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EMPLOYMENT EQUITY ACT NO. 55 OF 1998
[ASSENTED TO 12 OCTOBER, 1998] [DATE OF COMMENCEMENT TO BE PROCLAIMED] (Unless otherwise indicated)
( English text signed by the President )
ACT
To provide for employment equity; and to provide for matters incidental thereto.
Preamble.–Recognising–
that as a result of apartheid and other di scriminatory laws and practices, there are
disparities in employment, occupation and in come within the national labour market; and
that those disparities create such pronounced disadvantages for certain categories of
people that they cannot be redressed si mply by repealing discriminatory laws,
Therefore, in order to–
promote the constitutional right of equali ty and the exercise of true democracy;
eliminate unfair discrimination in employment;
ensure the implementation of employment equity to redress the effects of discrimination;
achieve a diverse workforce broadly representative of our people;
promote economic development and efficiency in the workforce; and
give effect to the obligations of the Repub lic as a member of the International Labour
Organisation,

ARRANGEMENT OF SECTIONS
CHAPTER I
DEFINITIONS, PURPOSE, INTERPRETATION AND APPLICATION
1. Definitions
2. Purpose of this Act
3. Interpretation of this Act

4. Application of this Act
CHAPTER II
PROHIBITION OF UNFAIR DISCRIMINATION
5. Elimination of unfair discrimination
6. Prohibition of unfair discrimination
7. Medical testing
8. Psychometric testing
9. Applicants
10. Disputes concerning this Chapter
11. Burden of proof
CHAPTER III
AFFIRMATIVE ACTION
12. Application of this Chapter
13. Duties of designated employers
14. Voluntary compliance with this Chapter
15. Affirmative action measures
16. Consultation with employees
17. Matters for consultation
18. Disclosure of information
19. Analysis
20. Employment equity plan
21. Report5
22. Publication of report
23. Successive employment equity plans
24. Designated employer must assign manager
25. Duty to inform
26. Duty to keep records
27. Income differentials
CHAPTER IV
COMMISSION FOR EMPLOYMENT EQUITY
28. Establishment of Commission for Employment Equity
29. Composition of Commission for Employment Equity
30. Functions of Commission fo r Employment Equity
31. Staff and expenses
32. Public hearings
33. Report by Commission for Employment Equity
CHAPTER V
MONITORING, ENFORCEMENT AND LEGAL PROCEEDINGS

PART A
Monitoring
34. Monitoring by employees and tr ade union representatives
Enforcement
35. Powers of labour inspectors
36. Undertaking to comply
37. Compliance order
38. Limitations
39. Objections against compliance order
40. Appeal from compliance order
41. Register of designated employers
42. Assessment of compliance
43. Review by Director-General
44. Outcome of Director-General’s review
45. Failure to comply with Director-General’s recommendation
PART B
Legal proceedings
46. Conflict of proceedings
47. Consolidation of proceedings
48. Powers of commissioner in arbitration proceedings
49. Jurisdiction of Labour Court
50. Powers of Labour Court
PART C
Protection of employee rights
51. Protection of employee rights
52. Procedure for disputes
CHAPTER VI
GENERAL PROVISIONS
53. State contracts
54. Codes of good practice
55. Regulations
56. Delegations
57. Temporary employment services

58. Designation of organs of state
59. Breach of confidentiality
60. Liability of employers
61. Obstruction, undue influence and fraud
62. This Act binds the State
63. Application of Act when in conflict with other laws
64. Repeal of laws and transitional arrangements
65. Short title and commencement
Schedule 1 Maximum permissible fines that may be imposed for contravening this Act
Schedule 2 Laws repealed
Schedule 3 Transitional arrangements
Schedule 4 Turnover threshold applicable to designated employers

