On Thursday, 28 November 2024, the Government Gazette published a proclamation by the President of the Republic of South Africa confirming the commencement of the Employment Equity Amendment Act 4 of 2022. The amendments will come into force on 1 January 2025.
Key amendments include:
- The definition of “designated employer” no longer includes an employer who employs fewer than 50 employees, but which has a total annual turnover that is equal to or above the applicable annual turnover of a small business in terms of the Schedule 4. Schedule 4 has also been deleted. This means that employers who employ fewer than 50 employees (irrespective of turnover) are not required to comply with the obligations of a designated employer relating to affirmative action.
- The definition of “people with disabilities” has been amended to include intellectual and sensory impairments.
- There is no longer a requirement for the Health Professionals Council of South Africa (“HPCSA“) to certify psychological testing and similar assessments used to assess employees.
- Section 15A is an entirely new section that introduces the concept of sectoral numerical targets. It provides the Minister of Employment and Labour with the authority to set numerical equity targets for specific sectors. This allows for tailored transformation goals in industries such as education, finance, and agriculture.
- A designated employer is required to set numerical targets in line with the applicable sectoral targets set by the Minister. The proclamation is silent on the Draft Regulations on Proposed Sectoral Numerical Targets and final regulations will likely be issued in due course.
- There is no longer a specific date for annual submissions of employment equity reports. The amendment empowers the Minister to make regulations setting the requirements for employers submitting their employment equity reports and the timing of the submission.
- Section 53, which deals with state contracts, has been amended to provide that the Minister may only issue a compliance certificate if the employer has complied with the sectoral numerical targets set by the Minister for the relevant sector, or has demonstrated a reasonable ground for non-compliance. A certificate issued in terms of section 53 is valid for 12 months from the date of issue or until the next date on which the employer is obliged to submit a report, whichever period is longer.
Suemeya Hanif
Kerry-Anne do Couto
