest contentious issue that has divided the two major parties in the Government of National Unity (GNU).

The DA is taking legal action over a section of the amended Employment Equity Act, claiming it creates race-based employment quotas that will exclude and harm certain segments of the population.

On April 15, the Department of Employment and Labour published two sets of Employment Equity (EE) Regulations following the commencement of the EEAA on January 1, 2025. These regulations include:

1. General administrative regulations: These provide standardised forms and templates for equity analysis and planning, enforcement tools, and processes for obtaining or withdrawing an EE Certificate of Compliance.

2. Regulations on sector numerical EE targets: These introduce five-year numerical targets for designated groups across 18 economic sectors and four upper occupational levels, including top and senior management, as well as persons with disabilities.

The department described these regulations as a pivotal step toward advancing transformation and inclusivity in the South African labour market. Employers with 50 or more employees are required to align their Employment Equity Plans with the sector targets. Smaller employers are exempt from the reporting requirements but may still request compliance certification.

The DA's court action has further strained relations between the DA and the ANC, which has accused the DA of being anti-transformation. The DA has countered these claims, stating that it supports redress in the economy.