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PROPOSED EMPLOYMENT EQUITY ACT COMMENTS

Companies are objecting to the new proposed EE legislation on several grounds, including:

  • The cost of compliance: The new legislation is expected to be more expensive for companies to comply with than the current legislation.

  • The complexity of the legislation: The new legislation is complex and difficult to understand.

  • The lack of flexibility in the legislation: The new legislation is inflexible and does not allow companies to tailor their compliance measures to their specific circumstances.

  • The lack of evidence to support the need for the new legislation: There is no evidence to support the claim that the new legislation is necessary to address the current levels of inequality in the workplace.

  • The Act has been met with criticism, by arguing that it will have a negative impact on Indian and coloured people. These concerns are based on the following:

  • The Act's focus on race: The Act focuses on race as a means of promoting equality. This has led to concerns that the Act will discriminate against Indian and coloured people, who are already well-represented in the workforce.

  • The Act's quotas: The Act sets out several quotas that companies must meet in terms of the racial composition of their workforce. These quotas have led to concerns that Indian and coloured people will be discriminated against in favour of black people.

  • The Act's penalties: The Act sets out several penalties for companies that do not comply with its requirements. These penalties have led to concerns that companies will be reluctant to hire Indian and coloured people, for fear of being penalized.

Here are some of the specific ways in which Indian and coloured people could / may be negatively affected by the proposed EE Act:

  • They could be less likely to be hired for jobs, as companies may be reluctant to hire them for fear of not meeting the racial quotas set out in the Act.

  • They could be paid less than black employees, as companies may use the Act as a justification for paying black employees more to meet the racial quotas.

  • They could be promoted less often than black employees, as companies may use the Act as a justification for promoting black employees more to meet the racial quotas.

The proposed EE Act is a complex piece of legislation with the potential to have a significant impact on the South African workforce. It is important to carefully consider the potential impact of the Act on Indian and coloured people before it is finalized.


Companies are also concerned that the new legislation will stifle economic growth and job creation. They argue that the new legislation will make it more difficult for companies to hire and retain the best talent, and that it will discourage investment in South Africa.


The Department of Employment and Labour has defended the new legislation, arguing that it is necessary to address the current levels of inequality in the workplace. The Department has also argued that the new legislation is not too complex or too expensive to comply with.

The Department has also said that the new legislation will not stifle economic growth or job creation. The Department has argued that the new legislation will help to create jobs by promoting the growth of black-owned businesses.

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