Is the new law already in force?

No, it was assented to by the President on 6 April 2023, but it will take effect on a date fixed by the President by proclamation in the Government Gazette. In a previous media release, the Department of Employment and Labour announced that the amendments would take effect on 1 September 2023, but this still needs to be confirmed.

What is the goal of the new law?

The bill aims to promote the transformation of the South African workforce by setting equity targets for economic sectors and geographic regions and requiring companies to develop transformation plans.

What are the main provisions?

The Amendment Bill authorises the Minister of Labour and Employment to set employment equity targets for economic sectors and regions, also regional targets, as racial diversity in South Africa often presents regional differences.

Employers with over 50 employees must submit employment equity plans for their companies, specifying how they will achieve these goals and submitting annual reports to the Department of Labour and Employment.

The bill also requires employers to pay workers for equal work, identifying discrimination and allowing workers to file complaints with the Commission for Conciliation, Mediation, and Arbitration or the labour courts in the event of discrimination. Moreover, companies doing business with the state will have to submit a certificate from the Department confirming that they comply with the Employment Equity Act and its goals and that they do not pay their employees less than the national minimum wage.

Labour inspectors will have to inspect workplaces and issue compliance orders to ensure the effective implementation of the new provisions.

What are the penalties for non-compliance?

The Employment Equity Act of 1998 already provides that an employer can justify non-compliance with numerical targets to avoid imposing a fine. The amendments introduce some examples of justifiable reasons (insufficient opportunities for recruitment, promotion, or individuals from the designated groups with the relevant qualifications, skills, and experience, mergers and acquisitions, transfers, and impact on the company's economic activities).

The National Employers Association of South Africa (Neasa) strongly disagreed with the bill. Gerhard Papenfus, President of Neasa, said: "Although this amendment is disguised with different terminology, the legislation is nothing more than a race-based quota system imposed on employers. Furthermore, the government has failed to realise that hiring the best person for the job, without exception, is crucial to a company's success. An important difference between the old and new law is that now the Minister will determine targets for all designated employers, which are those employing more than 50 employees, within a specific sector, whereas with the old law, these targets were the responsibility of individual employers, taking into account the economically active population" he said.