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IOL News
02-06-2025
- Business
- IOL News
Preparing for new employment equity targets in South Africa's financial sector
Explore the recent amendments to South Africa's Employment Equity Act and discover how financial institutions must adapt to new sector-specific targets to ensure compliance and drive transformation. Image: Freepik The transformation imperative in South Africa's financial services sector has reached a critical juncture with the recent amendments to the Employment Equity Act 55 of 1998 (EEA), which came into effect on 15 April 2025. These legislative changes signal a transition from a discretionary compliance model to a more prescriptive and measurable approach. Employers in the financial services sector are now required to actively drive change through clearly defined numerical targets and strategic employment equity planning. This is particularly important given the slow pace of transformation across all sectors, including the financial services sector. The sector faces challenges such as the underrepresentation of historically disadvantaged individuals in executive roles, skill shortages, and complex corporate structures. As a result, the financial services sector is under increased pressure to demonstrate concrete transformation outcomes. Sector-specific targets: What employers in the financial services sector must achieve The key driver behind these heightened obligations is the introduction of section 15A into the EEA. This provision grants the Minister of Employment and Labour the authority to determine sector-specific numerical targets applicable to designated employers. The amendments introduce five-year sectoral targets tailored to, amongst other sectors, the financial and insurance sector. Designated employers operating within this sector are required to incorporate these into their Employment Equity Plans (EEPs). For the financial and insurance sector specifically, the sectoral targets require that 63.1% of top management positions be held by members of designated groups. Of these, 27.8% should be occupied by males from designated groups, and 35.3% by females from those groups. At senior management level, the target increases to 77.0%, with 31.7% allocated to males and 45.3% to females within designated groups. For the professionally qualified and middle management category, the target is set at 86.8%, broken down into 40.7% male and 46.1% female representation among designated groups. For skilled technical positions, 95.6% of these are expected to be held by designated groups, comprising 49.5% male and 46.1% female representation. In addition to these occupational level targets, there is a universal requirement across all levels that at least 3% of positions be filled by persons with disabilities. These targets are not merely aspirational, they are enforceable. Employers are expected to report progress annually, and a failure to meet these thresholds may result in scrutiny, penalties, or loss of access to state contracts. While the legislation allows employers to justify non-compliance with sectoral targets, these justifications will be rigorously assessed. Acceptable grounds may include a lack of suitably qualified candidates from designated groups, limited promotion or recruitment opportunities, the impact of business transfers, mergers, CCMA awards, court orders, or adverse economic conditions. Importantly, these reasons must be thoroughly documented. The onus is on the employer to prove their validity, and unsupported or vague justifications are unlikely to be accepted. Therefore, employers must maintain detailed records and internal analyses to substantiate any departure from their EEP commitments. For effective implementation, organisations must strengthen their internal employment equity structures. This includes training line managers and employment equity forum representatives, particularly those involved in recruitment and promotion decisions. These forums must be empowered to act as transformation champions within the business. Additionally, employers should upgrade administrative processes to support accurate data collection, timely reporting, and robust monitoring. Record-keeping is particularly critical where employers rely on justifications for not meeting targets.
IOL News
22-04-2025
- Business
- IOL News
Unpacking the final employment equity sector targets in South Africa
By Melissa Cogger and Talita Laubscher On 15 April 2025, the Minister of Employment and Labour published the 'Determination of Sectoral Numerical Targets' (Final Sector Target Regulations) and the 'Employment Equity Regulations, 2025' (General Administrative EE Regulations), which repeal the Employment Equity Regulations, 2014 (collectively, the 2025 EEA Regulations). Video Player is loading. Play Video Play Unmute Current Time 0:00 / Duration -:- Loaded : 0% Stream Type LIVE Seek to live, currently behind live LIVE Remaining Time - 0:00 This is a modal window. Beginning of dialog window. Escape will cancel and close the window. Text Color White Black Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Background Color Black White Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Transparent Window Color Black White Red Green Blue Yellow Magenta Cyan Transparency Transparent Semi-Transparent Opaque Font Size 50% 75% 100% 125% 150% 175% 200% 300% 400% Text Edge Style None Raised Depressed Uniform Dropshadow Font Family Proportional Sans-Serif Monospace Sans-Serif Proportional Serif Monospace Serif Casual Script Small Caps Reset restore all settings to the default values Done Close Modal Dialog End of dialog window. Advertisement Next Stay Close ✕ The 2025 EEA Regulations are published, following the Employment Equity Amendment Act, 2022 (Amendment Act) coming into effect on 1 January 2025, and the purported consultations that took place between the Department of Employment and Labour (DoEL) and representatives of various sectors. In the Final Sector Target Regulations, the Minister has identified 18 national economic sectors and set numerical targets for each sector. The ultimate purpose of these sector targets is to ensure the equitable representation of suitably qualified people from designated groups. In terms of section 20(2A) of the Employment Equity Act, 1998 (EEA) the numerical goals set by an employer must comply with any sector target that applies to that employer and is, in terms of section 42(1)(aA), one