UNDERSTANDING REGULATION 910: SOUTH AFRICA’S NEW EMPLOYMENT EQUITY CHALLENGE
- Compliance Hub Consulting
- Oct 14
- 2 min read
Updated: Oct 16
South Africa continues to refine its legal framework around employment equity, with Regulation 910 — introduced under the Employment Equity Act and effective from September 1, 2025 — marking a significant development. This regulation has generated considerable debate within the legal and business communities due to its stringent requirements and potential operational impacts.
What is Regulation 910?
Regulation 910 mandates that companies with 50 or more employees actively manage racial representation within their workforce, ensuring it aligns proportionally with the demographic composition of the relevant population groups. The regulation specifically seeks to prevent “racial over-representation” within salary bands, meaning that no racial group should be over-represented beyond their proportional population targets in specific employment categories.
This regulation introduces a novel approach to employment equity by emphasizing proactive management of racial composition, potentially restricting the promotion and hiring of employees from specific racial groups to avoid exceeding set thresholds. Such measures aim to redress past inequalities but have also sparked concerns regarding fairness and operational flexibility.
Practical Impact on Businesses
Regulation 910 has led to notable operational challenges:
Restricted Promotions and Hires: Companies may be legally permitted to refuse promotions or new hiring for certain racial groups if doing so would result in exceeding the prescribed over-representation thresholds.
Vacant Positions: Some organizations report leaving vacancies unfilled rather than hiring from racial groups that would violate the regulation.
Legal Penalties: Non-compliance can attract severe penalties, including fines of up to 10% of a company's annual revenue, with repeated offenses escalating enforcement actions.
Broader Legal and Economic Concerns
Several legal and civil society organizations have raised concerns that Regulation 910:
Reinforces Racial Divisions: Critics argue that rigid racial quotas may perpetuate divisions rather than promote equality, echoing concerns raised in legal critiques and media commentary.
Legal Challenges: Several court cases contest the constitutionality of the regulation, highlighting conflicts with fundamental rights to fair employment practices and freedom of association. Ongoing legal proceedings are examining whether the regulation aligns with South Africa’s Constitution.
Enforcement and Compliance
The regulation grants extensive powers to labor inspectors, including warrantless workplace searches and investigations, increasing compliance obligations for employers. Businesses are advised to:
Ensure Accurate Record-Keeping: Maintain detailed employment equity documentation.
Engage with Legal and HR Experts: Develop compliant yet realistic employment strategies.
Monitor Legal Developments: Stay informed on court rulings and legal challenges that may influence future enforcement.
Regulation 910 represents a significant shift in South Africa’s employment equity landscape, emphasizing proactive racial management within organizations. While intended to promote fairness, its stringent thresholds and enforcement mechanisms pose practical and legal challenges.
Businesses should approach compliance strategically, balancing legal obligations with operational realities. Continuous legal advice and proactive record-keeping will be essential as ongoing litigation and regulatory updates shape the future enforcement environment.
Need guidance on how Regulation 910 affects your business?
Reach out to the Compliance Hub team for tailored advice on compliance strategy, risk mitigation, and documentation readiness.
