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    1Oct, 2025
    Employment Equity for Non-Designated Employers

    We know that with the recent changes to the Employment Equity Act, many businesses with fewer than 50 employees are wondering where they stand. Some believe they are completely exempt, but that is not quite the case.

    Under Chapter II of the EE Act, non designated employers still have important responsibilities:

    • You need to formally declare your status as a non designated employer with the Department of Employment and Labour (DoEL).
    • You must be able to show that your workplace complies with the Act by promoting equal opportunity and eliminating unfair discrimination.
    • If you plan on working with government, whether through contracts, tenders or licenses, you will need to apply for an EE Certificate of Compliance.

    It is also important to note that when applying for an EE Certificate, companies must show that firstly, they are fully compliant with the National Minimum Wage Act. Failure to meet minimum wage requirements can prevent you from obtaining the certificate, which means losing out on government opportunities. Secondly, the non-designated employer must not have any award  against them by the CCMA for unfair discrimination.

    The good news is that this does not need to feel overwhelming. At EconoBEE, we are here to guide you through the process. We will:

    • Set up and manage your declaration on the DoEL EE Online Portal.
    • Help you prepare the necessary documents to confirm compliance with Chapter II.
    • Apply for and secure your EE Certificate of Compliance where it is required.
    • Confirm that your company meets minimum wage compliance so that your certificate application is not at risk.

    Whether you fall into the designated or non designated category, you still need to demonstrate compliance. We will make sure you do so smoothly, on time and without unnecessary stress.

    Let us simplify your compliance journey together. Contact us today to confirm your status and take the next steps with confidence.

    3Sep, 2025
    Equity Equivalents in ICT: A Step Forward or a Potential Shortcut?

    Spring Newsletter | Opinion Piece

    Spring is a season of renewal and growth, and this year it comes with fresh policy developments that could reshape transformation in South Africa’s ICT sector. The draft policy introducing Equity Equivalent Investment Programmes (EEIPs) in place of the strict 30% BEE ownership requirement is a bold and pragmatic move. It reflects government’s willingness to adapt transformation policies to modern realities, especially in industries where international investment and global participation are critical.

    So, what exactly are EEIPs? Instead of transferring equity to meet BEE targets, companies can commit to programmes that deliver equivalent value to transformation. This could include investing in skills development for young South Africans, supporting black-owned enterprises, expanding digital access in underserved areas, or funding socio-economic initiatives. In practice, EEIPs allow companies to contribute to empowerment without giving up direct ownership.

    There are clear advantages. EEIPs could attract global players into South Africa’s ICT sector, encourage innovation, and create opportunities for communities that might otherwise be overlooked. At the same time, they keep empowerment firmly on the agenda by redirecting resources into measurable initiatives.

    Yet, there are also valid concerns. Some argue that nothing can replace actual black ownership, and that EEIPs risk watering down the very spirit of transformation. The challenge will lie in ensuring accountability, transparency, and genuine impact, rather than allowing EEIPs to become a box-ticking exercise.

    The next step is public consultation. Business leaders, policymakers, and civil society must contribute their voices to shape this framework in a way that balances investment with meaningful transformation.

    We believe that this policy shift deserves close attention. If designed well, it has the potential to redefine how empowerment is achieved in ICT and possibly serve as a model for other sectors in the future.

    🌸 Spring Reminder: The Employment Equity submission period is now open, running from the 1st of September to until the 15th of January 2026. Just as spring invites us to prepare for growth, this is the time to ensure your EE submissions are completed on time and with precision. Many companies delay until the last moment, leading to unnecessary stress. As Employment Equity experts, we are here to assist you with your submissions during this period, contact our consultants to get started.

    12Jun, 2025
    Leaving No One in the Cold❄️

    Leaving No One in the Cold❄️ – Winter Compliance Update
    June 2025 | EconoBEE

     As we settle into the chill of winter, it’s a good time to reflect on what it means to ensure that no one gets left out—especially when it comes to transformation and compliance. This edition of our newsletter brings you the latest on Employment Equity developments, the B-BBEE landscape and important submission deadlines that you won’t want to miss.

