The Employment Equity Act (EEA) is nearing 30 years old. Over that time, it’s been a contentious piece of legislation and one that has undergone considerable change.
More recently, a number of amendments have changed which businesses need to comply and what’s expected of them.
So, where do things stand today? Here’s a practical look at who needs to comply, what they need to do and what could happen if they don’t.
Who needs to comply?
While all employers need to comply with the EEA’s unfair discrimination provisions, larger employers have additional obligations if they are considered “designated employers”.
Historically, there were two ways an organisation could fall into this category: employing 50 or more people, or exceeding certain turnover thresholds within its industry.
The turnover rule created some unusual situations. For example, businesses with high revenues but relatively small teams, such as asset managers, could find themselves classified as designated employers despite having only a handful of employees.
That changed in 2025. The turnover threshold was removed, which means only employers with 50 or more employees are now considered designated employers.
What do designated employers need to do?
In simple terms, designated employers have four key responsibilities:
- Consult with employees to identify and remove barriers, and implement affirmative action measures.
- Prepare and implement an employment equity plan.
- Endeavour to comply with the relevant sector-based employment equity targets.
- Report annually to the Department of Employment & Labour (DOEL).
The introduction of sector targets in 2025 has attracted considerable controversy and judicial challenge. For now, however, designated employers are required to work towards certain gender and race-based targets across the various occupational levels by the end of their employment equity plan.
Another important change relates to the plans themselves.
For most of the EEA’s history, employers had some flexibility around when they implemented their employment equity plans and how long those plans would run.
That changed in 2025. All designated employers are now required to implement a five-year employment equity plan, which should have commenced on 1 September 2025 and will run until 31 August 2030.
When it comes to reporting, the current DOEL reporting window opened on 1 September 2026 and closes on 15 January 2027. Importantly, designated employers need to have an employment equity plan in place before they can report on their progress.
What happens if you don’t comply?
This is where things get a little more serious.
If your organisation has 50 or more employees and did not implement an employment equity plan from 1 September 2025, it is already non-compliant.
Failure to prepare and implement an employment equity plan, or to submit the required reports, can expose an employer to substantial fines imposed by the Labour Court.
For an employer with no previous contraventions, the maximum fine is the greater of R1.5 million or 2% of annual turnover. For repeat offenders, this can rise to the greater of R2.7 million or 10% of annual turnover.
The 2025 amendments also introduced an employment equity certificate of compliance, which has become a requirement for public tenders.
There’s another reason for employers to take compliance seriously. With the removal of the turnover thresholds, there are now fewer designated employers in South Africa – but considerably more inspectors. The DOEL has indicated that the number of inspectors nationally has increased from around 2,000 to 20,000.
Need to get your Employment Equity compliance in order?
If your business needs to comply and you’re not there yet, it’s not too late – but it is worth getting the process moving.
If you need assistance complying with the Employment Equity Act, speak to Paul Cooley from Workplace Strategies for guidance on what your business needs to do and how to get compliant.
