In a parallel development, the government has moved forward with the partial repeal of sections of the Employment Equity Act, particularly those related to Section 53 — the controversial procurement compliance clause requiring a certificate of compliance for companies seeking to do business with the state.
This repeal, which comes after significant lobbying from the private sector, removes the blanket requirement for a compliance certificate, though designated employers are still expected to submit EE Reports and implement Employment Equity Plans. The rationale behind this adjustment, according to the Department of Employment and Labour, is to reduce red tape while still holding employers accountable for transformation progress.
Designated employers must take note: compliance obligations remain. Reporting deadlines, demographic targets, and transformation strategies are still part of the regulatory framework. What has changed is the mechanism for state procurement eligibility, shifting from a compliance certificate model to more targeted procurement regulations.
This development is both a relief and a warning. While the administrative burden is reduced, the spotlight on equitable workplace practices is growing, and public scrutiny is intensifying.
