New Employment Equity Rules Take Effect: What South African Employers Must Know (Part Two)

As discussed last month, the Department of Employment and Labour has introduced the updated Employment Equity Regulations, which came into effect on 15 April 2025. These new regulations form part of the Government’s stronger push for workplace transformation, bringing stricter compliance rules and tougher enforcement measures for employers. 

It’s vital to note that to qualify for state tenders and contracts, designated employers must hold a valid EE Compliance Certificate (EEA16A), which is issued annually. Certificates can be withdrawn if obtained through misrepresentation or fraud. 

Furthermore, publicly listed companies are required to disclose summaries of their Employment Equity reports in their annual reports. Employment Equity records are classified as public documents and may be accessed upon request (EEA11). 

Employers must develop, submit, and implement an Employment Equity Plan that aligns with compliance standards for the period from 1 September 2025 to 31 August 2030, ensuring adherence to sector-specific numerical targets. As previously stated, companies that fail to meet these requirements may face substantial penalties, including fines of up to R1.5 million or 2% of their annual turnover. 

The 2025 Regulations introduce or revise 19 official forms, including: 

• EEA4: Income differentials 

• EEA15: EE Certificate application 

• EEA16C/D: Certificate withdrawal procedures 

• EEA12–EEA17: Barrier analysis, EE Plans, and sector targets 

To remain compliant, employers should review and revise their existing Employment Equity Plans immediately, align numerical targets with sector-specific benchmarks, train internal HR and compliance teams on the new forms and obligations, and engage with the Department early if difficulties in compliance arise. 

Employers unable to meet numerical targets must demonstrate reasonable justification, such as the absence of suitable recruitment or promotion opportunities, skills shortages among designated groups, organisational restructuring, mergers, or economic downturns, and/or compliance with other statutory obligations (e.g., CCMA awards or Court Orders). 

Ensure your business meets Employment Equity compliance with expert guidance from McCarthy Attorneys Inc. Contact us today to schedule a consultation and alleviate the stress of compliance.