The Employment Equity Amendment Act 4 of 2022 was signed into law on 14 April 2023. The amendments to the Employment Equity Act (EEA) aim to promote greater workplace equity and inclusivity in South Africa.
Some of the key changes introduced by the Employment Equity Amendment Act include:
The introduction of sectoral numerical targets. This means that the Minister of Employment and Labour will be able to set numerical targets for designated groups in specific sectors. The aim of this is to ensure that there is equitable representation of designated groups in all sectors of the economy.
The change to the definition of “designated employer”. The definition is amended to excluded employers who employ fewer than 50 employees, irrespective of their annual turnover. As a result of this amendment, smaller employers will not be required to comply with the obligations of a designated employer relating to affirmative action, including the development and implementation of employment equity plans and reporting to and submission of employment equity reports to the Department of Employment and Labour. This will significantly relieve the administration burden on these employers.
The strengthening of the enforcement mechanisms. The enforcement mechanisms under the EEA have been strengthened. This means that employers who fail to comply with the EEA will face stricter penalties.
The introduction of an Employer Equity Certificate of Compliance. Employers who wish to participate in state contracts will now be required to have an Employer Equity Certificate of Compliance. This certificate will demonstrate that the employer is complying with the EEA.
The Employment Equity Amendment Act is a significant piece of legislation that will have a major impact on workplace equity in South Africa. The amendments aim to ensure that all employees are treated fairly and that there is equitable representation of designated groups in the workplace.
Here are some of the key implications of the Employment Equity Amendment Act for employers:
Employers will need to comply with the new sectoral numerical targets. This may require employers to make changes to their recruitment, promotion, and termination practices.
Employers will need to be more transparent about their employment equity practices. This means that employers will need to collect and report more data on their workforce.
Employers who fail to comply with the EEA will face stricter penalties. This means that employers need to take the EEA seriously and ensure that they are complying with the law.
The Employment Equity Amendment Act is a complex piece of legislation, and employers should seek professional advice to ensure that they are complying with the law.
Article by: Tiffany Le Sueur - EE Consultant
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