The landscape of Employment Equity (EE) in South Africa has fundamentally changed.

With the Employment Equity Amendment Act of 2022 and the subsequent 2025 Regulations now in effect, all designated employers must pivot their strategy from compliance to active, targeted transformation.

Based on the latest from the Department of Employment and Labour, here are the critical updates and compliance shifts for the upcoming reporting period, along with an overview of the amended EE legislation.

As your trusted partner, WHM HR Support is here to ensure you navigate these complex changes seamlessly. Based on the latest from the Department of Employment and Labour, here are the critical updates and compliance shifts for the upcoming reporting period.

UNDERSTANDING THE NEW EE LEGISLATION

The core of the Employment Equity Act (EEA) remains a commitment to eliminating unfair discrimination and achieving equitable representation in the workplace. However, the amendments introduce an unprecedented focus on quantifiable, measurable targets.

KEY LEGISLATIVE SHIFTS AS OF 2025:

· Sectoral Numerical Targets: The Minister of Employment and Labour is now empowered to set five-year numerical targets for specific national economic sectors. These targets are mandatory minimums for the equitable representation of designated groups (Black People, Women, and People with Disabilities) across all occupational levels.

· Revised Definition of Designated Employer: The criteria for being a ‘designated employer’ have been simplified and strengthened.

· Compliance Certificate: A new EE Compliance Certificate is now a mandatory requirement for doing business with any organ of state (government contracts).

1. CRITICAL CHANGES TO DESIGNATED EMPLOYER STATUS

The previous criteria involving industry thresholds have been removed. The focus is now solely on workforce size:

2. YOUR NEW MANDATORY EE PLAN & SECTORAL TARGETS

This is the most significant change. You can no longer set your own targets without reference to the sector-specific mandates.

· New Plan Deadline: Designated employers must have a revised, five-year Employment Equity Plan in place by 31 August 2025. This new plan must align with the Minister’s newly published sectoral numerical targets for your industry.

· Plan Implementation: The new 5-year EE Plans are to be implemented from 1 September 2025.

· Disability Target Increase: Note that the national target for suitably qualified People with Disabilities has been increased to 3% across all sectors.

3. SUBMISSION TIMELINE FOR THE 2025 REPORTING PERIOD

The annual reporting process serves as the mechanism to track your progress against the new sectoral targets.

· Reporting Period: The 2025 reporting period relates to data from the pre-amendment period (previous year).

· Portal Live: 01 September 2025

· Submission Deadline: 15 January 2026

Note: This is the deadline for online submissions (EEA2 & EEA4).

4. THE NEW COMPLIANCE CERTIFICATE (SECTION 53)

If you intend to do business with the State, the new EE Compliance Certificate is non-negotiable.

· Requirement: To be awarded a state contract, you must possess a valid Compliance Certificate.

· Criteria for Issuance: The certificate confirms that your organisation:

o Has an approved, implemented EE Plan that aligns with the new Sectoral Targets.

o Has submitted its most recent EE report.

o Has not been found non-compliant with the EEA over the preceding 12 months.

5. DEREGISTRATION UNDER THE NEW ACT

For employers who now fall below the new 50-employee threshold, the process for changing your designated status is simplified but must be formally managed.

· Action Required: If your employee count is now consistently below 50, you can initiate a deregistration process via the Department of Labour’s portal. This removes your obligation for an EE Plan and annual reporting.

· Caution: Even if you de-register, you must always comply with the prohibition on unfair discrimination.

COMPLIANCE IS STRATEGIC

Compliance is no longer a tick-box exercise; it is a strategic business imperative. Failure to comply with the new mandated targets, without reasonable grounds (e.g., lack of suitably qualified candidates, financial impact, etc.), can result in significant financial penalties (up to the greater of R2.7 million or 10% of your annual turnover for repeat offenders).

Staying informed and acting decisively is critical. If you are a designated employer, your immediate priority is to conduct a thorough workforce analysis and draft your new five-year EE Plan, aligning your strategy with the new Sectoral Targets before the August 31, 2025 deadline, please do not hesitate to reach out to your HR consultant at WHM HR Support.

-C.Geske