Following a period of close-on 3 years, President Cyril Ramaphosa has finally signed the Employment Equity Bill into law on the 12th of April 2023.
The EE Act requires Employers who employ more than 50 employees, to conduct an Analysis and then develop and implement an Employment Equity Plan to address and rectify any identified barriers and underrepresentation of designated groups and furthermore submit annual reports to the Department of Employment and Labour. Companies seeking to do business with the state will also be required to submit a certificate from the Department confirming that they are in compliance with all aspects of the EE Act and its objectives, which now includes sector specific targets which the Minister may set and which the Department of Employment and Labour will regulate.
Another major change in the amended legislation is the definition of a “Designated Employer”. According to the new definition, only Employers who employ 50 or more Employees are deemed to be designated and as such, Employers who employ fewer than 50 employees and that has an annual turnover that is equal to or above the previous thresholds determined by the EE Act, will now only be required to comply with Chapter 2 of the EE Act.
Contact us, should you as a desiganted employer, require more information or our professional assistance.