of the measures that is considered in the assessment of compliance. Further, the Minister may only issue a certificate of compliance in terms of section 53 of the EEA if the Minister is satisfied that, among other things, the employer has complied with a sector target that applies to that employer, and if it did not, there were justifiable reasons for non-compliance. The enforcement of these sector targets will have significant impact on designated employers and their ability to do business with the State. Further, fines and penalties may apply for non-compliance with sector targets unless a justifiable reason exists for such non-compliance. History behind the targets The timeline and process leading to the finalisation of the sectoral targets involved several stages, as set out below: Draft 2018 EEA Regulations). These 18 sectors have remained unchanged, and are based on the broad categorisation in the Standard Industrial Classification Codes. Following the tabling of the Employment Equity Amendment Bill in Parliament, various meetings were held with stakeholders during the period from 2019 to 2022 regarding the proposed sector targets, which were initially based on the sector charters published under the Broad-Based Black Economic Empowerment Act, 2003 (BBBEE Act). The President only signed the Employment Equity Amendment Bill into law on 6 April 2023. The promulgation and coming into effect of the Amendment Act would be on a later date, which we now know to be 1 January 2025. Draft targets were published for public comment on 12 May 2023 (2023 Draft Sector Targets) as well as on 1 February 2024 (2024 Draft Sector Targets). Such publication took place even though the Amendment Act had not yet come into effect. The Amendment Act came into effect on 1 January 2025, and section 15A of the EEA empowers the Minister (following a multi-stage process of consultation) to set sector targets. During February 2025, the DoEL conducted virtual meetings with stakeholders in the 18 sectors and invited written representations within an expedited timeframe on new proposed draft targets (2025 Draft Targets). These 2025 Draft Targets were not published for public comment. Following the virtual meetings, and during February and March 2025 various stakeholders requested and held bilateral engagements with the DoEL as a means to discuss the rationale underlying the 2025 Draft Targets, as well as the rationale pertaining to the identification of the sectors. The sectors had remained unchanged since the sectors were first identified in the Draft 2018 EEA regulations, despite representations by various organisations that these were over-broad and did not take into account the unique circumstances of sub-sectors. Finally, the sector targets were published in final form on 15 April 2025 (Final Sector Targets), with no further period for public comment provided, and without prior publication of these Final Sector Targets in draft form. 18 sectors were identified by the DoEL on 21 September 2018 through the publication of draft regulations (). These 18 sectors have remained unchanged, and are based on the broad categorisation in the Standard Industrial Classification Codes. As with the 2024 Draft Sector Targets, the Final Sector Targets are set for males and females from 'designated groups' generally and are not broken down further per population group. Further, and as previously recorded in the 2024 Draft Sector Targets, the five-year sector targets are not intended to add up to 100%; as the sector numerical target excludes white males with no disabilities and foreign nationals as part of the workforce profile. When determining annual employment equity targets towards achieving the five-year sector numerical targets, a designated employer must set numerical targets for all designated groups in each of the four upper occupational levels in relation to the applicable sector targets and Economically Active Population (EAP), and for persons with disabilities. The General Administrative EE Regulations state that the manner in which designated employers must take the sector targets into account and apply the affirmative action measures is set out in the EEA, the General Administrative EE Regulations and the codes of good practice issued under the EEA. Comparison of the 2024 Draft Sector Targets and the Final Sector Targets In comparing the 2024 Draft Sector Targets and the Final Sector Targets, the following is notable: Overall, the Final Sector Targets are significantly higher than the 2024 Draft Sector targets, with significant increases particularly for females in the designated groups. For instance, the target for females in senior management in the Finance and Insurance sector has increased by 21.3% when compared to the 2024 Draft Sector Targets. Targets set for females in senior management have similarly significantly increased in the Professional, Scientific and Technical Activities sector by 23.1%. Conversely, there have been some decreases in the targets for males in the designated groups. The target for people with disabilities has been increased from 2% to 3% across all sectors. Some of the principles agreed to between the South African Government and Solidarity trade union during 2023, which were previously included in the Draft 2024 Targets are absent in the 2025 EEA Regulations. For example, the 2025 EEA Regulations do not explicitly contain the principle " No employment termination of any kind may be effected as a consequence of affirmative action ." The principle that ' affirmative action shall be applied in a nuanced way ' is also missing from the 2025 EEA Regulations, however the regulations do outline guidelines for implementing affirmative action. ." The principle that ' ' is also missing from the 2025 EEA Regulations, however the regulations do outline guidelines for implementing affirmative action. Unlike the 2024 Draft Sector Targets, the DoEL has not explained in the Final Sector Targets what factors it took into account when setting the five-year sector targets. For example, it does not refer to the latest workforce profile statistics, the EAP, the various sector codes published under the BBBEE Act, or the unique sector dynamics. Similar to the 2025 Draft Sector Targets, guidance is provided on the over-representation of any particular group. The 2025 General Administrative EE Regulations discourage designated employers from perpetuating the over-representation of any group if