Who is a designated employer?

Under the Employment Equity Act 55 of 1998, a designated employer is any employer that employs 50 or more employees, or any employer with fewer than 50 employees but with a total annual turnover at or above the applicable threshold for your industry sector.

Municipalities, organs of state, and employers bound by a collective agreement requiring EE compliance are also designated employers regardless of size.

What must designated employers do?

Conduct an analysis of the workforce profile (EEA12 — workforce profile report). Consult with employees through a representative consultative forum. Prepare and implement an Employment Equity Plan. Report annually to the Department of Employment and Labour. Display a summary of the EEA in the workplace.

When is the annual EE report due?

Designated employers must submit their annual EE report (EEA2) electronically to the Department of Employment and Labour. The submission window typically opens in September and closes on 15 January for employers with fewer than 150 employees, and 1 October for employers with 150 or more employees.

Late submission is a compliance failure and can result in fines.

The 2022 EEA Amendments: what changed

The Employment Equity Amendment Act of 2022 introduced sector-specific numerical targets set by the Minister of Employment and Labour. Employers are now assessed against sector targets, not just their own plans.

Non-compliant employers may be barred from state contracts — a significant commercial consequence beyond the regulatory fines.

Penalties for non-compliance

Administrative fines for non-compliance range from R1.5 million to R2.7 million for a first offence, and up to R5.4 million or 10% of turnover (whichever is greater) for repeat offences. These are not theoretical — the Department conducts compliance audits and inspections.