As we prepare for the upcoming Employment Equity (EE) reporting period, it’s essential to understand both the current requirements and the fundamentals of EE legislation. Based on the recent feedback from the Department of Labour Roadshow, here are the key points you need to know about the 2024/2025 EE submissions, along with some relevant background on EE legislation.

Understanding Employment Equity Legislation

Employment Equity (EE) legislation in South Africa is governed by the Employment Equity Act (EEA), which was enacted to promote equal opportunity and fair treatment in the workplace. The Act aims to eliminate unfair discrimination and ensure that all employees, regardless of race, gender, or disability, have equal access to employment opportunities. It also encourages the implementation of affirmative action measures to redress disadvantages in employment experienced by designated groups.

Designated Employers under the EEA are required to:

  • Implement affirmative action measures to ensure equal representation of employees from designated groups in all occupational categories and levels of the workforce.
  • Submit annual EE reports to the Department of Employment and Labour, detailing the progress made towards achieving EE targets and complying with the Act.

  1. Continuation of Previous Requirements

For the 2024/2025 reporting period, submissions will follow the same requirements as last year. This means that all clients who submitted for the 2023/2024 period will need to submit their reports again. Reminder letters will be sent out starting from 01 September 2024 to help you stay on track with your submissions.

  1. Designated Employer Status

The criteria for designated employer status remain unchanged under the old legislation:

  • Employers with 50 or more employees are considered designated.
  • Employers exceeding industry thresholds are also designated, regardless of the number of employees.

As a designated employer, you are obligated to comply with the EE Act, which includes the development and implementation of an Employment Equity Plan and the submission of annual EE reports.

  1. Submission Timeline

The EE submission portal will go live on 01 September 2024 and will close on 15 January 2025. It’s crucial to ensure your submissions are completed within this window to avoid penalties.

  1. Valid Employment Equity Plans

If you have a valid EEA 13 plan that extends through 2025, you may proceed with that plan. However, if your plan is set to expire in August 2025, you can draft a new one-year plan following the old format. This flexibility allows you to continue aligning with current requirements while preparing for potential changes.

  1. Deregistration for Employers Below Thresholds

Employers who fall below the 50-employee threshold and industry limits cannot simply de-register from the Department of Labour’s portal. Deregistration will only be considered for specific reasons, including:

  • Section 197 transfers of business
  • Mergers or acquisitions
  • Labour Court orders
  • Liquidation or judicial winding
  • Insolvency

It’s important to remain active on the Department of Labour system, especially if your employee count is below 50, as new changes or amendments could affect your status.

  1. Proceeding with Deregistration

If you believe that deregistration is appropriate for your company due to no longer needing BEE compliance or for tendering purposes, please communicate with your HR consultant for assistance. We can guide you through the process to ensure it is done correctly and in compliance with current regulations.

  1. Potential Changes to the EE Submission Process

While the above requirements are based on current legislation, it’s important to note that changes could occur at any time. If new amendments are proclaimed and become active, a new EE submission portal will be implemented. We will keep you informed and advise you on any necessary adjustments to your reporting process.

Why Compliance with EE Legislation Matters

Compliance with EE legislation is not only a legal requirement but also a critical step toward promoting diversity and inclusion in the workplace. By meeting your obligations under the EE Act, you contribute to creating a more equitable work environment where all employees have the opportunity to succeed, regardless of their background. Additionally, compliance helps your business avoid legal penalties and maintain a positive reputation in the industry.

Final Thoughts

Staying informed and prepared is key to ensuring compliance with Employment Equity regulations. If you have any questions or are unsure about your status or submission requirements, please don’t hesitate to reach out to your HR consultant. We’re here to help you navigate these requirements and ensure that your company remains compliant.

Chanel Geske