2024-02-15

A breakdown of the new Employment Equity Sectoral Targets

The Minister of Employment and Labour, empowered to identify and set Employment Equity numerical targets for each national economic sector, has republished the draft regulations which includes the sectoral targets in February this year.

The changes from the first draft regulations and sectoral targets issued last year are:
- The distinction between provincial and national targets has been removed.
- The targets reflect one target for each economic sector differentiated only on the basis of gender.
- The distinction between designated racial groups (African, Coloured, and Indian) has been removed.

There is no change to:
- The focus on top and senior management, professionally qualified, skilled levels and people with disabilities.
- There are no targets for the semi-skilled and unskilled levels, but when developing the individual company Employment Equity Plans the Economically Active Populations (EAP) will need to be taken into account for semi and unskilled employees.

The Department of Employment and Labour took the following factors into account to determine the 5-year targets:
- National, provincial and regional EAP in each sector,
- Workforce profiles based on the 2022 Employment Equity reports submitted by employers.
- Unique sector dynamics such as skills availability, economic and market forces and ownership.
- BBBEE Sector Codes and Charters

The sectoral targets
- The sectoral targets are a 5-year target.
- Designated employers must still set internal annual numerical goals.
- The annual numerical goals will be assessed with respect to meeting the 5-year sectoral targets.
- Designated employers must use their workforce profiles and the applicable EAP into account when planning their annual numerical goals. The annual numerical goals must replace the African, Coloured and Indian percentage of the EAP.
- If designated employees already exceed the EAP, then no targets are set for them in the particular level.
- Once the target has been reached the employer may not regress, and must then concentrate on achieving the percentage split into African, Coloured and Indian EAP.
- The targets are minimum targets.
- Follow the link for the tables of the sectoral targets:
https://www.gov.za/sites/default/files/gcis_document/202402/50058rg11662gon4295.pdf

Provincial vs National EAP statistics
- Designated employers operating in one province use the Provincial EAP.
- Those operating in more than one province may choose the EAP of the province in which the majority of employees perform their functions.
- Where a designated employer operates in more than one sector, it should choose the economic sector with the majority of employees.

Affirmative Actions
- The EAP is only one of the factors to take into account when developing affirmative actions.
- No absolute barrier can be placed on any employment practises for any group, regardless of race, gender and disability.
- No absolute barrier to any person may be part of any employment practise.
- The following must be considered for affirmative action compliance:
- Inherent requirements of the job.
- Pool of suitably qualified persons
- Qualifications, skills, experience, and the capacity to acquire with a reasonable timeframe the ability to do the job.
- The rate of turnover or natural attrition within the workplace.
- Recruitment and promotion trends in the workplace.
Penalties for affirmative action noncompliance
- No employer will incur penalties or any disadvantage if there are justifiable/reasonable grounds for non-compliance.
- An employee’s employment may not be affected as a consequence of affirmative action.

The list of justifiable/reasonable grounds for non-compliance with the sectoral targets are, but not limited to:
- Insufficient recruitment opportunities;
- Insufficient promotion opportunities;
- Insufficient available individuals from the designated groups with the relevant qualifications, skills and experience;
- CCMA awards/court orders;
- Transfer of business;
- Mergers/acquisitions; and
- Impact on business economic circumstances.

The sectors identified for sectoral targets are:
- Accommodation and Food Service Activities
- Administrative and Support Activities
- Agriculture, Forestry & Fishing
- Arts, Entertainment and Recreation
- Construction
- Education
- Electricity, Gas Steam and Air Conditioning Supply
- Financial and Insurance Activities
- Human Health and Social Work Activities
- Information and Communication
- Manufacturing
- Mining and Quarrying
- Professional, Scientific and Technical Activities
- Public Administration and Defence, Compulsory Social Security
- Real Estate Activities
- Transportation and Storage
- Water Supply, Sewerage, Waste Management and Remediation Activities
- Wholesale and Retail Trade, Repair of Motor Vehicles and Motorcycles

The deadline for comment is 02 May 2024.