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THE EMPLOYMENT EQUITY AMENDMENT ACT

What This Means for Companies in SA.


The Department of Employment and Labour and Trade Union Solidarity have signed a major settlement agreement over the country's employment equity laws. The agreement is a major victory for businesses, and it means that they can now focus on hiring and promoting the best qualified people, regardless of their race.


The agreement also states that race may not be used as the sole criterion for employment and promotions, and that no one's employment may be terminated in any way as a result of companies' racial programs. Employers can use a number of justifiable and reasonable grounds for not complying with the employment equity laws, including insufficient recruitment opportunities, insufficient promotion opportunities, and insufficient target individuals from designated groups with the relevant skills, qualifications, and experience.


The government has guaranteed that no penalties will be applied to employers and businesses that have a valid reason not to comply with the employment equity laws.

This is a major step forward for businesses in SA, and it provides much-needed certainty and flexibility. It will allow businesses to focus on what they do best: creating jobs and growing the economy.


Here are some of the implications of the settlement agreement for businesses in SA:

  • Businesses will no longer have to worry about being penalized for not meeting racial targets.

  • Businesses will be able to hire and promote the best qualified people, regardless of their race.

  • Businesses will be able to focus on their core business activities, without having to worry about complying with complex employment equity laws.

The settlement agreement is a major victory for businesses and for fairness in South Africa. It is a sign that the government is finally listening to the concerns of businesses and of the people of South Africa.

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