Employment Equity

Important Update

The 2025 Employment Equity reporting cycle is now officially underway, and the Department of Employment and Labour (DEL) has issued key information on activation links, the definition of designated employers, applicable form submissions, and the conditions for getting an EE Compliance Certificate.

Mandatory: Legally Enforceable Targets

• Effective 1 September 2025: Designated employers must align their employment equity strategies with sectoral targets. Defiance may jeopardise their ability to obtain compliance certificates under Section 53 of the EEA.
• Compliance Certificates: Employers will require a compliance certificate valid for 12 months when doing business with any organ of the state.
• Implementation is Law: If your business has more than 50 employees, the new Employment Equity sectoral targets are not optional.
• PWD Inclusion: Increased disability inclusion targets to 3% across all industries.
• Numerical Targets by Sector: For example; By 2030, top management in hotels and food services must be made up of 56.7% from designated groups, with 38.1% being women.

Purpose

The aim of the Employment Equity Act is to achieve equity in the workplace by promoting equal opportunity and fair treatment in the workplace through the elimination of unfair discrimination. The Employment Equity Act states unequivocally that “suitably qualified” candidates must be appointed. As a result, it is critical that designated employers align their skill development goals with their employment equity targets so that, if a specific qualification or skill is required for a specific occupational level, there is proper alignment.

What is the employer’s obligation under the Employment Equity Act?

All employers are required to follow the Employment Equity Act and ensure that their employees receive equal pay for equal work. Only designated employers are required to conduct a workplace analysis and submit annual reports to the Department of Labour.

What is a designated employer?

A designated employer is one who employs more than 50 employees or has a total annual turnover as reflected in Schedule 4 of the Employment Equity Amendment Act No. 47 of 2013. , as well as municipalities and state organs. Employers can volunteer to become designated employers in terms of Section 14 of the EE Act.

Turnover Threshold Schedule 4

A designated employer must fulfil the following responsibilities:

A designated employer must implement affirmative action measures for designated groups to achieve employment equity. In order to implement affirmative action measures, a designated employer must:

• develop EE committee;
• promote a culture of learning;
• conduct an analysis;
• prepare an employment equity plan; and
• report to the Director-General

What are the designated groups?

A designated group means Black people, women, or people with disabilities.

Why should businesses be concerned about employment equity?

Companies are increasingly being audited and fined a minimum of R2.7 million, or 10% of the employer’s annual turnover (whichever is the greatest), or face 10 years imprisonment for non-compliance with employment equity reporting requirements. This is a hard pill to swallow for a process that is simple to implement with the right assistance. Skills Junction offers expertise and assistance with everything from skills development to the submission of reports and plans. With the EE Report submission deadline approaching (15 January 2026), now is an excellent time to assess your company’s Employment Equity Plan and Employment Equity Reporting in light of the requirements. Contact us today for all of your Employment Equity training and submission needs.

Quick Fact!

Skills Junction is a QCTO & SETA-accredited training provider and a Level 1 EME with 100% B-BBEE compliance and 135% procurement recognition.

“Your Development is our Driving Force”

Official Source: Employment Equity Bill