The Department of Employment and Labour (DoEL) has published the Employment Equity Regulations, 2025 under the Employment Equity Act 55 of 1998 (EEA), as amended. This was published together with the notice identifying national economic sectors and determining the sectoral numerical targets, effective from 15 April 2025.
The effect of the 2025 regulations is that designated employers must ensure compliance with more stringent employment equity requirements. Heightened responsibilities for employers now apply under the updated legislative framework. The DoEL has reaffirmed its commitment to workplace transformation and signalled a renewed focus on implementing employment equity legislation.
The introduction of economic sectors targets
DoEL has intensified its efforts to keep workplace transformation and employment equity at the forefront of South Africa’s labour landscape.
In light of the recent amendments to the EEA and the sectoral numerical targets, which became effective on 15 April 2025, employers are now required to implement more robust measures to remain compliant.
The DoEL has identified 18 national economic sectors. Each sector has specific numerical targets. To review the Determination of Sector Numerical Targets, click here.
The employment sector has welcomed the publication of:
- The General Administrative Regulations, which cover Employment Equity (EE) reporting forms, plan templates, enforcement mechanisms, and compliance certificate formats.
- The regulations on 5-Year Sector Employment Equity Targets define specific targets for each sector.
Employment equity planning and reporting
Designated employers must prepare and implement their Employment Equity Plans (EEPs) and set numerical goals aligned with 5-year sectoral targets by 31 August 2025. The revised reporting cycle for sector targets will then run from 1 September 2025 to 31 August 2030.
Employers who become designated employers after 1 April 2025 must prepare an EEP for the remainder of the period until 31 August 2030. A designated employer must refer to the relevant Codes of Good Practice issued in terms of section 54 of the Act when preparing an EEP.
New EEPs must be informed by both qualitative and quantitative analyses. Affirmative action measures must be designed to achieve the numerical goals and sectoral targets. Recruitment, promotions and workforce planning should be aligned accordingly.
Heightened responsibilities for employers in this phase mean ensuring that all plans are not only compliant but also action-driven.
Justification of non-compliance
The 2025 Regulations outline reasonable grounds an employer may rely on to justify non-compliance with sectoral numerical targets. However, the burden of proof rests with the employer. If non-compliance is challenged, the employer must substantiate its position with clear, documented evidence.
Recognised justifiable grounds for non-compliance include:
- Insufficient recruitment opportunities.
- Insufficient promotion opportunities.
- A lack of target individuals from designated groups with the relevant qualifications, prior learning, relevant experience or capacity to acquire the ability to do the job within a reasonable time.
- The impact of a CCMA award or court order.
- The impact of a transfer of business.
- The impact of mergers or acquisitions.
- Economic circumstances affecting the business.
Notably, it is unlikely that such grounds will be accepted at face value. Companies should expect a detailed interrogation to determine if the grounds are reasonable. Unjustified non-compliance may result in disqualification from state contracts, financial penalties and reputational harm.
Employers are encouraged to maintain comprehensive records and strengthen administrative processes to support any defence of non-compliance. Heightened responsibilities for employers in this regard include proactive documentation and audit readiness.
Compliance certificate – a gateway to state contracts
Amendments to section 53 of the EEA introduce enhanced compliance obligations for employers doing business with the state. Designated employers must obtain a certificate of compliance from the DoEL to qualify for state contracts.
The minister may issue the certificate only if satisfied that the employer has:
- Complied with applicable sectoral targets.
- Provided a reasonable justification for any unmet target.
- Submitted the required report in terms of section 21.
- Not had a finding against it by the CCMA or a court in the past 12 months for unfair discrimination under Chapter 2.
- Not had a CCMA award issued against it in the past 12 months for failing to pay the minimum wage under the National Minimum Wage Act of 2018.
Administrative oversight and record-keeping
Given the stricter compliance framework, employers must enhance their administrative processes. They should maintain detailed records of all documentation, analyses, and implementation efforts. This is especially critical where an employer may rely on justifiable grounds for non-compliance.
Upskilling forums and line management
Effective employment equity implementation relies on well-informed and empowered decision-makers. Employers must prioritise the training and upskilling of line managers and employment equity forum representatives, especially those involved in recruitment and promotion processes.
It is equally important to establish and support representative forums with adequately trained members. These forums play a key role in championing diversity, inclusion, and meaningful transformation within the workplace.
Expanded definition of disability
The definition of “people with disabilities” has been expanded. It now includes individuals with long-term or recurring physical, mental, intellectual or sensory impairments that may substantially limit their prospects of entry or advancement in the workplace.
In line with this, the proposed employment equity target for persons with disabilities has increased to 3%. Employers may need to update their EEA1 declaration forms and internal processes to ensure accurate self-identification and representation in their EEPs.
Next steps for employers
Given the scope and implications of the amendments, employers should:
- Begin reviewing and updating their EEPs.
- Enhance record-keeping and administrative oversight to prepare for audits and compliance reviews.
- Proactively upskill line managers and forum representatives.
- Align workforce planning strategies with sectoral targets.
- Ensure systems are in place to meet compliance certificate requirements.
The amendments send a clear message. Employment equity is not a tick-box exercise, but a fundamental element of doing business in South Africa. Employers must act now to future-proof compliance and support meaningful workplace transformation.
| Dhevarsha Ramjettan | Partner | mail me | |  |
| Kanyiso Kezile | Trainee Attorney | mail me | |  |
| Mufaro Sambaza | Candidate Attorney | mail me | |  |
| | Webber Wentzel | | |
