The Department of Employment and Labour has announced that all designated employers must submit their 2024 employment equity reports. They must complete reports on EEA2 and EEA4.

One can go on to the online portal of the Department of Employment and Labour to ensure that the forms are properly completed. It must be remembered that a designated employer is an employer with 50 or more employees or an employer with fewer than 50 employees but whose annual turnover meets or exceeds the thresholds listed in Schedule 4 of the Employment Equity Act.

Some employers choose to volunteer and become designated employers. They must likewise submit their forms as soon as possible. The period for the 2024 Employment Equity Reporting is from this month to January 15, 2025.

It is vital to ensure that every business first checks whether they are a designated employer and if they are, they must comply. There are enormous penalties for non-compliance with the requirements.

For instance, first-time offenders can be fined up to R1.5 million or 2% of the employers’ annual turnover. If it is found to be a repeat offence, then fines can escalate to a maximum of R2.7m or 10% of the employers’ annual turnover. One should try to avoid the penalties and ensure compliance with employment equity legislation.

All employers are encouraged to familiarise themselves with their responsibilities and submit their reports within the stipulated period. The department conducts training sessions. It is recommended that individual businesses contact the department if they are unsure about the legislation.

The Labour Ministry, during the sixth administration of Parliament, under minister of employment and labour Thulas Nxesi, proposed amendments to the employment equity legislation and the regulations. Nxesi did not make it back into Parliament as he was too low down on the ANC list. But his proposed amendments and proposed regulations live on.

The amendments are pernicious and set targets for various industries in the employment of certain race-based categories. The differentiation between black, coloured and white remains strongly reflected in the employment equity legislation.

Despite cogent arguments and proof that race-based legislation is counter-productive and would destroy industry, Nxesi plodded on and managed to have the legislation pushed through Parliament and eventually signed off by the president.

Despite signing, the legislation has not been gazetted and is not active.

Various role-players in civil society and the then-opposition in Parliament instructed lawyers to challenge the legitimacy and validity of the amendments to the legislation. The cases have not been heard yet but it is my understanding that pleadings in the courts have been tabled.

What is rather curious is that the regulations state that any business that has fewer than 50 employees, regardless of turnover, is exempt from the regulations and automatically qualify for business as if they were designated employers.

The regulation automatically gives the business the benefits of qualification. This is fortunate in that it would give a helping hand to small businesses in South Africa.

The government, through the exemption in the regulations, recognises that employment equity legislation is neither conducive to business in South Africa nor helping job creation.

The recognition of the destructive nature of employment equity needs to be worked upon and needs to be reflected across the board in our business community.

The regulation of exemption gives the business community hope that the government is starting to realise that affirmative action or race-based legislation is not good in the long term.

It is time the government stopped interfering in job creation.

* Michael Bagraim is a veteran labour lawyer.

** The views expressed here are not necessarily those of Independent Media.

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