Is there a difference between EE and BBBEE?

By sylviahammond, 23 August, 2023

This FAQ was inspired by media reports that confuse EE and BBBEE.

Employment Equity (EE) and Broad-based Black Economic Empowerment (B-BBEE) are two entirely different concepts, based on two different statutes, and with different intentions. 

The Employment Equity Act (55 of 1998) has the overall objective of removing discrimination in the workplace. In addition, the act promotes the development to senior and executive positions of people who were previously excluded under the apartheid legislation. 

The statistics show that the majority of senior positions in organisations are not held by previously disadvantaged people - or in most cases, by women.

Employers who are "designated" are required to submit an annual report on progress towards the goal of transforming all levels within the workplace to be representative of the Economically Active (working age) population. 

The Broad-based Black Economic Empowerment Act (46 of 2013) is also concerned with transformation and the inclusion into the economy of people who were disadvantaged under apartheid legislation. The Regulations set out a general Code of Good Practice for implementation, but in addition, sectors of the economy have a sector-specific codes, such as the Finance sector, or Construction. 

Whereas designated employers under EE must report annually, compliance with B-BBEE is particularly relevant to companies and organisations that want to do business with the State. The codes provide for scoring and measurement, which relate to levels representing the inclusion of previously disadvantaged people in senior executive and management, ownership, and skills development.

See separate FAQ on the similarities and overlap between EE and B-BBEE.




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