President Ramaphosa signed into law the Employment Equity Amendment Bill of 2020 on the 12th April 2023.
This Bill amends the current Employment Equity Act with new measures to promote diversity and equality in the workplace, and the introduction of sectoral targets for economic sectors and geographical regions.
However, at the latest Department of Labour roadshow, the Department advised that they were still consolidating the Public’s feedback on the sectoral targets they set, and will not be ready for implementation of such targets by 1 September as previously planned.
Employers have been advised to continue to implement the Employment Equity requirements as done in the past, and where their Employment Equity Plans are due to expire in 2023, to continue by preparing new plans as per the format previously followed but focusing on both the draft Sectoral Targets and the EAP as a basis target.
The Amendments are expected to come into full effect for the 2024 reporting period, where the DoE&L confirmed that:
- Justifiable grounds for non-compliance will start being measured from Year 2 after the amendments have been implemented (ie: 2025 reporting period)
- Employers who have become non-designated should still continue to comply with the Act, and should not deregister as Certificates of Compliance will be done through the portal.
- The selected EAP and Sector on the new portal will remain for the 5-year period, and where changes occur within an organisation within the 5 years, they will communicate the process.
- The DoE&L is still in discussion with the Dti on the impact of the B-BBEE Management Control element for an Employer who is non-compliant in terms of CoC’s
As the situation changes or more updates are released, we will keep you informed.