The new draft regulations on proposed sectoral numerical targets

The Employment Equity Amendment Act 4 of 2022 ("Amendment Act") was introduced in April 2023 but has yet to be signed into law. To address the sectoral numerical targets provided, new draft regulations were issued for comment on 1 February 2024.Here are some things to expect should the new regulations be signed:

Here are key points to expect should the new regulations be enacted:

• The act proposes that designated employers follow 5-year numerical targets.
• The drafted regulations provide guidance on developing Employment Equity plans.
• Employers must consider their current workforce profile and compare it to the relevant sector numerical targets and the Economically Active Population (EAP) for each occupational level. This should then be used to set annual numerical targets for each of the 5 years.
• Employers should firstly strive to meet the sector numerical targets applicable to them and then aim to achieve the applicable EAP.
• Employers are advised not to set targets for groups whose representation already meets or exceeds the EAP in each occupational level, however employers may not regress if they have met the set numerical targets of a particular group in an occupational level.
• Employers should particularly focus on upper occupational levels (Top Management, Senior Management, Professionally Qualified, and Skilled Technical) and set annual numerical targets for these levels.
• Even though there have been no suggested numerical targets set for the lower levels ( Semi-Skilled and Unskilled ) employers should still continue to set annual numerical target goals.
• The national EAP will apply to designated employers conducting business nationally, while the provincial EAP will apply to businesses within a particular province. Employers cannot use both national and provincial targets simultaneously.
• When conducting business in more than 1 province the employer may use the provincial targets set for the province with the majority of employees.
• If employers conduct business in more than one sector, they should choose the sector with the most employees.
• A significant change is that the respective racial designations of African, Coloured, and Indian will be classified under one category as “Designated Group,” differentiated by male and female. Employers must still differentiate between various racial groups in their annual targets and consider the EAP when doing so.
• No absolute barrier may be placed on any employment practices affecting any person from any racial group.
• Justifiable/ reasonable grounds for non-compliance such as insufficient recruitment opportunities or transfer of business will prevent a penalty or other form of disadvantage.
  
  

We hope this overview provides clarity on the new proposed sectoral numerical targets. Compliance with these proposed targets will be crucial for businesses planning to conduct business with the state, as they will need to apply for an Employment Equity Compliance Certificate in the future.