We wish to bring to your attention that the Department of Employment and Labour has officially confirmed the implementation date for key sections of the Employment Equity Amendment Act 04 of 2022. These amendments will take full effect on 1 January 2025.
IMPORTANT NOTE
This implementation date does not affect current Employment Equity reporting obligations. All designated employers must continue to comply with the existing provisions of the Employment Equity Act and submit their Employment Equity Reports for the 2024 reporting period as required.
Key Amendments Taking Effect on 1 January 2025
- Changes to Definitions (Section 1)
- Removal of paragraph (b) from the definition of “designated employer.”
- Addition of a definition for the “National Minimum Wage Commission.”
- Updated definition of “people with disabilities.”
- Introduction of the term “sector.”
- Amendments to Employment Conditions Commission (Section 8)
- Powers transferred to the National Minimum Wage Commission.
- Repeal of Voluntary Compliance (Section 14)
- Voluntary compliance provisions removed.
- Introduction of Sectoral Targets (Section 15A)
- Empowers the Minister to set sector-specific numerical targets.
- Establishes consultation processes for target-setting.
- Allows different targets for various occupational levels.
- Consultation Process Updates (Section 16)
- Adjusted requirements for consultation with trade unions and other stakeholders
- Alignment of Employment Equity Plans with Sectoral Targets (Section 20)
- Plans must align with sectoral targets set by the Minister.
- Changes to Annual Reporting Requirements (Section 21)
- Updates to reporting format and notification procedures for deadlines.
- Income Differentials (Section 27)
- Functions transferred to the National Minimum Wage Commission.
- Revised measures for addressing disproportionate income differentials.
- Expansion of Labour Inspector Powers (Sections 36 & 37)
- Broadened scope of compliance orders and updated service requirements
- Sectoral Target Compliance for Assessments (Section 42)
- Adds compliance with sectoral targets as an assessment criterion
- Changes to State Contract Eligibility (Section 53)
- Adds compliance with sectoral targets as an assessment criterion.
- Technical Revisions
- Repeal of Section 64A and Schedule 4.
- Removal of certain footnotes for clarity.
Next Steps for Employers
We recommend reviewing your current Employment Equity plans to ensure alignment with the forthcoming amendments. Employers in designated sectors should particularly prepare for the introduction of sector-specific numerical targets and other compliance requirements.
For further guidance or assistance in preparing for these changes, please do not hesitate to contact us. We are here to provide expert advice and support.
Regards
To book a virtual consultation please use the following link:
https://outlook.office.com/bookwithme/user/231643c208a54411a76ae3c2ca014504@chagroup.co.za?anonymous
