The Supreme Court of Appeal dismissed challenges to new employment equity rules. This allows the Minister of Employment and Labour to set sector targets. Designated employers with 50 or more employees now face tighter rules. Small firms with fewer than 50 employees get relief. These targets stand amid ongoing legal fights. This matters now for HR teams and hiring managers in big businesses.
The Supreme Court of Appeal dismissed an application for leave to appeal. Business groups had challenged the minister’s power to set numerical targets. They argued these amounted to unconstitutional quotas. Earlier court attempts to block implementation also failed. The Constitutional Court refused direct access.
The minister now sets employment equity targets for each sector. These apply to designated employers. Small businesses with under 50 employees are exempt from affirmative action under Chapter 3 of the Employment Equity Act. This holds regardless of turnover. They still follow general anti-discrimination rules.
Previously, employers set their own targets using demographic and industry data. Now, they must align with minister-set ones. This cuts flexibility for big businesses.
Targets are not quotas. Employers do not have to meet them at all costs. They can miss targets due to lack of skills, business restructuring, or workforce changes. Legal views and minister statements support this.
No dismissals are allowed to meet targets. The Labour Relations Act protects against unfair dismissal on discriminatory grounds. As stated, “There is nothing in the Act that empowers an employer to dismiss employees based on race.”
Designated employers must submit annual employment equity reports. They need to track progress across job categories. They must keep employment equity plans and fix barriers to transformation.
Inspectors will likely check progress more closely. Past focus was on documents like plans and reports. Now, non-compliance risks orders or court action.
Firms with <50 employees exempt
HR and hiring managers have less say in targets. They need better workforce planning. Compliance risks rise if progress slows. Justifications help balance this. Small firms only handle anti-discrimination.
Targets come with a five-year timeline. Employers must show continuous progress.
Annual reporting deadlines stay the same. Scrutiny will increase.
A separate constitutional challenge continues. It may reach the Constitutional Court.
Employers should prepare for stronger enforcement.
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