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Employment Equity Amendment Act 4 of 2022 and Proclamation 231 of 2024

By sylviahammond, 28 November, 2024

Report edited on 2nd December 2024.

The purposes of the amendments to the EEA Act 55 of 1998 are explained as: 

  • changes to provide for the Minister of Employment and Labour to set numerical targets by sector “to ensure the equitable representation of suitably qualified people from designated groups”; 
  • to provide for the DEL Minister to issue certificates; 
  • some related matters; and 
  • some changes to definitions.

The commencement date was for future determination. The following sections have now been proclaimed as 1 January, 2025: 1, 8, 14, 15A, 16, 20, 21, 27, 36, 37, 42, 53, 64A, and Section 4 of the amendment act.

The PDF lists the various previous amendments to the original act. 

The following briefly lists key highlights:

Section 1 – makes changes to definitions: clarifying that the National Minimum Wage Commission (NMWC) replaces the Employment Conditions Commission; defining “people with disabilities”; and defining “sector”.

Section 15A provides for the Ministerial process of determining numerical targets per economic sector. After consultation with the relevant sectors, numerical targets may be set for occupational levels, sub-sector, or regions, or other relevant factors, and then gazetted for comment for at least 30 days.

Section removes the consultation employer consultation requirement with employees and nominated employee representations – it only retains the requirement to consult with a “representative trade union representing members at the workplace”.   

 Section 20 requires that the numerical goals set by employers comply with the section 15A targets.

Section 21 provides for new submission forms and dates to be set, and

Section 27 states that the reporting (as in section 21) will be to the NMWC, which will be required to take account of collective bargaining, sectoral determinations, skills development legislation, and to conduct research on payment differentials. Notably, the NMWC may not disclose individual employer or employee information.

Sections 36, 37, 42, 53 relate to labour inspectors, the issuing of compliance orders, whether an employer has a reasonable justification for non-compliance, and whether the employer has had adverse findings against them at the Commission for Conciliation Mediation and Arbitration (CCMA).

Sections 14, 64A, and Schedule 4 of the EEA are repealed.

Notes: 

1.The definition of "designated employer" under section 1 is amended by the removal of paragraph (b), which dealt with employers with less than 50 employees. They were referred to Schedule 4 for a listing of annual turnover. Employers with less than 50 employees, but who fell over the annual turnover listing, were included as designated employers. The definition is amended and the listing is now removed. Therefore, those employers with less than 50 employees are no longer defined as "designated employers". 

2. Although those employers are no longer required to comply with the designated employer reporting requirements, the rest of the Employment Act still applies to them.

3. Section e) of the definition of designated employer has not been removed, and therefore employers should ensure that they are not bound by a collective agreement that may have defined them as a designated employer.

4. Employers who have less than 50 employees and do business with the State, should not apply to be removed. In May 2023, the DEL distributed correspondence that pointed out such non-designated employers would still be required to access the online system to obtain their certificates of compliance. The correspondence is attached.  Employers doing State business are advised to verify with the DEL that they should remain on the system.     

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