South Africa
Employment Equity Plans
Impact date: 1 September 2025 The Employment Equity Amendment Act, No. 4 of 2022 (“EEA”) came into effect on 1 January 2025. Thereafter, two sets of Employment Equity (“EE”) Regulations (covering EE reporting forms and other EE templates, as well as the five-year sector EE targets) were published on 15 April 2025 to guide employers and employees in interpreting and implementing the recent EE amendments and sector targets. In accordance with these developments, the EE reporting cycle officially commenced on 1 September 2025.
From 1 September 2025, all designated employers (being those that employ 50 and more employees, as defined in section 1 of the EEA) are required to have prepared and commenced implementation of an EE Plan. This obligation aligns with the reporting cycle introduced by section 9 of the EE Regulations, which also sets out the requirements for such plans, including consultation requirements. EE Plans must include prescribed information, including numerical goals and targets for designated groups (including persons with disabilities), affirmative action measures, timelines, monitoring and evaluation procedures, and strategies to achieve compliance with sectoral targets.
Employer implications/action needed Designated employers must prepare and implement EE Plans that include all elements prescribed in the EEA13 form for the applicable period. These employers are afforded from 1 September 2025 until midnight on 1 October 2025 (manual submissions) or 15 January 2026 (online submissions), to submit their EE reports. EE plans must be developed with reference to the relevant Codes of Good Practice to ensure compliance. Obtaining an Employment Equity Compliance Certificate is now mandatory for businesses seeking to contract with the state.
Employer risk Unless designated employers can demonstrate valid grounds for non-compliance (as prescribed in the legislation), designated employers that fail to comply with the EEA will face fines and financial penalties, the monetary value of which will vary depending on the number and type of contravention.
New Code of Good Practice on Dismissal
Impact date: 4 September 2025 On 4 September 2025, a new Code of Good Practice on Dismissal (“the Code”) replaced Schedule 8 of the Labor Relations Act 66 of 1995 (“the LRA”), creating a unified framework for all dismissal types. The Code introduces important developments in the employment law landscape including:
- Less onerous expectations placed on small businesses
- Simplified, less formal dismissal procedures applicable to managers and senior employees
- An expanded assessment for employees on probation, which includes assessing both performance and suitability (previously just performance) and
- A broader definition of “incapacity” now expanded to include incompatibility within the workplace
Employer implications/action needed Employers must familiarize themselves with the Code and are encouraged to update and adjust their employment policies, practices and procedures in line therewith.
Employer risk While the Code is not binding, and only provides guidelines to employers, employers who do not adjust their employment practices, policies and procedures in line with the Code are at greater risk of non-compliance with the LRA.
Parental leave (case law)
Impact date: 3 October 2025 (interim provisions). Parliament has been afforded 36 months (until October 2028) to enact remedial legislation. The Minister must report to the Constitutional Court six months before the deadline (April 2028) on legislative progress The Constitutional Court in the landmark judgement of Van Wyk and Others v Minister of Employment and Labor ZACC 20 (3 October 2025) confirmed the High Court’s findings that South Africa's parental leave provisions in the Basic Conditions of Employment Act No 75 of 1997“(BCEA”) and the Unemployment Insurance Act No 63 of 2001 (“UIA”) are unconstitutional.
The Constitutional Court decision significantly changed the law surrounding parental leave, at least for the interim period of 36 months commencing on 3 October 2025. The remedial measures imposed by the Court have the following effect: (i) mothers and fathers can now equally share statutory parental leave, being a period of four months and ten days; and (ii) adoptive and commissioning parents are entitled to the same parental leave as biological and other non-adoptive parents. In effect, all parents now share four months and ten days of parental leave collectively if both are employed. Single or sole employed parents enjoy four consecutive months of parental leave.
Employer implications/action needed Employers must update their leave policies and practices to reflect the new interim provisions.
Employer risk Employers who fail to adhere to the new interim provisions, for example, by denying fathers parental leave entitlements, may face claims of unfair discrimination under the EEA.
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