New Employment Equity Rules Now in Effect – What Accountants Should Know

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Department of Employment and Labour published two new sets of Employment Equity (EE) Regulations on 15 April 2025 following the EE Amendment Act earlier this year. These regulations aim to standardise reporting, provide implementation guidelines, and establish five-year sector-specific EE targets across eighteen economic sectors, requiring designated employers to align their EE plans accordingly. Small employers with fewer than fifty employees are no longer required to comply with Chapter III of the EEA but are encouraged to maintain their details in the Department's database to request an EE Certificate of Compliance without re-registration.

Here’s what’s new in 2025

1. General EE Regulations – These include new reporting forms, templates for EE analysis and plans, enforcement tools, and a standard format for the EE Certificate of Compliance.

2. Sector Targets – For the first time, specific five-year numerical targets have been set for 18 sectors. These apply to top, senior, middle, and junior management levels, including targets for people with disabilities.

3. Stricter compliance and enforcement mechanisms have been introduced.

4. Sectoral numerical targets are legally binding and must guide all EE Plan target-setting.

Why this matters

✅ Large employers (50+ employees) must review and align their EE plans with the new sector targets immediately.

• Designated employers must develop and implement an Employment Equity (EE) Plan covering the period from 1 September 2025 to 31 August 2030.

• If an employer becomes designated after 1 April 2025, the EE Plan must cover the remaining time until 31 August 2030.

✅ Smaller employers (<50 employees) no longer need to submit EE plans and annual reports – but don’t rush to deregister. The Department will manage this automatically, allowing access to certificates if needed.

The Department of Employment and Labour will run national workshops in May and June 2025. Further details will be communicated.

📄 EE Plan Requirements

Designated employers must:

1. Use the EEA13 Template
   – This is a prescribed format for the EE Plan under the 2025 Regulations.

2. Follow the Codes of Good Practice
   – These are issued under Section 54 of the Employment Equity Act and provide guidance on how to apply EE principles effectively.

3. Include these key elements when setting annual numerical targets:

   • 🧑‍🤝‍🧑 Workforce Profile – Your current employee demographics.

   • 📊 5-Year Sectoral Numerical Targets – Targets published by the Minister for your industry sector.

   • 📌 EAP (Economically Active Population) – Demographic data used to set equitable representation goals.