Companies concerned about complying with the recently promulgated Employment Equity Act can breathe a sigh of relief. Trusted HR services provider CRS Technologies reassures businesses that staying compliant is achievable, even if the new requirements seem challenging at first.
The Employment Equity Amendment Act (EEA) 4 of 2022 came into effect on 1 January 2025 and is all about promoting diversity and equality in the workplace. It introduces some important changes, including a revised definition of the term “designated employer” and sector-specific employment equity (EE) targets set by the Minister of Employment and Labour.
According to Nicol Myburgh, head of HR services at CRS, the implications of these changes depends largely on your company’s size and whether you work with state-owned entities.
“For small businesses with fewer than 50 employees, there’s some good news. They are no longer classified as ‘designated employers’, which means they are exempt from creating EE plans and submitting EE reports to the Department of Employment and Labour,” he explains.
“Those that want to do business with the government will still be able to acquire a certificate of compliance, as long as they adhere to Chapter 2 of the EE Act on the Prohibition of Unfair Discrimination, and the National Minimum Wage Act, 2017.”
For larger companies defined as designated employers, the stakes are a bit higher. “These businesses must meet the sectoral EE targets set by the Minister of Employment and Labour to obtain a compliance certificate,” Myburgh notes. “Companies will not be able to trade with the state without this certificate, which could have a devastating impact on their business operations, especially if the bulk of their revenue comes from state contracts.”
But even if your business struggles to meet the sectoral targets, there are still options.
“This is where an experienced partner like CRS Technologies can make all the difference,” says Myburgh. “We provide tailored advice to help organisations fulfil their obligations legally while safeguarding their business interests.”