Employment Equity (EE)

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Employment Equity Sector Target Planning and Monitoring

The Employment Equity (EE) Regulations have officially been promulgated, bringing the EE Amendment Act 4 of 2022 into force. Designated Employers must now ensure full compliance with the new requirements, including Sector-Specific Numerical Targets and revised reporting obligations.

Does EE apply to you?

If you are a Designated Employer, you are required by law to comply with the Employment Equity Act and the newly promulgated regulations.

How do I know if I'm a Designated Employer?

Under the amended definition now in effect, a Designated Employer is any organisation employing 50 or more employees, regardless of turnover.

Employers with fewer than 50 employees are considered non-designated and are not required to report annually to the Department of Employment and Labour.

However, it's important to note that small businesses (1–49 employees) that wish to do business with the State are still required to obtain an EE Certificate of Compliance. For that reason, they should not deregister their EE profiles.

What must Designated Employers do now?

All Designated Employers are required to:

  • Develop a five-year Employment Equity Plan aligned with the Sector-Specific Numerical Targets applicable to their industry.
  • Align their EE goals with the Economic Active Population (EAP) and national transformation priorities.
  • Ensure ongoing consultation and engagement with employees through a properly constituted EE Committee.

The Sector Targets apply primarily to the top four occupational levels, and compliance with these targets will be assessed as part of EE certificate evaluations.

Feeling overwhelmed and not sure where to start?

We're here to help. Affinity People Development partners with organisations to ensure practical, compliant, and sustainable EE implementation.

Our support includes:

  • Running EE awareness workshops to build understanding and buy-in across all levels.
  • Assisting in appointing an EE Committee and assigning a responsible manager.
  • Training the EE Committee on their roles and obligations.
  • Advising on employee consultation and ongoing engagement.
  • Analysing your current workforce profile against the Sector EE Numerical Targets and the Economic Active Population (EAP) (EEA12).
  • Collaboratively developing your five-year EEA13 Employment Equity Plan.
  • Compiling and submitting your annual EEA2 and EEA4 reports.
  • Reviewing your HR policies and procedures against the EE Code of Good Practice.
  • Attending EE Committee meetings and providing progress reports on workforce movement and annual targets.
  • Supporting your succession planning and Management Control elements of the B-BBEE scorecard.
Penalties for Non-Compliance

The Department of Employment and Labour is actively auditing employers for compliance.

Non-compliant companies may face penalties ranging from R1.5 million or 2% of their annual turnover whichever is the greatest. Repeat offenders are fined 10% of their annual turnover.

Key Deadlines

Five-Year EE Plan ending 31 August 2030.

All designated employers must ensure that their new five-year EE Plans are developed and implemented in line with the promulgated Regulations and sector targets.

Annual Reporting Deadlines:

  • Manual submissions: Due 1 October each year.
  • Online submissions: Due 15 January each year.