CHAPTER I
DEFINITIONS, PURPOSE, INTERPRETATION AND APPLICATION
1. Definitions.–In this Act, unless the context otherwise indicates–
“Basic Conditions of Employment Act ” means the Basic Conditions of Employment
Act, 1997 (Act No. 75 of 1997);
” black people ” is a generic term which means Africans, Coloureds and Indians;
“CCMA ” means the Commission for Concilia tion, Mediation and Arbitration,
established by section 112 of the Labour Relations Act;
“code of good practice ” means a document issued by the Minister in terms of section 54;
“collective agreement ” means a written agreement concerning terms and conditions of
employment or any other matter of mutual in terest concluded by one or more registered
trade unions, on the one hand and, on the other hand–
a. one or more employers;
b. one or more registered em ployers’ organisations; or
c. one or more employers and one or more registered employers’
organisations;
“Commission ” means the Commission for Employme nt Equity, established by section
28;
“Constitution” means the Constitution of the Repub lic of South Africa, 1996 (Act No.
108 of 1996);

“designated employer” means–
a. a person who employs 50 or more employees;
b. a person who employs fewer than 50 employees but has a total annual
turnover that is equal to or above the applicable annual turnover of a small
business in terms of the Schedule 4 of this Act;
c. a municipality, as referred to in Chapter 7 of the Constitution;
d. an organ of state as defined in section 239 of the Constitution, but
excluding local spheres of government, the National Defence Force, the
National Intelligence Agency and the S outh African Secret Service; and
e. an employer bound by collective agreement in terms of section 23 or 31 of
the Labour Relations Act, which appoi nts it as a designated employer in
terms of this Act, to the extent provided for in the agreement.
“designated groups” means black people, women and people with disabilities;
“Director-General” means the Director-General of the Department of Labour;
“dismissal” has the meaning assigned to it in section 186 of the Labour Relations Act;
“dispute” includes an alleged dispute;
“employee” means any person other than an independent contractor who–
a. works for another person or for the Stat e and who receives, or is entitled to
receive, any remuneration; and
b. in any manner assists in carrying on or conducting the business of an
employer,
and “employed” and “employment” have corresponding meanings;
“employment law” means any provision of this Act or any of the following Acts:
a. The Unemployment Insurance Act, 1966 (Act No. 30 of 1966);
b. the Guidance and Placement Act, 1981 (Act No. 62 of 1981);
c. the Manpower Training Act, 1981 (Act No. 56 of 1981);
d. the Occupational Health and Safety Act, 1993 (Act No. 85 of 1993);
e. the Compensation for Occupational Inju ries and Diseases Act, 1993 (Act
No. 130 of 1993);
f. the Labour Relations Act, 1995 (Act No. 66 of 1995);
g. the Basic Conditions of Employment Act, 1997 (Act No. 75 of 1997);
h. any other Act, whose administration ha s been assigned to the Minister.
“employment policy or practice” includes, but is not limited to–
a. recruitment procedures, advertis ing and selection criteria;

b. appointments and the appointment process;
c. job classification and grading;
d. remuneration, employment benefits and terms and conditions of
employment;
e. job assignments;
f. the working environment and facilities;
g. training and development;
h. performance evaluation systems;
i. promotion;
j. transfer;
k. demotion;
l. disciplinary measures other than dismissal; and
m. dismissal.
“family responsibility” means the responsibility of empl oyees in relation to their spouse
or partner, their dependant children or other members of their immediate family who
need their care or support;
“HIV” means the Human Immunodeficiency Virus;
“labour inspector” means a person appointed in te rms of section 65 of the Basic
Conditions of Employment Act;
“Labour Relations Act” means the Labour Relations Ac t, 1995 (Act No. 66 of 1995);
“medical testing” includes any test, question, inqui ry or other means designed to
ascertain, or which has the effect of enab ling the employer to ascertain, whether an
employee has any medical condition;
“Minister” means the Minister of Labour;
“NEDLAC” means the National Economic, Development and Labour Council
established by section 2 of the National Economic, Development and Labour Council
Act, 1994 (Act No. 35 of 1994);
“organ of state” means an organ of state as define d in section 239 of the Constitution;
“people with disabilities” means people who have a long-te rm or recurring physical or
mental impairment which substantially lim its their prospects of entry into, or
advancement in, employment;
“pregnancy” includes intended pregnancy, termina tion of pregnancy and any medical
circumstances related to pregnancy;
“prescribed” means prescribed by a regul ation made under section 55;

