Our Offerings Include:

• Expert Employment Equity advice via phone and email.
• Client Portal loaded with essential documentation.
• Custom drafting of your Employment Equity plan.
• Guided assistance for annual report submissions and committee meetings.

Designated Employer

A “designated employer” is any employer with 50 or more employees.

Take note: Should a “designated employer” fail to comply with legislation, the fine for the first offence is R1.5 million or 2% of the employer’s annual turnover (whichever is the greatest). For repeat offenders it is R2.7 million or 10% of the employer’s annual turnover (whichever is the greatest).

Are you a “designated employer”?

The definition of “designated employer” has changed with effect from 1 January 2025 after the President of the Republic of South Africa made a proclamation late in 2024 that the Employment Equity Amendment Act No.4 of 2022 (“EEAA“) shall come into operation from the beginning of 2025.

The amendments have the effect of removing the turnover threshold so that only employers with more than 50 employees will be regarded as “designated employers” for the purposes of the Employment Equity Act No.55 of 1998 (“EEA“).

This means that employers with less than 50 employees will not need to comply with the affirmative action provisions in the EEA and will accordingly not need to have an employment equity plan in place and to submit employment equity reports on an annual basis.

What is expected of a “designated employer”?

1. Appoint a Senior Employment Equity Manager
2. Collect information
3. Create Employment Equity awareness
4. Establish an Employment Equity Committee
5. Hold regular (at least quarterly) consultations
6. Draft an analysis (EEA12)
7. Draft an Employment Equity plan (EEA13)
8. Submit Employment Equity reports (EEA2 and EEA4)

Deregistration as a designated employer

Appy for deregistration: If you were previously registered and no longer meet the criteria of a designated employer, you must complete the prescribed documents and apply to the relevant authority (Director-General) at the Department of Employment and Labour for deregistration from the EE register.

Contact us at Labour Quest to assist you with the application for deregistration from the EE register asap!