     

     📍EEA12 Analysis: Laying the Groundwork for Your EE Compliance

    Employment Equity compliance begins with understanding your workforce’s current makeup. That’s where the EEA12 comes in. This form requires designated employers to conduct an analysis of their staff across all occupational levels.

    The goal is to identify under-representation or over-representation of population groups, using the national Economically Active Population (EAP) data and your sector-specific targets as benchmarks.

    Once that analysis is complete, employers must use the findings to develop a forward-looking Employment Equity Plan (EEA13). This plan can span up to five years, which aligns with the deadline to meet sector targets introduced in the revised Employment Equity Act.

    Here’s how the timeline unfolds:

    • Now to 1 September 2025: We can help you perform your EEA12 analysis and start preparing your EE Plan.
    • 1 September 2025: The Department of Labour portal opens for submitting your EEA2 (progress report) and EEA4 (income differentials).
    • In these submissions, you’ll be required to set your numerical targets for 2026.
    • September 2026: The Department will review whether the targets you submitted have been met.

    If you haven’t started with your EEA12 analysis yet, now is the right time. Our team can support you every step of the way, from analysing your workforce to submitting your reports and plans through the online portal.

     

     📌 New Direction for the ICT Sector: EEIPs Now in Focus

     Minister Malatsi recently issued a policy directive focused on Employment Equity Instruments and Programmes (EEIPs) within the ICT sector. This is a clear move toward holding digital and tech companies more accountable for transformation.

     Whether you’re in software development, telecoms, or digital services, this policy matters. It will influence how EE and BEE performance is evaluated and enforced in your sector.

     If your business operates in the ICT space, now is the time to review your equity plans and make sure they align with the new expectations. Our team is already helping companies in your industry navigate this change.

      

    📍What’s Changed in the Employment Equity Act?

     There have been key updates to the Employment Equity Act, and they directly affect many of our clients. Here’s a quick summary of what’s changed:

    • The term “designated employer” now applies to businesses with 50 or more employees, regardless of turnover
    • Sector-specific numerical targets have been introduced
    • A valid EE Compliance Certificate is now required if your business wants to work with the state

    These changes are not just about ticking boxes—they’re about ensuring real progress. If you haven’t reviewed your Employment Equity Plan lately, now is the perfect time.

      

    📌 Let’s Keep Transformation on the Agenda

     Compliance can feel overwhelming, especially with constant changes to legislation and sector requirements. But you’re not alone. Whether you need help with B-BBEE strategy, EEA12 submissions, or understanding your obligations as a designated employer, EconoBEE is here to help.

     Let’s work together to make sure no one gets left in the cold this winter, especially when it comes to equity and inclusion.

    8May, 2025
    Pivotal Shifts in the Transformation Landscape

    Greetings to all our loyal readers, and welcome to our latest edition of the EconoBEE newsletter.

    As with most months in 2025, April brought with it a whirlwind of regulatory developments within the B-BBEE and transformation space. Several updates and draft frameworks have sparked renewed discussion around the future of economic inclusion in South Africa. This month, we’ve spotlighted the most impactful developments beginning with the eagerly anticipated Transformation Fund Concept released by the Department of Trade, Industry and Competition (the DTIC), followed by key insights on the Employment Equity Act repeal, which continues to create waves among designated employers.

     

    Transformation Fund Concept – A Game-Changer for Real Economic Inclusion

    In mid-April, the DTIC released a draft concept document proposing the establishment of a Transformation Fund – a bold R100 billion initiative to be implemented over five years. The aim? To support majority black-owned businesses and SMMEs, with a focus on inclusive growth, township and rural upliftment, and the empowerment of historically disadvantaged South Africans, particularly black women, youth, and people with disabilities.

    The Transformation Fund differs significantly from traditional ESD approaches. It introduces a mix of grant, equity, and debt funding, alongside non-financial interventions such as access to markets, technical support, mentorship, and accreditation for high-skill industries. The fund will be governed through a Special Purpose Vehicle (SPV) with strong public-private oversight, and contributors can expect immediate B-BBEE recognition for their funding input, as well as tax deductibility under section 18A.