their representation exceeds the applicable EAP in a particular occupational level. Further information is provided in circumstances where a designated employer exceeds the sector target. For example, if a designated employer has exceeded the numerical target set for a particular designated group at an occupational level, it should continue to set targets that maintain compliance with the EAP. There is no longer a prohibition on 'regression' in a particular race/gender group, which was contained in the Draft 2024 Sector Targets. It is possible for designated employers that operate in more than one province to adopt multiple provincial EAPs, taking into account the nature of their operations and geographical area. This was not previously permitted in the Draft 2024 regulations. Rationale for revised targets For various sectors, the Final Sector Targets are the same as those targets shared by the DoEL during the virtual meetings held in February 2025 and are unchanged despite representations and bilateral engagements. Importantly, those draft targets shared in February 2025 were not published in the Government Gazette for public comment. The DoEL explained in the meetings that the 2025 Draft Targets were based on the feedback received in the prior public participation process, the latest workforce profile statistics and sector dynamics. The DoEL indicated that the rationale for the change in draft targets was due to various sectors comparing well and exceeding the 2024 Draft Sector Targets in the last reporting period, which appears to explain the markedly increased and different Final Sector Targets. During engagements and in some of the bilateral engagements, the DoEL further explained its rationale and 'formulae'. The DoEL considered the workforce profiles of the various sectors for 2023 and 2024. It then set the target for the top four occupational levels at 6%, 7%, 8% and 9% respectively. This appears to be based on the DoEL's view that these are appropriate targets. The Final Sector Targets therefore do not appear to have been formulated on any scientific or empirical basis. The challenge arises when the workforce profiles of subsectors are considered. In some instances, the targets are then much higher than the 6%-9% principle applied by the DoEL, which makes compliance with the sector targets a challenge for these subsectors. Some comfort for designated employers Whilst section 20(2A) contemplates peremptory compliance with the Final Sector Targets when setting numerical goals, comfort should be taken in the well-established principles in employment equity law that have been interpreted and developed by our courts. In this regard, section 15(3) explicitly states that affirmative action measures include preferential treatment and numerical goals, but exclude quotas, and that there should not be absolute barriers to the appointment or promotion of over-represented groups. Regard should also be had to the justifiable reasons for non-compliance which are repeated in the General Administrative EE Regulations, which remain unchanged from the Draft 2024 Sector Targets. Bowmans Partner Talita Laubscher Melissa Cogger and Talita Laubscher are partners at Bowmans.
Al-Ahram Weekly
20-02-2025
- Business
- Al-Ahram Weekly
Dahlia Abdel-Fattah accredited as Egypt new consul general in Hamburg, Northern Germany - City Lights - Life & Style
Liv Assmann, foreign affairs commissioner of the Free and Hanseatic City of Hamburg, welcomed Dahlia Abdel-Fattah, the new Consul General of Egypt, during an official accreditation ceremony at Hamburg's senate chancellery on 17 February. During the event, Assmann presented CG Abdel-Fattah with The Consular Patent, confirmed by the State Parliament, which officially authorizes her to assume her duties in the four northern German states: Hamburg, Bremen, Lower Saxony, and Schleswig-Holstein. The event was marked by the ceremonial hoisting of the Egyptian flag in front of the senate chancellery, followed by an official meeting between the consul general, the foreign affairs commissioner, and the state cabinet members. The consul general outlined an ambitious agenda to foster relations between Egypt and Northern Germany, focusing on Hamburg. This agenda proposes five key pillars that reflect mutual interests and aim to deepen economic, investment, and cultural cooperation. Assmann welcomed the proposed initiatives to strengthen bilateral relations in various sectors and promote mutual interests and the economic benefits pursued by the two parties. Before assuming this position in Hamburg, Abdel-Fattah served as the deputy minister of foreign affairs for consular affairs and Egyptian expatriates. In this capacity, she supported the evacuation of foreign nationals from Gaza and Sudan during the most recent crises in both regions. In 2021, she was seconded to the Minister of Tourism and Antiquities cabinet to assume the position of director of international cooperation and treaties. As a career diplomat, CG Abdel-Fattah also served as the deputy chief of mission in Athens, Greece, the consul in Montreal, Canada, and the director of security and strategic affairs at the Egyptian Ministry of Foreign Affairs. Short link:
Saba Yemen
13-02-2025
- General
- Saba Yemen
Preparations to implement cleaning campaign in Sana'a Governorate
Sana'a - Saba: A joint meeting was held in Sana'a to discuss preparations for a comprehensive cleanliness campaign in the governorate during the month of Ramadan. The meeting, attended by officials from the Local Council, executive offices, and surrounding districts, reviewed the circular of the Minister of Administration, Local and Rural Development regarding community initiatives and the public cleaning system. The proposed plan for the campaign, presented by the Cleanliness and Improvement Fund, emphasized the role of the community, government agencies, the private sector, and the public sector in its success. The meeting also discussed the implementation of the 'Clean My House' campaign by the General Authority for Endowments and the importance of raising community awareness about cleanliness. The comprehensive cleanliness campaign is set to be launched next Saturday, followed by the 'Clean My House' campaign on Sunday. Cooperation and coordination between official and community bodies were stressed to achieve the desired goals of the campaign and create a clean, disease-free environment. Whatsapp Telegram Email Print more of (Local)
