Employment Equity Act (amended): Draft regulations on proposed 5-year Sectoral Numerical targets

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Employment Equity Act (amended): Draft regulations on proposed 5-year Sectoral Numerical targets

• 08 February 2024
• Legal and Compliance
• South African Accounting Academy

The proposed 5-year sectoral numerical targets are minimum targets and are key milestones towards achieving the equitable representation of the different designated groups within each occupational level in that employer’s workforce about the demographics of their applicable economically active population (EAP).

The proposed 5-year sectoral numerical targets for the various population groups and genders are set out in tables at the various levels of employment (i.e. top management, senior management, professionally qualified & middle management, skilled technical and disability only) for each of the economic sectors listed.

The list of economic sectors (EEA17) consists of:

1. Agriculture, Forestry & Fishing

2. Mining and Quarrying

3. Manufacturing

4. Construction

5. Financial and Insurance Activities

6. Transportation and Storage

7. Information and Communication

8. Water Supply, Sewerage, Waste Management and Remediation Activities

9. Electricity, Gast Steam and Air Conditioning Supply

10.  Human Health and Social Work Activities

11. Arts, Entertainment and Recreation

12. Real Estate Activities

13. Professional, Scientific and Technical Activities

14. Wholesale and Retail Trade, Repair of Motor Vehicles and Motorcycles

15. Accommodation and Food Service Activities

16. Public Administration and Defence, Compulsory Social Security

17. Education

18. Administrative and Support Activities

The following items are also discussed in the notice:

• Which factors were taken into account when setting the proposed 5-year sectoral numerical targets

• Factors that designated employers must take into account when developing the EE plans (in terms of Section 20(2)of the EEA)

• Implementation of Affirmative Action measures

Comments are due by 1 May 2024.

Refer to our previous alert on this topic dated 26 July 2023.

Click here to download the Gazetted Notice:

https://www.labour.gov.za/DocumentCenter/Regulations%20and%20Notices/Notices/Employment%20Equity/Draft%20regulations%20on%20proposed%20Sectoral%20Numerical%20targets%20Gazetted%20on%201%20February%202024.pdf

Relevance to Auditors, Independent Reviewers & Accountants:

• The Employment Equity Act is yet another piece of legislation that your clients must comply with, and which you must assess compliance with.  If they don’t comply with the relevant laws and regulations, you have certain reporting obligations in terms of NOCLAR (Non-Compliance with Laws And Regulations) – this could include reporting to management, qualifying your audit opinion, reporting a Reportable Irregularity, etc.

• As an auditor, independent reviewer and accountant, you should be aware of amendments to the Employment Equity Act, so that you can assess the impact thereof on your clients and when the changes will take effect.

• If you meet the definition of a “designated employer”, you also need to comply with the Employment Equity Act in your workplace.

Relevance to Your Clients:

• A designated employer (those who employ 50 or more employees) must comply with the Employment Equity Act, otherwise they could be held liable.

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