The Employment Equity Amendment Bill delivers a mixed bag, making compliance less onerous for small businesses – but potentially opening the door for more litigation down the line relating to sectoral targets that can be set by the minister of employment and labour.
This is according to employment law expert Asma Cachalia of Cliffe Decker Hofmeyr, commenting on the bill, which was recently passed by the National Council of Provinces. It is awaiting President Cyril Ramaphosa's signature into law.
Once this occurs, it will amend the Employment Equity Act.
This will mean two important changes to the legislation covering employment equity: Firstly, small business employers will not be required to have an employment equity plan, submit reports, and the like.
Secondly, the minister of employment and labour will have the power to determine "sectoral numerical targets". This means the minister, after consulting with the Employment Equity Commission and relevant sectors, can set specific employment equity targets to be achieved in a specific sector – which for the purposes of the bill can mean an industry, service or part of any industry.
Once an economic sector has been...
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