Can you do business with government?
Under the Employment Equity Act, designated employers must be compliant to qualify for state contracts. If you’re not compliant, your bids can be disqualified and awards withheld.
In practice this means maintaining a valid Employment Equity compliance posture and, where required, holding an EE compliance certificate confirming that you meet the Act’s requirements.
Why Employment Equity is a gate for state business
Legal basis
State contracts may require proof that you comply with the Employment Equity Act—typically by presenting an EE compliance certificate or equivalent confirmation.
Tender conditions
Bid documents from organs of state often set Employment Equity compliance as a pre-qualification criterion. Missing or expired proof can lead to rejection.
Award verification
Contracting authorities can verify your submissions—EEA2/EEA4, EE Plan, and any DG correspondence—to confirm your status before award.
Who this affects
National & provincial departments, municipalities, public entities and SOEs typically apply EE compliance requirements in their procurement.
Requirements can vary by institution and bid; always follow the specific tender data and the latest Employment Equity guidance.
What you’ll typically need to submit
EE compliance certificate
Proof of compliance (or equivalent confirmation) valid for the period of the bid. Treat as mandatory where requested.
EEA2 & EEA4 submissions
Latest submitted forms and receipts to substantiate your status and remuneration differentials reporting.
Employment Equity Plan
Current, approved EE Plan with goals/targets, timelines and monitoring procedures (1–5 years).
Consultation records
Minutes, attendance registers and appointment letters of forum/committee members (s16–17 & s24).
Organogram & payroll extracts
Role mapping and workforce profile consistent with your EEA2/EEA4 and EE Plan.
DG correspondence
Any assessments (s43–44), directives or remedial steps—and proof that you’ve addressed them.
Keep an “audit pack” ready so you can attach the required documents quickly during bid submission and award due diligence.
How to become tender-ready
- Confirm you are a designated employer; assign senior responsibility and constitute an EE forum (s16–17 & s24).
- Complete the section 19 analysis (policies, practices, workforce profile and barriers).
- Approve a 1–5 year Employment Equity Plan (s20) with numerical goals, measures and monitoring.
- Submit EEA2 & EEA4 on time (s21–22); address any DG findings (s43–44).
- Apply for/maintain your EE compliance certificate (s53) and track expiry relative to tender dates.
Risks of non-compliance
- Bid disqualification where EE proof is a gate requirement.
- Awards withheld during due diligence if evidence doesn’t support compliance.
- Administrative fines and corrective directives under the Act.
- Contract risk if compliance lapses during performance monitoring.
This page provides practical guidance. Always follow the specific tender conditions and consult the current Employment Equity requirements.