The amendments to the Employment Equity Act, No 55 of 1998 will affect businesses in many ways, and some will face consequences if they fail to comply.
It’s well known that South Africa is a diverse nation made up of people of all different races, cultures, religions and economic backgrounds. In order to ensure that all of our people have equal opportunities to enter the workplace, companies must comply with the Employment Equity Act, No 55 of 1998. This means that companies have a responsibility to meet certain criteria when hiring new staff, whether they do so independently or through employment professionals like us at Express Employment Professionals.
To ensure that we as a nation remain mindful and considerate of our people, laws and legislation (including the Employment Equity Act, No 55 of 1998) are regularly reviewed and, where applicable, amended. The Employment Equity Act, No 55 of 1998 has been amended, implemented from October 2021 with hopes of the amended act taking full effect by March 2022 once the parliamentary processes have been finalised.
Amendments to the Employment Equity Act of 1998 are intended to accomplish the following:
- Small businesses should face fewer regulatory burdens
- Provide for sector-specific EE numbers to be regulated by the Employment and Labour Minister
- Issuing EE Compliance Certificates shall be governed by Section 53 of the EEA.
The amended bill aims to eliminate existing employment equity plans by September of this year. It also seeks to guarantee that all new employment equity plans are set in alignment with the new five-year targets set by the Employment and Labour Minister.
For businesses, one of the act’s amendments will implement sector-specific targets for Employment Equity as well as how Employment Equity Compliance Certificates are issued to companies. Companies have no access to state contracts or tender opportunities without a compliance certificate and may even face fines.
How We Can Help
At Express Employment Professionals, we ourselves are Level 1 BBBEE contributors. As recruitment experts, we stay up to date with all laws and legislation affecting employment and hiring in South Africa, including the Employment Equity Act, No 55 of 1998 and its amendments. When you are looking to make new hires that comply with the Act, there’s no one better to turn to for assistance than the Express Employment Professionals Team. For any assistance or to get in touch, simply visit our website