The long-awaited Employment Equity Amendment Bill, which will make far-reaching changes to the Employment Equity Act, was published today. It will be introduced in the National Assembly shortly, paving the way to its enactment once the legislative process is complete.
The most significant amendment that it introduces, is the setting of sector-specific employment equity targets, rather than having a one size fits all approach in terms of which the same targets apply across all sectors. This will allow for a more focused and tailored approach to employment equity.
The bill permits the Minister issue a notice that sets “different numerical targets for different occupational levels, sub-sectors or regions within a sector or on the basis of any other relevant factor”. It also requires employers to align the employment equity targets in their employment equity plans with the sector-specific targets applicable to them.
It is not clear, at this stage, how the Minister will differentiate between different sectors and what factors he will take into account in doing so. The bill does not specify this, and instead, leaves this as a matter for the Minister to determine in exercising his powers under the EEA. It remains to be seen whether the scope for a more tailored approach, taking into account sector-specific considerations, will have a meaningful impact on improving employment equity.
Another key change that the bill will bring about, is that an employment equity certificate of compliance will now become a precondition for access to state contracts. This will provide companies with an incentive to be compliant with the targets in the EEA, or to lose the opportunity to contract with the state.
The bill also aims to ease the burden on smaller employers, by providing that employers with fewer than fifty employees will no longer have to report on their employment equity targets, irrespective of their turnover.
A copy of the Employment Equity Amendment Bill, and its memorandum of objects, can be viewed here:
Employment Equity Amendment Bill
