• The amendments to the Employment Equity Act 55 of 1998 (EEA) took effect from 1 January 2025. The amendments to the EEA introduce a number of key changes, including the introduction of sectoral targets.
• In turning to compliance and enforcement, a designated employer will not face penalties if they can demonstrate reasonable grounds to justify their failure to comply with any sectoral target.
• The 2025 Regulations to the EEA provide a list of justifiable grounds for not complying with sectoral targets, and mergers and acquisitions are listed as one of these grounds.

On 15 April 2025, the Minister of Employment and Labour (Minister) published the final sector numerical targets that reflect the five-year targets for each economic sector. The focus of the sector numerical targets continues to be top and senior management, as well as professionally qualified and skilled levels, and people with disabilities.

Sections 12 to 27 of the EEA only apply to “designated employers” and the amendments to the EEA have changed this definition to exclude employers that employ fewer than 50 employees, irrespective of their annual turnover. However, employers that still fall within the definition of “designated employer” are required to comply with various obligations in terms of the EEA, including the development of employment equity (EE) plans and submission of EE reports to the Department of Employment and Labour (DEL). The EE plan must align with sectoral numerical targets effective 15...

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