Employment Equity Amendments

 

Using Barriers for your benefit. 

On 13 April 2023, the Employment Equity Amendment Act was published and officially promulgated on 1 January 2025. The Employment Equity Act serves to assist individuals who was previously disadvantaged in the workplace, from receiving equal opportunities in the workplace. In addition, the Employment Equity Act creates guidelines for businesses in the workplace, of making their work environment more equitable. The Employment Equity Act does this in two ways: 

– Identifying and addressing various processes in the workplace that could act as barriers for previously disadvantaged groups.  

– By utilising the addressed barriers to create clear Numerical Goals & Targets to create a more equitable workplace. 

Prior to the amendments of the Employment Equity Act, employers had a degree of autonomy when creating their Numerical Goals & Targets, however, this was one of the key principles that were addressed with the amended Employment Equity Act. 

The amendments empowered the Minister of Labour to set sector specific Numerical Goals and Targets for businesses. Subsequently, said businesses much strive to reach these Numerical Goals and Targets within the next five years or risk being deemed non-compliant and receiving fines. The amended Employment Equity Act, however, does not completely remove the discretionary powers of designated employers in establishing their Numerical Goals & Targets. Although sector specific targets are given by the Minister of Labour, the designated employer reserve their discretion on how these Numerical Goals & Targets will be divided between race and gender, so long as the Company strives to make the workplace more equitable. 

Unfortunately, indicating that a barrier was addressed, and subsequently moving on to the next barrier, will no longer suffice. The business is now obligated to prove these barriers were properly implemented, monitored and adjusted to ensure the barrier obtains the intention for what it was developed.

Given prior legislation in South Africa, reaching Numerical Goals & Targets can be difficult. This is substantiated by the fact that in certain areas of the country, there is a scarcity in skills from previously disadvantaged groups. There are numerous ways in which this can be addressed, however, addressing these barriers does not always allow the business the ability to make their workplace more equitable. In addition, should a business reach their Numerical Goals & Targets, there is a possibility that the sustainability of the workplace, accompanied by their operations, could be compromised. 

For the benefit of the business, the Employment Equity Act identifies various processes that could assist in making the workplace more equitable whilst simultaneously ensuring sustainability. The key is to ensure the way barriers are addressed, is in line with the long-term strategy of the business. Majority of the addressed barriers must contain processes, that if implemented correctly, can greatly enhance the potential of the workforce. This can be done irrespective if your workforces contain individuals from designated groups. 

How Danshaw can help:

Danshaw offers a range of services focusing on each barrier in the workplace and aligning them with the overall business objectives. We believe that the majority of the barriers stipulated in the Employment Equity Act, are processes that each business should have, irrespective if they are deemed a designated employer, or not. In addition, these barriers must be actively monitored and adjusted by senior management to ensure the process reach their designed purpose. By using Danshaw, we can assist your company in identifying the barriers, developing obtainable Numerical Goals & Targets, whilst ensuring your workforce gives your business a strategic edge. 

 

Written by Shaun Raubenheimer