Cliffe Dekker Hofmeyr’s (CDH) employment law team has published a Guide on Employment Equity Act Amendments.
Article:
The Employment Equity Act Amendments will be effective on 1 January 2025.
The amendments introduce 2 significant changes:
The amendments restrict the application of certain sections of the Employment Equity Act to a reduced group of employers, relieving the administrative burden on smaller employers.
The amendments introduce sectoral numerical targets to ensure equitable representation of historically disadvantaged groups based on race, gender, and disability at all occupational levels in the workforce. Currently, no final sectoral numerical targets have been published.
As the amendments will be effective shortly, staying prepared is not just an advantage—it’s essential.
Relevance to Auditors, Independent Reviewers & Accountants:
The Employment Equity Amendment Act and Regulations 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 employer with more than 50 employees, you also need to submit EE report in your workplace.
Relevance to Your Clients:
An entity with more than 50 employees (company or close corporation) has a duty to comply with the Employment Equity Act, and directors have to fulfil their duties accordingly, otherwise they could be held liable.
An employer needs to then submit EE reports annually by the deadline date.
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