Who Must Comply with Employment Equity?
Not every company in South Africa is required to comply with Employment Equity legislation — but if you meet the criteria of a designated employer, compliance is non-negotiable. Understanding whether you fall into this category is the first step in fulfilling your legal obligations and avoiding penalties.
What Is a Designated Employer?
You employ 50 or more employees, regardless of turnover
Your annual turnover exceeds the industry threshold (as set out in Schedule 4 of the Act)
You are a municipality, organ of state, or government department
You voluntarily registered as a designated employer
Even if your business has fewer than 50 employees, if your turnover exceeds the sector limit, you are still expected to comply
Industry Turnover Thresholds
| Sector | Annual Turnover Threshold | ||
|---|---|---|---|
|
Agriculture |
R6 million |
||
|
Manufacturing |
R30 million |
||
|
Retail & Wholesale Trade |
R45 million |
||
|
Construction |
R15 million |
||
|
Finance & Business Services |
R30 million |
For the full list, consult the Department of Labour or our downloadable EE Checklist.
What Is a Designated Employer?
Establish an EE Committee
Develop and implement a valid EE Plan
Submit annual EEA2 and EEA4 reports
Consult meaningfully with stakeholders
Keep records and be ready for audits
What If I'm Unsure?
If you’re not sure whether you meet the criteria, or if your headcount and revenue fluctuate, our team can assess your status and guide your next steps.
Don’t guess — let’s check.
We’ll confirm your status and help you take action. Contact us for a quick employer assessment.