“public service” means the public service referred to in section 1 (1) of the Public
Service Act, 1994 (promulgated by Procla mation No. 103 of 1994), and includes any
organisational component contemplated in section 7 (4) of that Act and specified in the
first column of Schedule 2 to that Act, but excluding–
a. the National Defence Force;
b. the National Intelligence Agency; and
c. the South African Secret Service.
“reasonable accommodation” means any modification or adjustment to a job or to the
working environment that will enable a pers on from a designated group to have access to
or participate or advance in employment;
“registered employers’ organisation” means an employers’ organisation as defined in
section 213 of the Labour Relations Act and registered in terms of section 96 of that Act;
“registered trade union” means a trade union as define d in section 213 of the Labour
Relations Act and registered in terms of section 96 of that Act;
“remuneration” means any payment in money or in kind, or both in money and in kind,
made or owing to any person in return for that person working for any other person,

including the State;
“representative trade union” means a registered trade union, or two or more registered
trade unions acting jointly, that are sufficien tly representative of the employees employed
by an employer in a workplace;
“Republic” means the Republic of South Africa as defined in the Constitution;
“serve” or “submit” , in relation to any commu nication, means either–
a. to send it in writing delivered by hand or registered post; or
b. to transmit it using any electronic mechanism as a result of which the
recipient is capable of pr inting the communication;
“suitably qualified person” means a person contemplated in sections 20 (3) and (4);
“this Act” includes any regulations made under s ection 55, but excludes any footnote;
“trade union representative” means a member of a regi stered trade union who is
elected to represent em ployees in a workplace;
“workplace forum” means a workplace forum establishe d in terms of Chapter V of the
Labour Relations Act.

2. Purpose of this Act.–The purpose of this Act is to achieve equity in the workplace
by–
a. promoting equal opportunity and fair treatment in employment through the
elimination of unfair discrimination; and
b. implementing affirmative action measures to redress the disadvantages in
employment experienced by designated groups , in order to ensure their equitable
representation in all occ upational categories and leve ls in the workforce.
3. Interpretation of this Act .–This Act must be interpreted–
a. in compliance with the Constitution;
b. so as to give effect to its purpose;
c. taking into account any relevant code of good practice issued in terms of this Act
or any other employment law; and
d. in compliance with the international law ob ligations of the Republic, in particular
those contained in the In ternational Labour Organi sation Convention (No. 111)
concerning Discrimination in Respec t of Employment and Occupation.
4. Application of this Act.–(1) Chapter II of this Act applies to all employees and
employers.
(2) Except where Chapter III provides otherwis e, Chapter III of this Act applies only to
designated employers and pe ople from designated groups.
(3) This Act does not apply to members of the National Defence Force, the National
Intelligence Agency, or the South African Secret Service1.
CHAPTER II
PROHIBITION OF UNFAIR DISCRIMINATION
5. Elimination of unfair discrimination.–Every employer must take steps to promote
equal opportunity in the workplace by eliminating unfair discrimination in any
employment policy or practice.
6. Prohibition of unfair discrimination .–(1) No person may unfairly discriminate,
directly or indirectly, agains t an employee, in any employme nt policy or practice, on one
or more grounds, including race, gender, sex, pregnancy, marital status, family
responsibility, ethnic or social origin, colour, sexual orientation, age, disability, religion,
HIV status, conscience, belief, political opinion, culture, language and birth.
(2) It is not unfair discrimination to–
a. take affirmative action measures consiste nt with the purpose of this Act; or
b. distinguish, exclude or pref er any person on the basis of an inherent requirement
of a job.

