On 15 April 2025, the Department of Employment and Labour published two (2) Regulations under the Employment Equity Act 55 of 1998 as amended ('the Act'). These are the Employment Equity Regulations, 2025 issued under section 55(1) of the Act, and the Determination of Sectoral Numerical Targets, issued under section 15A(1) and (2) of the Act. Together, these Regulations aim to enhance the implementation of the Act and give effect to its objective of achieving equality in the workplace.
These Regulations apply to designated employers, being employers who employ more than 50 employees, a municipality, an organ of the state, and an employer who is bound by a collective agreement that appoints such an employer as a designated employer.
The Employment Equity Regulations, 2025 addresses issues related to work of equal value, the duties imposed on designated employer and further canvasses the enforcement mechanisms.
In respect of work of equal pay, the Regulations seek to eliminate unfair discrimination in employment practices, particularly in relation to remuneration and other terms and conditions of employment. They emphasise that employees performing work of equal value must be compensated equally unless there is a fair and rational justification for any differentiation. The concept of "work of equal value" is defined to include work that is substantially the same as that performed by another employee employed by that employer. The work need not be identical or interchangeable but must be sufficiently similar in that it can be said that they are performing the same job. An objective test is employed in assessing whether work is of equal value, and amongst other things, the responsibility demanded of the work, skills and qualifications, physical, mental and emotional effort required to perform the work are all part of the criteria used.
Where a differentiation occurs, particularly in remuneration between employees who perform work of equal value, the employer can establish that the difference is fair and rational using, amongst other factors, the individuals' respective seniority or length of service, respective qualifications, competence or ability, and respective performance, quality or quantity of work. Any differentiation based directly or indirectly on arbitrary grounds such as disability, religion, HIV status, conscience, belief, political opinion, culture, language, or birth is considered unfair discrimination and is therefore prohibited.
These Regulations also introduces several duties for designated employers, including the duty to collect information and conducting analysis of its employment policies, practices, procedures and the working environment, in order to identify employment barriers which adversely affect people from designated groups as contemplated in s 19 of the Act.
Designated employers also bear a duty to prepare and implement an Employment Equity Plan (EE Plan) for the period starting on 01 September 2025 till 31 August 2030. Further, employers who become designated employers after 01 April 2025, must prepare an EE Plan for the remainder of the period until 31 August 2030.
The minimum requirements for the EE Plan are further stipulated in these Regulations and must conform with s 20 of the Act as well as the elements contained in Form EEA13 of the Regulations.
Designated employers must further comply with the numerical and sectoral targets set out in the Regulations Determination of Sectoral Numerical Targets, published under section 15A (1) and (2) of the Act which set a five (5)-year sectoral numerical targets in eighteen (18) different sectors. These targets must be met by employing designated groups in certain positions. The designated groups are black people (African, Coloured and Indian), women and people with disabilities.
The designated employers are also required to report annually to the Director-General in terms of s 21 of the Act on the implementation of their EE Plan and progress towards meeting their sectoral targets.
Furthermore designated employers are also required to inform the employees by displaying certain information in the workplace, including the most recent report submitted by that employer to the Director-General, any compliance order, arbitration award or order of the Labour Court concerning the provisions of the Act in relation to that employer, and any other document concerning the Act as may be prescribed as required by s 25 of the Act.
These Regulations also establish clear enforcement mechanisms to ensure compliance. A labour inspector may request and obtain a written undertaking in terms of s 36 of the Act if the designated employer has failed to, amongst other things, consult with employees as contemplated in s 16 of the Act, conduct an analysis as required by s 19 of the Act or prepare an employment equity plan as contemplated in s 20 of the Act or publish its report as required by s 22 of the Act.
In addition, the Director-General may conduct a review of the employer's compliance and may require the employer to complete and submit Form EEA7, along with any other supporting documentation deemed necessary to assess the employer's compliance status.
Notably, the EE Compliance Certificate may be withdrawn if it is found that the employer has submitted inaccurate or misleading information, or if the circumstances under which the certificate was issued have materially changed.
The Employment Equity Regulations, 2025 and the Determination of Sectoral Numerical Targets mark a significant development in South Africa's employment equity landscape. Together, these instruments not only strengthen the legal framework governing equality in the workplace but also provide clarity and structure for designated employers in fulfilling their obligations under the Employment Equity Act. Non-compliance with these Regulations and certain provisions of the Act may lead to a fine of up to R1.5 million or 2% of the employer's turnover. It is therefore imperative that designated employers familiarise themselves with the content and requirements of these Regulations and take proactive steps to ensure full compliance.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
