Stricter BEE quotas for South African businesses just 45 days away
As such, the Department of Employment and Labour has been hosting workshops all around the country to get employers up to speed. Moreover, the department has warned that any South African businesses that don't comply with the new BEE quotas will face censure. The IMF and World Bank has called Employment Equity 'well-meaning but flawed' in a South African context. Image: File
The Labour Department's new BEE quotas come into effect in just 45 days' time, on Monday 1 September 2025. Amendments to the Employment Equity Act require percentage-based quotas on businesses across 18 different sectors. And employers have five years (2030) to meet said targets.
Each businesses' workforce should be made up certain percentages of 'designated groups,' reports BusinessTech . These groups are made up of: Black African, coloured, Indian, women and the disabled. Amendments to the Employment Equity Act come into effect in 45 days' time. Image: File
According to the Labour Department's 2030 BEE quotas, all businesses employing more than 50 people are considered 'designated employers' under the new laws. As such, these businesses must have Employment Equity Plans that outline their five-year strategy.
Businesses with less than 50 employees are exempt from these stricter BEE quotas. However, several business groups are not happy and have banded together to challenge the stricter BEE quotas in court. They are unhappy with the following issues: Government failed to consult with public and private stakeholders.
New sectoral targets differ greatly from previous versions.
Quotas within the new BEE quotas are arbitrary and irrational
No economic impact studies were conducted to determine the effect of these laws.
The stricter BEE quotas laws are unconstitutional in that they go against the ideals of non-racialism, equality and justice.
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