South Africa: Are local businesses ready for the new Employment Equity Regulations?
These new regulations require designated employers to meet specific equity targets across all occupational levels by 2030, with strict penalties for non-compliance.
The regulations, which introduce clear boundaries to monitor progress in achieving equitable representation of designated persons, are expected to have a significant impact on South African businesses.
However, many industry stakeholders have raised concerns that the targets are unattainable, citing the current economic climate and South Africa's low-growth economy as barriers to their achievement.
A critical moment for transformation agendas
For the first time, designated employers will be required to comply with mandatory employment equity targets. These targets are intended to ensure that the workforce is more reflective of the country's economically active population, yet many businesses view them as overly ambitious.
Despite several rounds of consultation, the Department has remained firm on the targets, with little modification since their initial proposal.
Jonathan Goldberg, chairman of Global Business Solutions, stated, 'The new regulations create both significant challenges and opportunities for South African businesses. While many will find these targets difficult to achieve, those who strategically align their practices with these requirements can emerge as leaders in transformation.'
The penalties for non-compliance are severe, with fines of up to R1.5m or 2% of annual turnover, adding to the pressure on businesses already grappling with multiple regulatory demands.
Over 200 employers have already been referred to the Labour Court for failing to comply with existing regulations.
Strategic response and the need for innovation
Despite the concerns surrounding the achievability of the targets, the government maintains that these measures are necessary for achieving a more inclusive workforce. However, many employers question whether the balance between ambitious goals and practical implementation has been struck.
'The regulations present a complex challenge for many sectors, especially those that are already facing economic headwinds,' said Thembi Chagonda, joint-CEO of Global Business Solutions and an Employment Equity Commissioner.
'However, those businesses that embrace these changes head-on and innovate their approach to compliance will find themselves better positioned for the future.'
John Botha, joint-CEO of Global Business Solutions, added, "The time for preparation is now. Businesses that develop innovative compliance strategies will not only mitigate the risk of penalties but may also gain a competitive advantage as the regulatory landscape evolves.
All rights reserved. © 2022. Bizcommunity.com Provided by SyndiGate Media Inc. (Syndigate.info).
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Khaleej Times
3 days ago
- Khaleej Times
Fed expected to stick with regular-sized rate cut after hot inflation data
A jump in U.S. wholesale prices last month looks to have all but erased the possibility that the Federal Reserve will deliver a jumbo-sized half-percentage-point interest rate cut in September, though expectations for a quarter-percentage-point move next month, followed by another in October, remain intact. U.S. producer prices rose 0.9% in July amid a surge in the costs of goods but also of services like machinery and equipment wholesaling, the Labor Department's Bureau of Labor Statistics said on Thursday. The increase, which far exceeded economists' expectations, may get passed on to consumers, who so far have not experienced a strong overall increase in prices even as the Trump administration has ratcheted up import tariffs. "We expect a stronger pass-through of levies into consumer prices in coming months, with inflation likely to climb modestly over the second half of 2025," said Ben Ayers, senior economist at Nationwide. The rise in services inflation will be particularly worrisome to Fed policymakers like Chicago Fed President Austan Goolsbee, who said on Wednesday he's on alert for signs that inflation is seeping into prices beyond those for goods affected directly by tariffs. An increase in services inflation, also evident in the consumer price data released on Tuesday, suggests inflation could become a more persistent problem, he said. U.S. Treasury Secretary Scott Bessent, who is leading the search for a replacement for Fed Chair Jerome Powell, has been pushing for a bigger rate cut next month, citing tame inflation, though on Thursday he said the U.S. central bank could start with a quarter-percentage-point move. Before the data, traders put about a 3% probability on the idea of a half-percentage-point rate cut, with most bets firmly on a quarter-percentage-point reduction. After the data, traders erased bets on a 50-basis-point move. San Francisco Fed President Mary Daly, who signaled earlier this week that she is increasingly open to the idea of a rate cut given the softening in the labor market, told the Wall Street Journal in a story published on Thursday that a 50-basis-point rate cut would signal an urgency about the job market that she does not feel. "It has been acting as a bucket of really cool water poured on the heads of those calling for 50 basis points in September," Slawomir Soroczynski, head of fixed income at Crown Agents Investment Management, said after the data. Rate-sensitive two-year Treasury yields jumped more than five basis points after the data and were last at 3.722%, over three basis points higher than on Wednesday. Benchmark 10-year yields were up about two basis points on the day, at 4.264%. "The large spike in the Producer Price Index this morning shows inflation is coursing through the economy, even if it hasn't been felt by consumers yet," said Chris Zaccarelli, chief investment officer for Northlight Asset Management. "Given how benign the CPI (consumer price index) numbers were on Tuesday, this is a most unwelcome surprise to the upside and is likely to unwind some of the optimism of a 'guaranteed' rate cut next month," he said in a note. The Fed will get another round of inflation data and a fresh jobs report before its September 16-17 policy meeting.
