Designated employers and employment equity plans

The Constitution of the Republic of South Africa, 1996 is built on a fundamental principle of the achievement of equality. Section 9 of the Constitution recognises that equality has two critical dimensions. The first, known as formal equality, prohibits unfair discrimination and ensures equal treatment for all individuals. The second, referred to as substantive equality, goes a step further by acknowledging the need to examine the social and economic conditions of individuals and groups. This approach focuses on implementing remedial measures to address historical disadvantages, which aligns with its goal of achieving true or meaningful equality, not just formal equality.

The Employment Equity Act, No. 55 of 1998, as amended (hereinafter the EEA) was passed to align with the aforementioned principles. The primary purpose of this Act is to eliminate unfair discrimination in the workplace and to ensure that affirmative action measures are implemented. These measures are designed to ensure that suitably qualified individuals from designated groups are afforded equal employment opportunities. Through this framework, the EEA aims to ensure fair representation at all occupational levels within the workforce.

What is an employment equity plan

A key component of the EEA is the requirement for designated employers to design and implement an employment equity plan. The purpose of this plan is to enable employers to make reasonable progress toward achieving employment equity within their businesses. By implementing an employment equity plan, employers demonstrate their commitment to eliminating unfair discrimination in the workplace and to achieving equitable representation of designated groups through affirmative action measures.

Who is considered to be a designated employer

Under the EEA a designated employer means:

• Employers who employ 50 or more employees
• A municipality, as referred to in Chapter 7 of the Constitution
• An organ of state as defined in Section 239 of the Constitution, but excluding the National Defence Force, the National Intelligence Agency and the South African Secret Service
• Employers who have been declared designated employers under a collective agreement

These designated employers are legally required to implement employment equity plans in their workplaces.

Key issues considered in the employment equity plan

An employment equity plan must clearly detail the actions an employer will take to meet employment equity objectives. This includes setting annual targets, implementing affirmative action measures and establishing numerical goals to ensure fair representation of designated groups. The plan should also outline timelines for achieving both numerical and non-numerical goals, include a monitoring and evaluation process, define procedures for resolving disputes, and identify the individuals responsible for implementation.

The Employment Equity Amendment Act, No. 4 of 2022 became operational from 1 January 2025. Subsequently, two sets of employment equity regulations on reporting forms and other templates, as well as the five year sector employment equity targets for the 18 economic sectors were published on 15 April 2025, providing guidelines to employers and employees on how to interpret and implement the recent employment equity amendments and sector targets.

Following recent amendments, employers are now required to adopt a five year employment equity plan covering the period from 1 September 2025 to 31 August 2030. Employers who become designated after this period begins may develop a plan that spans the remaining duration.

Reporting period for online submissions

The online reporting window generally runs from the first working day of September until the 15th of January of the next year for online submissions. The online submission employment equity portal opened on 1 September 2025 and the closing date for submissions is 15 January 2026.

Consequences of non-compliance

Failure to comply with the EEA can have serious legal and financial repercussions for designated employers. The Labour court also has extensive powers under the Act, including the authority to impose fines up to and including R 2,7 million or 10% of the employer’s annual turnover, whichever is the greater.

For designated employers, implementing an employment equity plan is not just a legal obligation but a necessary step toward building an inclusive workplace. By engaging with employees, analysing policies and reporting progress, employers can ensure they contribute to the broader goal of achieving true equality in South Africa’s workforce.

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