A Simple Guide for Business Owners | Dynamic Business Consulting
South Africa’s amended Employment Equity Act is here — and it’s changing how businesses hire, promote, and plan their workforce. If your company falls under the new rules, you’re now required to submit an Employment Equity (EE) report every year.
But don’t worry — at Dynamic Business Consulting, we’re here to make things simple.
⚖️ What is the New Employment Equity Law?
In September 2023, the South African government updated the Employment Equity Act (EEA) to improve workplace transformation. These changes are designed to address racial imbalances, especially in senior and skilled roles.
The new law gives the Minister of Employment and Labour the power to set race-based sector targets for businesses. If you don’t comply, you risk fines, audits, and even losing access to government contracts.
📋 Who Must Submit an EE Report?
You are a designated employer if:
- You employ 50 or more employees, OR
- Your annual turnover is above the threshold for your industry (even if you employ fewer than 50 people)
Examples of turnover thresholds by sector:
| Sector | Annual Turnover Threshold |
|---|---|
| Wholesale & Retail Trade | R75 million |
| Manufacturing | R45 million |
| Construction | R30 million |
| Agriculture | R6 million |
| Financial Services | R15 million |
Source: Department of Employment and Labour
📑 What Must Be Submitted?
Your Employment Equity submission includes:
- EEA2 Form
This outlines your workforce profile by race, gender, and disability, along with your equity plans and goals. - EEA4 Form
This covers income differentials and pay gap analysis. - Employment Equity Plan
A written document showing how your business will reach transformation targets over 1–5 years.
🧾 Step-by-Step: How to Submit Your EE Report
✅ Step 1: Register on the EE Online Portal
Go to https://ee.labour.gov.za and create a profile for your business.
✅ Step 2: Draft Your Employment Equity Plan
You’ll need to outline:
- Current workforce demographics
- Targets by race, gender, and disability
- Actions for recruitment, promotion, and training
- Timeframes and responsible persons
Need help with this? Our consultants at Dynamic Business Consulting can create a custom EE Plan for you.
✅ Step 3: Fill in the EEA2 and EEA4 Forms
These are done online through the system. You’ll capture your employee data by occupational level and race.
✅ Step 4: Submit Before the Deadline
- Manual submissions: by 1 October each year
- Online submissions: by 15 January of the following year
Late submissions may attract penalties.
❌ What Happens if You Don’t Submit?
Non-compliance has serious consequences:
- Fines up to R2.7 million per violation
- Disqualification from state tenders
- Possible labour inspections and audits
Also, you will not receive an EE Compliance Certificate — a must-have document for doing business with the public sector.
📣 Why This Matters to You
Employment Equity is not just a legal box to tick. It’s about fair opportunity and sustainable business practices. But it’s also complex, time-sensitive, and tied directly to your B-BBEE scorecard and government access.
That’s why many South African businesses partner with professionals to handle this process properly.
🤝 Need Help? We’ve Got You Covered
At Dynamic Business Consulting, we offer:
- ✅ Employment Equity Plans and Reports
- ✅ Online EE Submissions
- ✅ Transformation Advisory
- ✅ Training for your EE Committee
- ✅ Compliance Certificates
- ✅ Ongoing Support
Let us take the stress off your plate while you stay 100% compliant — and ahead of the law.
🕒 Don’t Wait Until the Deadline
The EE submission deadline for online reports is 15 January 2026 — but you should start now.
Because compliance isn’t optional anymore — it’s mandatory.
Dynamic Business Consulting
Your partner in transformation, compliance, and business growth.