    This draft concept is open for public commentary until 28 May 2025. (Has been extended) Stakeholders are encouraged to share feedback at: transformationfund@thedtic.gov.za.

     

    Employment Equity Act Repeal: Where Do Employers Stand Now?

    In a parallel development, the government has moved forward with the partial repeal of sections of the Employment Equity Act, particularly those related to Section 53 — the controversial procurement compliance clause requiring a certificate of compliance for companies seeking to do business with the state.

    This repeal, which comes after significant lobbying from the private sector, removes the blanket requirement for a compliance certificate, though designated employers are still expected to submit EE Reports and implement Employment Equity Plans. The rationale behind this adjustment, according to the Department of Employment and Labour, is to reduce red tape while still holding employers accountable for transformation progress.

    Designated employers must take note: compliance obligations remain. Reporting deadlines, demographic targets, and transformation strategies are still part of the regulatory framework. What has changed is the mechanism for state procurement eligibility — shifting from a compliance certificate model to more targeted procurement regulations.

    This development is both a relief and a warning. While the administrative burden is reduced, the spotlight on equitable workplace practices is growing and public scrutiny is intensifying.

     

    A Call for Purposeful Action

    These updates serve as a timely reminder that transformation in South Africa is a living, evolving process; not a checklist. Whether it’s through structured funds like the Transformation Fund or internal practices aligned to Employment Equity, businesses must remain intentional and responsive.

    EconoBEE continues to support our clients in staying ahead of these shifts. If you’re uncertain about how these changes affect your business or would like to align your strategy with the new transformation roadmap — reach out to our team. Let’s build compliance with impact.

    27Sep, 2024
    Join Us for a Complementary and Insightful Employment Equity Webinar!

    EconoBEE’s Employment Equity Webinar is an excellent opportunity for companies to gain insight into complying with South Africa’s Employment Equity Act (EEA)

    What to Expect:

    • Expert insights on how Employment Equity ties into B-BBEE compliance
    • Best practices for implementing your Employment Equity Plan.
    • The opportunity to ask questions.

     Why Attend: This webinar is designed to help you navigate the complexities of Employment Equity and ensure your business is prepared to meet the current regulatory and administrative necessities  

     

    📅 Date: 01 October 2024
    ⏰ Start Time: 9am
    💻 Platform: Webinar on MS Teams

    Click here to attend this free Webinar!

     Also in News:

    The South African Minister of Trade, Industry and Competition has approved the Legal Sector Code!

    The South African Minister of Trade, Industry and Competition has approved the Legal Sector Code, aimed at advancing Broad-Based Black Economic Empowerment (B-BBEE) within the legal profession. Click here to read more

    5Sep, 2024
    Are You Ready for the Employment Equity Reporting Season?

    Spring is upon us! As the season of renewal and growth begins, it’s the perfect time for businesses to refresh and align their strategies with South Africa’s transformative goals. Just as nature blossoms and adapts, now is the moment for your organization to spring into action and ensure compliance with the Employment Equity (EE) Act.

    Why is Employment Equity Reporting Important?
    Well, the upcoming Employment Equity reporting deadline is a reminder to all designated employers to prioritize EE compliance, especially now that there has been some confusion recently about which version of the Employment Equity Act is currently in effect. Our sources within the Labour Department have clarified that the Employment Equity Amendment Act No. 47 of 2013 is indeed the current legislation in force. According to this Act, “designated employers” are defined as those with 50 or more employees or those with fewer than 50 employees who meet the turnover threshold specified in Schedule 4 of the Act.

    Additionally, employers with fewer than 50 employees may also be considered designated employers if they meet the turnover thresholds outlined in Schedule 4 of the Act. Additionally, employers who do not meet these criteria can still choose to voluntarily do their EE reporting as stipulated in Section 14 of the EE Act. Beyond avoiding fines that can reach up to R1.5 million or 2% of annual turnover (rising to R2.7 million or 10% for repeat violations), embracing Employment Equity is about fostering a workplace that is as diverse and inclusive as our vibrant country. It’s about reflecting the rich tapestry of South Africa in your business and taking steps toward a more equitable economy.

