MEDIA STATEMENT: PORTFOLIO COMMITTEE ON EMPLOYMENT AND LABOUR SUPPORTS AMENDED EMPLOYMENT EQUITY ACT OF 1998

The Portfolio Committee on Employment and Labour supports the amended Employment Equity Act of 1998. This is because the amendments are a positive step towards ensuring that workplaces in South Africa reflect the national and provincial demographics of the economically active population.

One of the key amendments is empowering the Minister of Employment and Labour to set employment equity targets for economic sectors and prescribe demographic targets for employers with more than 50 employees. This was a necessary step towards addressing the historical imbalances in the workplace. It is important to note that these amendments do not introduce any new legal obligations on employers.

The existing Employment Equity Act had already required employers to establish their own employment equity targets, considering both national and provincial demographics, as outlined in section 42 of the Act. The sole change brought about by these amendments is that the Minister of Employment and Labour, following consultation with relevant sector stakeholders and advice from the Commission for Employment Equity, has now regulated sector-specific employment equity targets. These targets aim to achieve equitable representation of various groups within their respective economic sectors.

It is crucial to emphasise that sector employment equity targets are not quotas. Employers retain the authority to determine their own annual employment equity targets, aligned with the regulated sector targets. The amendments also require companies seeking to do business with the government to obtain a certificate of compliance from the Department of Employment and Labour. This will ensure that only companies committed to employment equity are able to do business with the government.

The committee believes that the amended Employment Equity Act will help to create a more just and equitable society. We urge all employers to comply with the new Act, which is scheduled for promulgation by 1 September 2023, and work towards creating workplaces that are free from discrimination.

Source: Parliament of South Africa