President Cyril Ramaphosa signed the Employment Equity Amendment Act 4 of 2022. The act amends the Employment Equity Act of 1998 with new measures to promote diversity and equality in the workplace.
The new laws give the employment and labour minister the authority to specific numerical goals for the racial and gender diversity of designated businesses. These targets will apply to businesses with more than 50 employees.
The purpose of the numerical targets is to ensure equitable representation of suitably qualified people from historically disadvantaged groups based on race, gender, and disability at all occupational levels in the workplace.
South Africa’s opposition party, the Democratic Alliance labelled the legislation as incoherent and described it as racial engineering. Groups argued that setting specific targets for specific provinces for jobs in different sectors shifts the focus of the debate to race instead of what the bill seeks to promote, which is transformation in the workplace.
Equity Works Director Marleen Potgieter does not believe the focus placed on race profiling is appropriate. This as race profiling has been included since the act was first introduced.
They explain that language and the use of words like “must’ indicate that employees have no choice but to comply with the statute.
It does seem like the Department of Labour is ever tightening its screws from the golden targets perspective to make them more fixed.
Employers and other stakeholders have until 12 June 2023 to make submissions to the minister regarding the act. Potgieter says the more industries consolidate themselves and put together consolidated comments on the act, the more the minister is likely to take notice.
Cliffe Dekker Hofmeyr Law Firm released a document highlighting the key amendments to the employment act made by the president.
The firm says that sectoral numerical targets will be determined by the Minister in consultation with the Employment Equity Commission.
They explain that all employers who employ fewer than 50 employees, irrespective of their annual turnover, are excluded from the act. This is because the definition of “designated employer” was changed.
These smaller employers will no longer be required to comply with the obligations of designated employers related to affirmative action and the development and implementation of employment equity plans and submitting employment equity plans to the DEL.
It's important to note that smaller employers will still be entitled to obtain a certificate of compliance under section 53 of the EEA.
