SA's new Employment Equity regulations: A compliance challenge for businesses by 2030

SOUTH African businesses now face a crucial compliance challenge after the Department of Employment and Labour on Tuesday gazetted two sets of Employment Equity (EE) Regulations effective January 1, 2025.

- PHILIPPA LARKIN

The Department of Employment and Labour said in a statement, "The publication of these EE Regulations represents a pivotal step toward advancing transformation and inclusivity in the South African labour market.

Employers are encouraged to familiarise themselves with the new regulatory framework to ensure compliance and alignment with employment equity objectives."

The regulations mandate designated employers to meet sector-specific equity targets by 2030, with hefty fines for non-compliance. Non-compliance carries penalties of up to R1.5 million or 2% of annual turnover. Over 200 employers have already faced Labour Court for prior violations.

The published regulations include:

1. General Administrative Regulations: These regulations provide standardised reporting forms (EEA2 and EEA4 forms); templates for EE Analysis (EEA12) and EE Plans (EEA13); enforcement tools; and templates for the EE Certificate of Compliance, including the intention to withdraw the EE Certificate of Compliance.These regulations offer implementation guidelines to assist employers and employees in interpreting and applying the provisions of the EE Amendment Act, of 2022, including streamlining compliance processes for designated and non-designated employers.