The Employment Equity Amendment Act, which is aimed at reducing the regulatory burden for small employers to allow them to focus on job creation, will come into effect today, 1 January 2025.
President Cyril Ramaphosa signed last year, the proclamation notice giving effect to the start date of implementation of the Employment Equity (EE) Amendment Act, No. 4 of 2022.
In terms of the notice gazetted on 28 November 2024, small businesses that employ less than 50 employees are no longer bound to comply with Chapter III of the Employment Equity Act, 1998 (EEA) - for example in relation to the submission of their EE reports starting from the 2025 EE Reporting period.
In terms of the 2024 EE report submission, which closes on 15 January 2025, employers must use the current legislation (EEA) to comply with the reporting requirements as per section 21 of the EEA.
Employment and Labour Minister Nomakhosazana Meth said she was positive the regulatory flexibility will enable small businesses to now focus on growing their businesses and create jobs.
“In the next 2025 EE reporting cycle starting on 1 September 2025, employers will have to use the published EE amended legislation to submit their EE reports. We are excited by the latest developments that small businesses will no longer have to go around spending their money on consultancy fees to source legal assistance to develop EE plans and submission of EE Reports.
“We hope that the new amendments to employment equity, will impact positively on job creation and the unemployment rate,” the Minister said.
The latest EE amendments originated in 2019 when the Department and Commission for Employment Equity (CEE) initiated sector engagements with the intention of the setting of sector EE targets to give workplace transformation impetus.
The main objectives of the Employment Equity Amendment legislation include:
• reducing the regulatory burden for small employers - employers employing between 1 to 49 employees – will be excluded from complying with the provisions of Chapter III of the EE Act;
• empowering the Minister to regulate the sector specific numerical EE targets;
• promulgating Section 53; and
• strengthening compliance, including the issuing of EE compliance certificates.
The EE Amendment Bill was assented into law on 6 April 2023 by President Ramaphosa.
The new legislation will allow employers to comply with their own set annual EE targets towards the achievement of the five-year sector EE targets. – SAnews.gov.za