Arabian Business
3 days ago
- Arabian Business
The UAE is leading the fight for a cleaner gold market
When it comes to protecting the integrity of the global financial system, few nations pack a punch quite like the UAE. The country's influence stems from a rare combination of factors – it is a major hub for global trade and finance that remains deeply committed to multilateralism, international co-operation and the rules-based order. One sector where this leadership is especially visible is gold. In 2023, the UAE became the world's second-largest gold trading hub. This was achieved through leadership that balanced the importance of building a trusted regulatory framework for gold trading with the creation of a business-friendly environment. The Ministry of Economy and Tourism has developed robust regulations and compliance procedures that are in line with – and in some areas exceed – the highest international standards. Meanwhile, efforts by the Dubai Multi Commodities Centre have contributed significantly to the sector's trade growth. More than 1,500 gold and precious metals companies now operate from the emirate and collectively benefit from specialised industry infrastructure, products and services. Yet with scale comes responsibility. Gold is a high-value, low-volume, fungible commodity that is an attractive target for illicit use, including money laundering. The Financial Action Task Force has identified many of the risks associated with the gold sector – risks that have been echoed in the UAE's latest National Risk Assessment. This assessment calls on all public and private stakeholders to identify, understand and mitigate the risks involved in conducting their activities, in close collaboration with the authorities. Many gold-exporting countries have limited oversight of artisanal mining, where gold often functions as an informal currency. Globally, there is no consistent reporting standard, and regulatory regimes vary widely, creating gaps that criminals can exploit. UAE sets global gold trade benchmark The UAE has chosen not to step back but to set a new global benchmark for responsible trade in gold, aligning its framework with international best practices, including the OECD's Due Diligence Guidance for Responsible Supply Chains of Minerals from Conflict-Affected and High-Risk Areas. Since 2023, the UAE Ministry of Economy has required all gold refiners to conduct full supply chain due diligence in line with the OECD's guidelines and submit independently audited reports. In addition, many refineries have signed up to the UAE Good Delivery standard for accreditation, which includes further disclosure on a refinery's technical state, capacity and financial health. Traders must also report suspicious transactions to the UAE's Financial Intelligence Unit through the UN-developed goAML platform. Unlike other bullion centres, the UAE's framework is mandatory, not voluntary, setting a new global precedent. Crucially, it applies not only to UAE Good Delivery refiners but to all refiners operating in the UAE, regardless of Good Delivery accreditation. Compliant entities are rewarded with market access, while those that fall short face tougher conditions as buyers prioritise trusted partners. Those with serious failings face tough sanctions and enforcement, including closure orders. Gold traders in the UAE fall under the category of Designated Non-Financial Businesses and Professions, bringing them under Federal Decree Law No. 20 of 2018 on anti-money laundering and combating terrorism financing, in line with FATF standards. The Ministry of Economy and Tourism enforces strict supervision. Inspections were carried out on dealers in precious metals and stones, resulting in significant fines where companies were found non-compliant. In addition, between 2022 and 2024, the total number of seizures of gold and precious metals and stones from all points of entry increased by more than 70 per cent, illustrating how enforcement fights illicit flows. The UAE requires disclosure of portable gold, including its source and purpose of entry. This measure supports efforts to thwart illegal trading and promote responsible precious metals transactions. As part of its efforts to enhance integrity across the gold supply chain, the DMCC joined forces with the World Gold Council in 2022 to address the challenge of hand-carried gold linked to illicit trade. This partnership