Following the implementation of the Employment Equity (EE) Act, No. 4 of 2022, Minister of Employment and Labour Nomakhosazana Meth said that small employers can now focus on job creation.
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Following the implementation of the Employment Equity (EE) Act, No. 4 of 2022, Minister of Employment and Labour Nomakhosazana Meth said that small employers can now focus on job creation.
The EE Act came into effect on January 1, 2024, after President Cyril Ramaphosa signed the proclamation notice giving effect to the start date of the implementation of the EE Act.
According to Meth, the new EE Act is aimed at reducing the regulatory burden for small employers to allow them to focus on job creation.
The Minister of Employment and Labour is positive that the regulatory flexibility will give small business the opportunity to grow their businesses and create jobs.
"In the next 2025 EE reporting cycle starting on 1 September 2025, employers will have to use the published EE amended legislation to submit their EE reports," Meth said.
"We are excited b the latest developments that small businesses will no longer have to go around spending their money on consultancy fees to source legal assistance to develop EE plans and submission of EE reports. We hope that the new amendments to Employment Equity will impact positively on job creation and the unemployment rate."
Here is a look at the main objectives the Employment Equity Amendments:
- to reduce the regulatory burden for small employers (employers employing between one and 49 employees) will be excluded from complying with the provisions of Chapter III of the EE Act
- to empower the Minister to regulate specific numerical targets
- to promulgate Section 53
- to strengthen compliance including the issuing of EE compliance certificates.
The department said that in terms of the notice gazetted on November 28, 2024 small business that employment less than 50 employees are no longer bound to comply with Chapter III of the Employment Equity Act 1998 for example in relation to their submission of their EE reports starting from 2025 EE reporting period.
In terms of the 2024 EE report submission period which closes on January 15, 2025 employers must use the current legislation (EEA)to comply with the reporting requirement as per section 21 of the EEA.
The latest EE amendments draw their genesis in 2019 when the department as well as Commission for Employment Equity (CEE) started sector engagements with the intention of the setting of sector EE targets to give workplace transformation a boost.
IOL Business