Employment Equity Compliance Rates Drop to 9% Amid Legislative Reforms

Posted 20 May 2026 Written by Acts Online
Category Labour & Employment

Brought to you by SAnews: The Department of Employment and Labour has announced that only 9% of employers inspected during the 2025/26 financial year complied with the Employment Equity Act, No. 55 of 1998, prompting an intensification of workplace inspections and legislative reforms.

During the 2025/26 financial year, the Department targeted 3,324 Employment Equity inspections, including Director-General Reviews, re-assessments, and monitoring interventions. Out of 1,948 employers reviewed and served with recommendations, only 181 were found compliant, while 1,767 non-compliant employers were issued with recommendations for corrective action. Despite these low compliance rates, more than 14,000 designated employers submitted Employment Equity reports following the promulgation of the Employment Equity Amendment Act, No. 4 of 2022 and the introduction of sectoral numerical targets. Additionally, over 11,000 non-designated employers applied for compliance certificates.

Proposed Legislative Reforms

The Labour Laws Amendment Bill, which was approved by Cabinet and published in the Government Gazette on 27 February 2026, proposes critical reforms to several key statutes, including:

  • The Labour Relations Act, No. 66 of 1995;
  • The Basic Conditions of Employment Act, No. 75 of 1997;
  • The National Minimum Wage Act, No. 9 of 2018; and
  • The Employment Equity Act, No. 55 of 1998.

These amendments aim to strengthen worker protection, improve dispute resolution, reduce compliance burdens for small businesses, and align national legislation with recent Constitutional Court and Labour Court judgments. The public comment period generated 216 submissions, which are currently under review by the Department.

Enforcement and Inspectorate Capacity

To enforce compliance, the government is expanding its inspectorate capacity. Following the announcement in the 2026 State of the Nation Address, the Department has set aside R5 billion over the Medium-Term Expenditure Framework (MTEF) period to recruit 10,000 permanent labour inspectors. This permanent recruitment replaces the latter phase of the “Project 20 000” inspector intern program, which has already seen approximately 3,800 interns enter training and deployment as of April 2026, with further cohorts scheduled for May and June 2026.

What this means for you, your business, or your clients

  • For yourself: Keep abreast of the upcoming changes in the Labour Laws Amendment Bill to advise on shifting compliance standards across the LRA, BCEA, and EEA.
  • For your business: Review your internal employment equity policies, reporting structures, and workplace practices immediately to ensure alignment with sectoral numerical targets and avoid penalties during upcoming inspections.
  • For your clients: Advise designated employers to prepare for rigorous Director-General Reviews and inspections by ensuring their Employment Equity reports and transformation plans are fully compliant with the Employment Equity Amendment Act, No. 4 of 2022.

Originally published at https://www.sanews.gov.za/south-africa/only-9-employers-comply-employment-equity-laws-says-minister-meth

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