includes an annual training programme for the gold industry, engagement with bullion banks, the development of retail gold investment principles and the commissioning of consumer research to better understand market dynamics. Trade data discrepancies can also arise between exporting and importing countries. While these often occur due to a number of understandable factors, such as time lags created by customs processing procedures, the rerouting of a commodity while in transit, or the impact of long-term warehousing, they nonetheless create challenges when monitoring illicit flows. The UAE, however, reports its gold imports comprehensively and on time, including to international databases, aligning with OECD expectations for transparent mineral supply chains. What this means is that there are cross-border challenges at stake that call for shared international responsibility and require renewed and constant commitments by all concerned countries. The UAE is working closely with the World Gold Council and other partners on several initiatives to strengthen the integrity of the gold market. This includes the development of an anti-money laundering training programme for the sector and running trade workshops with key industry bodies including the Dubai Jewellery Group and the DMCC. Work has also begun on a review of rules regarding hand-carried gold and rules to strengthen border enforcement. We are also exploring innovative technology, from chemical 'fingerprinting' to verify declared provenance, to mobile refining units for artisanal and small-scale miners. These measures reduce environmental damage, enhance traceability and help channel gold to legitimate buyers, including central banks, all in line with OECD-aligned responsible sourcing frameworks. The bottom line is this: the UAE is not just trading gold, it is shaping the future of the gold industry, working transparently, responsibly and through international co-operation with other global standard-setters.
The National
4 days ago
- The National
New regulations could see Musk's Starlink finally come to UAE
The UAE's telecoms regulator is looking at new regulations that could pave the way for satellite operators such as Starlink to begin operations in the country. The Telecommunications and Digital Government Regulatory Authority said on its website that it wanted feedback for regulations to "regularise the current resale of satellite services". Once the TDRA finalises specifics for what it describes as a "category B" licence, the door would be opened for many businesses and entities to sell connectivity devices and services – paving the way for resellers of low-earth-orbit satellite internet communications devices such as Starlink. Under current regulations, only certain UAE entities with the current telecoms licence are permitted to provide these services. According to SpaceX, operator of Starlink, the service is "pending regulatory approval" in the UAE. A document posted this year to the TDRA's website showed that Starlink was granted a regulatory licence in 2024 that will last about 10 years for 'maritime satellite internet services'. In the Middle East, Starlink is available in Qatar, Yemen, Oman, Bahrain, Jordan and Israel, and is billed as bridging the connectivity gap in remote and desert locations. When it was introduced in Yemen, Starlink was said to be a way to break the Houthis' monopoly over telecom services. Jimmy Grewal, executive director Dubai-based marine electronics company Elcome International, said he was excited about the the opportunities presented during the public comment period. "The TDRA's open consultation is a welcome step that brings clarity to a fast-moving market and will accelerate the safe rollout of next-generation satellite connectivity across the UAE," he said. Mr Grewal said a detailed framework for resellers like Elcome will strengthen options, resilience and productivity for government, maritime, aviation and offshore energy sector workers seeking internet and communications connectivity. He said he was also prepared for the possibility of the regulations opening the door for Starlink access in the UAE. "As one of the first and largest Starlink resellers in the world, Elcome is keen to bring the benefits of Starlink to our home market once the new regulatory framework is in place," Mr Grewal said. The regulatory body is accepting public consultation until September 25.
