Following the conclusion of the first reporting period under the amended Employment Equity Act, the Department of Employment and Labour (DEL) is now moving to an aggressive enforcement phase.
The department is training more inspectors, which has significantly increased the probability of a company facing an inspection.
The Employment Equity Amendment Act of 2022 became operational in January 2025 and primarily applies to businesses that employ 50 or more people.
The law requires these organisations to develop new employment equity plans that show how they will transform their workforce to reflect the country’s demographics at all levels.
To achieve this, the department set specific numerical targets across 18 industries in South Africa for businesses to fill with ‘designated employees’.
These employees include black (African, Coloured and Indian), female and disabled workers.
A practical example of how this would work is, by 2030, designated employers in the accommodation and food service sector should have 56.7% of top management from ‘designated groups’—38.1% of which should be female.
In the same industry, 78.3% of senior management should reflect these groups.
84.7% of professional and middle-management positions and 95.9% of skilled technical employees should also be filled by individuals from designated groups.
Failure to comply with this law could result in employers facing fines of up to R1.5 million or 2% of turnover.
It could also result in the withdrawal of their Employment Equity Compliance Certificates, which are necessary for state contracts.
Requirements for employers
The BEE Chamber Human Capital Transformation Specialist, Frik Boonzaaier, said that inspectors expect to see evidence of “continuous, meaningful progress toward targets” rather than a polished report submitted once a year.
Companies that manage this process reactively or leave documentation until the last minute face significant risks.
Oversight should be at the executive level, actively managed by HR, and regularly reviewed by the Employment Equity Committee.
“To navigate this new reality successfully, companies must embed robust monitoring and record-keeping into everyday operations,” said Boonzaaier.
Quarterly Employment Equity Committee meetings are the “minimum standard,” and inspectors will require proof in the form of agendas, attendance registers, and detailed minutes.
Boonzaaier emphasised the importance of the paper trail for meetings, warning of consequences for non-compliance.
Accurate documentation of recruitment cycles is critical if a company does not meet targets, and records must be broken down by race, gender, and disability.
These records should include:
- The total applicant count
- How many applicants passed the initial screening based on inherent requirements
- The shortlisted candidates
- The number forwarded at each stage of the process
- How often recruiters searched externally for priority candidates from underrepresented designated groups
- Clear justifications and evidence for appointing non-priority candidates
- The availability of priority candidates within the internal pipeline
Companies must document the difference between planned and actual vacancies to demonstrate that any failure to meet targets was due to legitimate operational realities rather than negligence.
If a company cannot hire as planned because of restructuring, mergers, acquisitions, or broader economic factors, this must be explicitly recorded.
Without this evidence, a failure to meet targets may be treated as non-compliance rather than a business necessity.
“The most practical approach is simple: assume an inspection is coming,” said Boonzaaier. “The cost of being unprepared is high, both financially and reputationally.”
“Those that treat the process with the seriousness it demands, embedding monitoring and documentation into daily operations, will not only survive inspections but position themselves as responsible employers according to the legislation requirements,” he said.
Source: https://businesstech.co.za/news/business/851195/major-bee-warning-for-employers-in-south-africa/