Executives say the amendments to the bill will hold companies accountable in ensuring compliance.
The signing into law of the Employment Equity Amendment Bill of 2020 by President Cyril Ramaphosa on 12 April 2023 is a welcome and long overdue development, say leading HR executives.
The amendment is a further attempt by the government to advance transformation of the local workforce by setting new measures to promote diversity and equality in the workplace. Although an implementation date is yet to be announced, three key matters have been highlighted: first, employers with more than 50 employees have to submit employment equity plans for their companies, spelling out how they will achieve these targets, and are furthermore required to submit yearly reports to the Department of Employment and Labour.
Second, the new law has empowered the Minister of Employment and Labour to set employment-equity targets for certain economic sectors as well as regions where transformation is lagging.
Third, the law also now requires that companies seeking to do business with the state will be required to submit a certificate from the department confirming that they are in compliance with the Employment Equity Act and its objectives, and that they do not pay their employees less than the national minimum wage.
The other significant change includes the development of a new EE online assessment system that will aid in monitoring the implementation of sector targets. Previously the administration was done manually.
Neridha Moodley, head of people and culture at SNG Grant Thornton, says the amendments are needed, as it forces companies to be accountable in ensuring compliance and monitoring the progress of equitable transformation in the workplace. “Companies should comply with the EE amendment bill to aid the government in reducing unemployment in the country overall and again allowing fair and equitable access to all,” she notes. “The ability of the Minister of Employment and Labour to set economic sector specific employment equity targets will promote transformation in sectors and regions where it has been lagging. However, it is key that the department enforces these amendments by ensuring that compliance audits are actioned, and strict corrective measures are put in place.”
Phil Tshikotshi, vice president for human resources at Startek, says the change was needed and urges the HR community as a whole to consider the possible shortcomings of the law. “In my opinion, the Act has not achieved its intended purpose, owing to various reasons, which include lack of proper implementation, tracking and enforcing the necessary penalties. We should therefore seriously ponder whether the law (in its current form) is what we need today to drive transformation.”
He highlighted that the intent of the EE Compliance Certificate is to ensure that those who do business with the state are compliant, which may aid compliance to a certain extent, however, the amendments are silent on organisations that do not conduct business with the state, he says. “It is clear that they are only expected to comply with the law, however this is something that has been in place for the last 24 years and has not achieved much so far as driving transformation is concerned.”
Phylla Jele, HR and transformation executive at digital solutions firm e4, agrees with these sentiments, adding that the empowering of the minister and the Department of Labour to have a much closer examination of underdevelopment when it comes to equity matters in certain sectors and regions will be beneficial. “In essence, the whole Employment Equity Act viewed holistically informed this particular amendment. It was a natural progression,” she says. “The HR world has always discussed how crucial diversity, equity and inclusion are from a monitoring perspective and this amendment will, to a huge extent, address this.”
Phylla concludes that the large concern for the general public on this significant change is that companies will be required to implement measures to ensure suitably qualified people from designated groups have equal employment opportunities, “and that these people are represented at all occupational levels in the workplace. With our country’s history, businesses will do well to stay accountable for this aspect of compliance.”
