South Africa has a well-known history of excluding people based on race, which has had negative consequences. The Employment Equity Act (EEA) aims to promote equality, ensuring that all employees have equal opportunities and fair treatment. The EEA focuses on implementing employment equity and affirmative action to address historical discrimination.
The EEA applies to all employees and employers in South Africa, except certain entities like the National Defence Force and Intelligence Agencies. Sections 12 to 27 of the EEA specifically apply to designated employers. The recent Amendment Act changes the definition of "designated employer" to reduce the scope, easing the administrative burden on smaller employers.
The EEA prohibits discrimination in employment policies based on various grounds, including race, gender, pregnancy, and disability. The amendment benefits smaller employers by excluding those with fewer than 50 employees from the designated employer category, relieving them from certain obligations.
Smaller employers, though exempt from some reporting requirements, can still obtain a compliance certificate. To do so, they must show no recent findings of discrimination or failure to pay the minimum wage by the Commission for Conciliation, Mediation, and Arbitration (CCMA) or a court.
The definition of "people with disabilities" aligns with international standards, recognizing long-term impairments that limit employment prospects. The Amendment removes the Health Professionals Council of South Africa (HPCSA) certification requirement for psychological testing.
A new section, 15A, introduces sectoral numerical targets to ensure equitable representation in the workforce. The Minister of Employment and Labour sets targets for different economic sectors based on race and gender. Employers must align their employment equity plans with these targets.
The amendments link sectoral numerical targets to compliance assessments under section 42. Employers must comply with their plans annually to achieve five-year sectoral targets. The Minister issues compliance certificates based on adherence to sectoral targets and other requirements.
For state contracts, section 53 states that the Minister can issue a compliance certificate only if the employer meets sectoral targets, submits required reports, and has no recent findings of discrimination or minimum wage violations. Certificates are valid for 12 months or until the next reporting deadline.
Employers seeking assistance with Employment Equity Compliance can use the provided form.
