The draft Code introduces several changes, of which the following are the most significant:
- Integration of sectoral numerical targets: The single most consequential change is the integration of the mandatory five-year sectoral employment equity target regime under section 15A of the Employment Equity Amendment Act 4 of 2022. Employers must identify their applicable economic sector via the Minister’s section 15A notice and form EEA17, set numerical goals and annual targets at semi-skilled and unskilled levels under section 20(2), avoid perpetuating over-representation, and continue to target the economically active population (EAP) even where sector targets are already exceeded. The purpose is to align the Draft Code with the relevant EEA amendments.
- Reporting compliance linked to section 53(2) certificate: No certificate of compliance may be issued under section 53(2) unless a compliant report was submitted in the preceding year, with a first year grace period for newly designated employers.
- Tightened governance obligations: The draft imposes a duty to begin preparing an EE Plan as soon as an employer becomes designated, requires the assignment of accountable senior managers at the monitoring stage, and mandates that monitoring progress reports be discussed in the consultative forum.
- New definitions section: A formal definitions section is included and imports the statutory “designated employer” threshold (50 or more employees, or 1–49 employees for organs of state or employers bound by a section 23 or 31 LRA collective agreement).
- Expanded workforce analysis: The purpose of the workforce analysis is broadened to cover over representation as well as under representation of designated groups.
The Draft Code is not yet binding. Stakeholders are encouraged to consider making submissions before the 22 September 2026 deadline.