The amended Employment Equity (EE) Act, which empowers the Employment and Labour Minister to regulate sector-specific EE targets and to regulate compliance criteria to issue EE Compliance Certificates in terms of Section 53 of the Act, is expected to come into force on September 1, 2023.
Department of Employment and Labour (DEL) labour policy and industrial relations acting deputy director-general (DDG) Thembinkosi Mkalipi says the signing of the Bill by President Cyril Ramaphosa is imminent, with this expected to happen between now and the beginning of 2023.
The EE Amendment Bill 2020 was passed by Parliament (National Assembly and National Council of Provinces) on May 27, but must still be assented to and signed into law by the President.
The main objectives of the amendments are to empower the Minister to regulate sector-specific EE targets and to regulate compliance criteria to issue EE Compliance Certificates.
This means that organisations that do business with the State will have to be in good standing when it comes to compliance with EE.
Mkalipi cautions that even those businesses that do not necessarily do business directly with the State will have to comply with the law.
Engagements on the setting of sector-specific EE targets started from June 2019 and will be completed by the end of September.
Mkalipi was speaking at the Eastcape Training Centre, in Gqeberha, on August 31, during the joint DEL and Commission for Conciliation, Mediation and Arbitration 2022 Employment Equity workshop.
He says the DEL will, in due course, publish the list of sector targets for public comment.
“The implication for employers is that if you have an EE plan in place it will be affected by the setting of targets and you will have to revisit your targets,” Mkalipi notes.
According to him, 18 sectors have been consulted on the setting of EE targets.
Some of the sectors consulted include education; water supply, sewerage management and remediation; accommodation and food services; human health and social work; agriculture, forestry and fishing; wholesale and retail trade; repair of motor vehicles and motorcycles; administrative and support; professional, scientific and technical; electricity, gas steam and air conditioning supply; and financial and insurance activities.
The remaining sectors that are to be consulted between now and the end of September include mining and quarrying; public administration and defence, manufacturing, information and communication; and construction and real estate.
Mkalipi informs that a new EE online assessment system will be created to monitor the implementation of sector targets, with the assessment to be done yearly.
He says the system will allow employers to report on their planned targets and how they intend to achieve those.
Mkalipi notes that, in the 2024 financial year, the first year after the first sector target-setting period – the system will be able to tell whether employers are achieving their target plans.
He notes that if employers are not meeting their set target, they will need to have justifiable reasons for this.
“The system will accept, in good faith, all the information supplied. The DEL will, through the inspectorate, visit workplaces to verify if information submitted is genuine,” Mkalipi says.
He warns that if what has been submitted is not genuine, a Certificate of Compliance will be withdrawn and penalties will kick in.