Business
NEASA and Sakeliga Take Legal Stand Against New Employment Equity Targets
The National Employers’ Association of South Africa (NEASA) and Afrikaans business group Sakeliga have joined forces to legally challenge the government’s newly implemented Employment Equity Amendment Act (EEAA).
At the heart of their objection are new employment equity targets introduced by the Department of Labour. These targets apply to 18 key sectors and require medium to large businesses — especially those with 50 or more employees — to align their workforce with South Africa’s racial and gender demographics. This includes state entities, regardless of employee count.
In a joint media statement, NEASA and Sakeliga described the amended legislation as “unconstitutional, impractical, and harmful.” They announced plans to seek an urgent interdict to halt its implementation.
“We will launch immediate joint legal action, including seeking an interdict against the operation of the regulations, targets, and/or the Act,” the statement read. “We will continue to oppose the EEAA and the hiring quotas until they are reversed or rendered null and void.”
The organisations argue that the Act violates fundamental business freedoms — particularly the freedom of employers, business owners, and employees to associate and trade freely.
“The state is acting unconstitutionally,” they said, “because it makes totalitarian infringements under the guise of transformation. The EEAA demands commercial and social activities conform to rigid racial and demographic quotas.”
Calls for Caution and Legal Guidance
NEASA and Sakeliga are now advising businesses to obtain specialised employment law advice, tailored to their unique operational contexts. They warn that non-compliance with the new EEAA targets could expose companies to legal and reputational risks.
“Employers should minimise their legal risks while protecting their businesses, employees, and clients from this unconstitutional legislation.”
The EEAA has already sparked debate across South Africa’s corporate and legal communities. While government maintains it is a critical step toward workplace transformation, opponents argue that it imposes unrealistic targets that could stunt economic growth and undermine operational autonomy.
What Happens Next?
With NEASA and Sakeliga pushing for urgent legal intervention, the future of the Employment Equity Amendment Act could soon be tested in court. For now, businesses are urged to review their equity plans and seek legal counsel — while keeping a close eye on the unfolding litigation.
{Source: IOL}
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