    B-BBEE and Spring Growth
    Just like the new growth we see in spring, Broad-Based Black Economic Empowerment (B-BBEE) and Employment Equity present opportunities for growth, innovation, and a thriving business environment. By aligning your business with these principles, you not only comply with regulations but also position your company as a leader in transformation and inclusivity.

    Let Us Help You Bloom!
    Our experts are here to help you tackle the challenges of EE and B-BBEE compliance. Whether it’s EE planning plan, completing your reports, or increasing your B-BBEE score, we’ve got you covered. Don’t miss this chance to renew and refresh your commitment to transformation—just in time for spring!

    Don’t Miss the Deadline!
    Reach out to us today on 011 483 1190 or email us . Let’s work together to grow a more inclusive and prosperous future.

    Best Regards,
    The EconoBEE Team
    www.econobee.co.za

    5Mar, 2024
    March Musings: 3 Months into 2024!

    We have only just begun the third month of 2024 and yet what a busy year it has been; from increases to renewals and a draft thrown in for good measure 😉 – here is a summarised look at what has transpired thus far:

    • EE News: Employment and Labour Minister TW Nxesi introduced new draft regulations in Feb 2024, addressing sectoral numerical targets (Click here to see our newsletter on this topic) Comments are due by the second of May 2024.
    • Minimum Wage Increase: Effective from the first of March, the National Minimum Wage (NMW) for each ordinary hour worked will increase to R27.58. There are some exceptions, so please click here for more information on this.
    • Renewal to the Section 12H Tax Incentive: The recent Budget Speech confirmed that the Section 12(H) Learnership Tax Incentive has once again been extended, this time by three years, until the thirty first of March 2027. Want this benefit for your company? Then call us now on 011 483 1190 and speak to us about our Learnership offerings that provide a range of benefits, are aligned to skills development and include various B-BBEE advantages for companies!

    What has the next few months got in store for us?

    Well, it’s anyone’s guess 😉 Seriously though, we have heard rumblings about QCTO and Transport Sector Codes and so both will be discussed in more detail in future newsletters:

    • QCTO: According to recent reports, the last date of registration for all ‘historical’ (read not-QCTO) qualifications is the thirtieth of June 2023, with a phase-out period of one year for learners to still enrol up to and including the thirtieth of June 2024. Providers offering learnerships, and other skills development programmes, need to ensure accreditation so that they can move over to the QCTO framework ASAP. This is especially important for companies that rely on both of above for B-BBEE level points.
    • Transport sector codes: Expected to be gazetted around March 2024, the Transport Sector Charter (TSC) is set for some big amendments. And, unlike previous other sector and other Code amendments, the TSC has not provided a “grace period” for transitioning. This is very concerning as this may result in some companies obtaining unfavourable B-BBEE status due to the lack of additional planning time.

    As the industry awaits clarity on above, one thing is clear: Adaptation will be crucial for success in the evolving regulatory landscape. Stay tuned for updates as we decipher the implications together.

    Last but not least . . . we want to end off this newsletter discussing our new look at Training and Workshops!

    We are ramping up our webinar offerings and workshops, and will be providing more information on this soon.

    In the meantime, book your space now for our not-to-be-missed Skills Development submissions workshops in March and early April!

    6Jun, 2023
    Employment Equity: More on Sectoral Targets

    We recently announced the changes that have been brought about by the Employment Equity Amendment Act 4 of 2022 in April 2023.

    The proposed Sectoral targets have since been announced for public comment. This means that once finalized designated employers will need to amend their Employment Equity plans to be aligned with the new Sectoral targets.

    There have been several criticisms leveled at the new Sectoral targets, one of which are that it may results in quotas and is not reflective of the current state of representivity in certain industries.

    It is important to note that these sectoral targets are likely to be fine tuned after the public comment, but it is important for designated employer to look at how their employment equity planning will be impacted by the sector targets.

    We will continue to keep you informed about the effective date of these amendments once it is proclaimed by the President. Should you require more detailed explanations and information about these key amendments, please contact our Business Development Team on 011 483 1190