KEY HIGHLIGHTS OF THE NEW EMPLOYMENT EQUITY ACT REGULATIONS

The South African labour market is set for a significant transformation with the publication of the new Employment Equity (EE) Regulations. These regulations, published on April 15, aim to promote greater transformation and inclusivity within workplaces across the country. Employment Equity Specialist at Strata-g Transformation Solutions, Mandilakhe Gcilitshana, underscores the significance of these changes in advancing equitable representation across various sectors.
“The introduction of standardised forms such as EEA2 and EEA4, aims to streamline the reporting process for employers. Employers will now have access to templates for EE Analysis (EEA12) and EE Plans (EEA13), facilitating better planning and implementation,” he said.
Gcilitshana added that the new EE regulations are a pivotal step in South Africa’s transformation agenda.
“They aim to ensure equitable access to opportunities for previously disadvantaged groups such as black people, women, and persons with disabilities, fostering a more inclusive economy." The regulations establish five-year sector-specific numerical targets for designated groups across 18 key economic sectors. These targets focus on increasing representation at upper occupational levels, including persons with disabilities. The introduction of mandatory numerical targets under Section 15a (2) of the EE Act compels employers to proactively work towards achieving equitable workforce representation, which is vital for socio-economic development.
Designated employers with 50 or more employees must align their EE plans with these targets to ensure equitable representation. Non-compliance could result in hefty penalties of up to R1.5 million or 2% of annual turnover. It is crucial to note that over 200 employees have already faced Labour Court for prior violations. 
The introduction of mandatory numerical targets under Section 15a (2) of the Employment Equity Act brings tectonic shifts in the labour landscape. It requires employers to take proactive steps towards achieving equitable representation, essential for the country's socio-economic development.
“Enforcing these sector targets will greatly affect designated employers and their capacity to engage in business with the State. Businesses must understand and comply with these regulations to avoid hefty penalties and ensure sustainable growth," Gcilitshana said. .
The new Employment Equity (EE) regulations will significantly impact B-BBEE compliance by redefining "designated employers," requiring sector-specific targets, and introducing an Employer Equity Certificate of Compliance. These changes will necessitate businesses to realign their EE and B-BBEE frameworks to ensure both legal adherence and strategic growth.  Companies wishing to participate in state contracts will be required to provide an Employer Equity Certificate of Compliance.
This certificate demonstrates compliance with the Employment Equity Act and its regulations, including the attainment of sector-specific targets. Companies without this certificate may face exclusion from state tenders and potential penalties for non-compliance.  Gcilitshana emphasizes, “It is important that businesses ensure that their EE strategies are aligned with their B-BBEE objectives to maintain a strong B-BBEE scorecard”
While the new EE regulations present significant challenges, they also offer opportunities for businesses willing to adapt and innovate. Gcilitshana notes that these changes are crucial for fostering a more inclusive and representative workforce in South Africa. “Employers are encouraged to familiarise themselves with the new regulatory framework to ensure compliance and alignment with the employment equity objectives outlined by the Department of Employment and Labour. By doing so, they can contribute to a more equitable and inclusive South African labour market,” concludes Gcilitshana.