Legal obligation under the Employment Equity Act
If you are a designated employer, compliance with the Employment Equity Act (EE Act) is a legal obligation. The Act requires you to eliminate unfair discrimination and implement affirmative action measures, supported by a documented plan and regular reporting.
Amendments effective 1 January 2025 refine who qualifies as a designated employer and tighten reporting duties. Non-compliance can trigger substantial fines and corrective directives.
What the law requires
Consult meaningfully
Consult with recognised trade unions, workplace forums or elected representatives on your analysis, Employment Equity Plan and ongoing monitoring/reporting.
Conduct an analysis
Analyse employment policies, practices and your workforce profile to identify barriers and under-representation of designated groups.
Prepare an EE Plan
Create a 1–5 year plan with objectives, numerical goals/targets, timelines, affirmative action measures, and monitoring & evaluation procedures.
Report to the DG
Submit EEA2 & EEA4 by the prescribed deadlines (frequency depends on size). Listed/public entities must publish a summary in their annual reports.
Assign & train responsibility
Appoint one or more senior managers to drive implementation; ensure appropriate training and direct accountability to top management.
Address pay gaps
Identify and report income differentials (race & gender) and address unjustified disparities using the prescribed forms.
Prepare for DG reviews
The Director-General may assess compliance, request information and direct corrective steps. Keep documentation audit-ready.
State contracting
To do business with the state, you must hold a valid certificate confirming compliance with the EE Act.
Penalties for non-compliance
Significant administrative fines apply for failures such as not consulting, not analysing, not implementing an EE Plan or not reporting. Repeat contraventions escalate the amounts and may include turnover-based thresholds.
See the fines tableThis page is a practical summary. Always consult the Act, regulations and current government notices.
Next steps
Get your timeline right
Plan internal sign-offs 2–3 weeks before each reporting deadline.
View deadlinesMake it easy with Speccon
Capture data, draft your EE Plan, generate EEA2/EEA4 and assign training in one platform.
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