Employment Equity Amendments FAQ

Question	Answer
When will the EEAA come into effect?	January 1, 2025
Will Regulations and Ministerial Sectoral Targets follow?	Yes, expected around end of Q1, 2025 after final consultations
Can employers get compliance certificates if found guilty of discrimination in 2025?	No, any guilty finding in the 12 months before reporting disqualifies certification
Is a new EEA1 needed for employees?	Yes, likely required due to expanded definition of disabilities
How should questionable race/gender/nationality classifications be handled?	Use ID document numerical structure unless compelling evidence suggests otherwise
What prevents getting a compliance certificate?	- Missing annual targets without justification - Not paying National Minimum Wage - Not submitting annual EE report - Found guilty of discrimination/harassment in past 12 months
How is "designated employer" changing?	Only applies to employers with 50+ employees; turnover threshold removed
Must non-designated employers de-register?	Platform will probably automatically identify employers with <50 employees, but manual deregistration may be necessary
Can non-designated employers get compliance certificates?	Yes, through digital platform by completing qualifying questions on unfair discrimination and harassment as well as national minimum wage
What changes in disability definition?	Now includes intellectual, mental, and sensory impairments affecting employment progress
How do Ministerial Targets work?	Minister sets 2030 targets for designated groups across 18 sectors; employers must analyse representation gaps
Which EAP applies to targets?	Single province: use provincial EAP Multiple provinces: choose national or provincial EAP where most employees are based
How is sector classification determined?	Based on where majority of employee skill sets are
What's needed if targets aren't met?	Detailed documentation of employment decisions to justify non-achievement
What are valid reasons for missing targets?	- No recruitment/promotion opportunities - Lack of suitable skills - Mergers/acquisitions - Business disruptions
What's often overlooked in employment equity?	Building trust through fairness, authenticity, transparency, and honesty
How do EE and BBBEE relate?	- EE measures "Designated Persons"; BBBEE measures "Black" representation targets - BBBEE targets typically higher - No EE compliance may affect BBBEE management control scoring in the future
What are non-compliance penalties?	- Fines over R1.5m / 2% of annual turnover - Labour Court litigation - Tender exclusion - Vicarious liability

Detailed Employment Equity Amendment Act (EEAA) FAQ Reference Guide

Category	Question	Detailed Answer	Key Implications
Implementation Timeline	When will the EEAA come into effect?	The EEAA becomes effective January 1, 2025.	All employers must ensure compliance systems are in place before this date.
Regulatory Framework	Will Regulations and Ministerial Sectoral Targets follow?	Yes, these are expected to be published around Q1 2025 following a final round of consultations.	Organizations should monitor developments and prepare for rapid implementation once published.
Compliance Certification	Can employers receive compliance certificates if found guilty of discrimination in 2025?	No. According to Section 53 of the EEAA, any finding of guilt regarding discrimination or harassment in the 12 months preceding the reporting period will result in automatic disqualification from receiving a compliance certificate.	Employers must maintain strict anti-discrimination policies and procedures throughout the year.
Employee Documentation	Is a new EEA1 required for all employees?	Yes, new documentation will likely be required due to the broadened definition of "persons with disabilities."	Organizations should plan for a comprehensive re-documentation process for all employees.
Classification Guidelines	How should questionable demographic classifications be handled?	Primary method: Use ID document numerical structure as the baseline for classification. Only deviate when there is substantial evidence supporting an alternative classification.	Maintain clear documentation of classification decisions and supporting evidence.
Compliance Requirements	What prevents obtaining a compliance certificate?	Multiple factors can prevent certification: 1.         Failure to achieve annual targets without justification 2.         Non-payment of National Minimum Wage 3.         Failure to submit annual EE report 4.         Guilty verdict for discrimination/harassment in preceding 12 months	Organizations need comprehensive compliance monitoring systems across all these areas.
Organizational Definition	How is "designated employer" status changing?	The definition is simplified to only include employers with 50 or more employees. The annual turnover threshold criterion is eliminated.	Organizations near the 50-employee threshold should carefully monitor their staffing levels.
Registration Status	Must non-designated employers de-register?	The digital platform will automatically identify employers with fewer than 50 employees. Manual de-registration generally won't be necessary.	Employers should verify their status is correctly reflected in the system.
Small Employer Rights	Can non-designated employers obtain compliance certificates?	Yes, through the EE digital platform by completing qualifying questions about: - National minimum wage compliance - Discrimination/harassment record	Maintain records even if no longer designated to ensure ability to obtain certificates when needed.
Disability Definition	What changes are coming to the disability definition?	The definition expands to include: - Intellectual impairments - Mental impairments - Sensory impairments That prejudice ability to enter into and progress within employment	HR systems and policies need updating to reflect broader definition and accommodation requirements.
Target Implementation	How will Ministerial Targets be implemented?	The Minister will publish targets for designated groups that must be achieved by 2030: - Across 18 sectors - Covering management occupational levels - Requires gap analysis between actual and required representation	Organizations need systems to track progress and conduct regular gap analyses.
EAP Application	Which Economically Active Population (EAP) statistics apply?	For single-province operations: Use provincial EAP For multi-province operations: Choice between: - National EAP - Provincial EAP where majority of employees are based	Strategic decision needed for multi-province employers on which EAP to apply.
Sector Classification	How is sector classification determined?	Classification based on where the majority of employee skill sets are concentrated.	Important for determining which sectoral targets apply to the organization.
Target Achievement	What's required if targets aren't met?	Organizations must maintain detailed evidence of all employment transactions to justify non-achievement based on acceptable grounds.	Implement comprehensive documentation system for all employment decisions.
Justifiable Grounds	What are acceptable reasons for missing targets?	Legitimate reasons include: 1.         No recruitment/promotion opportunities 2.         Skills unavailability 3.         Mergers and acquisitions 4.         Business disruptions	Document all circumstances that may qualify as justifiable grounds throughout the year.
Critical Success Factors	What's often overlooked in employment equity?	The fundamental importance of building strong trust relationships between stakeholders through: - Fairness - Authenticity - Transparency - Honesty "Culture eats strategy for breakfast"	Focus on building inclusive culture alongside compliance efforts.
BBBEE Integration	How do EE and BBBEE interact?	Key differences and connections: - EE focuses on "Designated Persons" - BBBEE measures "Black" targets - BBBEE targets typically higher than draft Ministerial Sectoral Targets - Lack of EE compliance may affect BBBEE management control element scoring	Coordinate EE and BBBEE compliance strategies.
Non-Compliance Consequences	What are the penalties for non-compliance?	Serious consequences including: 1.         Fines exceeding R1.5m 2.         Labour Court litigation 3.         Exclusion from tenders 4.         Vicarious liability	Ensure comprehensive compliance program and regular audits.

Note: This reference guide should be used in conjunction with the actual legislation and subsequent regulations when published.

This EEAA FAQ was compiled by former Employment Equity Commissioner and GBS Joint-CEO, John Botha. For any enquiries, please reach out to John, john@globalbusiness.co.za OR get in contact with one of our EE specialists, info@globalbusiness.co.za.

Subjects like the amended Employment Equity Act, will be on the agenda at our must-attend Annual Employment Conference (#AEC25) on the 19th of March 2025. Join John Botha, Johnny Goldberg, Craig Kirchmann, Dr. Mark Bussin, and many more speakers at the conference. Set your organisation up for success in 2025 and register today! (Register here: https://globalretailoutlet.co.za/showevent/73)