(3) Harassment of an employee is a form of unfair discrimination and is prohibited on
any one, or a combination of grounds of unfai r discrimination listed in subsection (1).
7. Medical testing.–(1) Medical testing of an employee is prohibited, unless–
a. legislation permits or requ ires the testing; or
b. it is justifiable in the ligh t of medical facts, employme nt conditions, social policy,
the fair distribution of employee benefits or the inherent requirements of a job.
(2) Testing of an employee to determine th at employee’s HIV status is prohibited unless
such testing is determined justifiable by the Labour Court in terms of section 50 (4) of
this Act.
8. Psychometric testing .–Psychometric testing and othe r similar assessments of an
employee are prohibited unless the te st or assessment being used–
a. has been scientifically shown to be valid and reliable;
b. can be applied fairly to employees; and
c. is not biased against any employee or group.
9. Applicants .–For purposes of sections 6, 7 and 8, “employee” includes an applicant
for employment.
10. Disputes concerning this Chapter .–(1) In this section, the word “dispute”
excludes a dispute about an unf air dismissal, which must be referred to the appropriate
body for conciliation and arbitration or adju dication in terms of Chapter VIII of the
Labour Relations Act.
(2) Any party to a dispute concerning this Ch apter may refer the dispute in writing to the
CCMA within six months after the act or om ission that allegedly constitutes unfair
discrimination.
(3) The CCMA may at any time permit a party that shows good cause to refer a dispute
after the relevant time limit set out in subsection (2).
(4) The party that refers a dis pute must satisfy the CCMA that–
a. a copy of the referral has been served on every other party to the dispute; and
b. the referring party has made a reasonab le attempt to resolve the dispute.
(5) The CCMA must attempt to resolve the dispute through conciliation.
(6) If the dispute remains unresolved after c onciliation–
a. any party to the dispute may refer it to the Labour Court for adjudication; or
b. all the parties to the dispute may cons ent to arbitration of the dispute.

(7) The relevant provisions of Parts C and D of Chapter VII of the Labour Relations Act,
with the changes required by context, apply in respect of a dispute in terms of this
Chapter.
11. Burden of proof .–Whenever unfair discrimination2 is alleged in terms of this Act,
the employer against whom the allegation is made must establish that it is fair.
CHAPTER III
AFFIRMATIVE ACTION
12. Application of this Chapter .–Except where otherwise provided, this Chapter
applies only to designated employers.
13. Duties of de signated employers .–(1) Every designated employer must, in order to
achieve employment equity, implement affirmative action measures for people from
designated groups in terms of this Act.
(2) A designated employer must–
a. consult with its employees as required by section 16;
b. conduct an analysis as required by section 19;
c. prepare an employment equity plan as required by section 20; and
d. report to the Director-General on progre ss made in implementing its employment
equity plan, as required by section 21.
14. Voluntary compliance with this Chapter .–An employer that is not a designated
employer may notify the Director-G eneral that it intends to comply with this Chapter as if
it were a designated employer.
15. Affirmative action measures.–(1) Affirmative action measures are measures
designed to ensure that suitably qualified people from designated groups have equal
employment opportunities and are equitably represented in all occupational categories
and levels in the workforce of a designated employer.
(2) Affirmative action measures implemente d by a designated employer must include–
a. measures to identify and eliminate employment barriers, including unfair
discrimination, which adversely aff ect people from designated groups;
b. measures designed to further diversity in the workplace based on equal dignity
and respect of all people;
c. making reasonable accommodation for peopl e from designated groups in order to
ensure that they enjoy equal opportunities and are equ itably represented in the
workforce of a designated employer;
d. subject to subsection (3), measures to–

i. ensure the equitable representation of suitably qualified people from
designated groups in all occupationa l categories and levels in the
workforce; and
ii. retain and develop people from designated groups and to implement
appropriate training measur es, including measures in terms of an Act of
Parliament providing for skills development.
(3) The measures referred to in subsecti on (2) (d) include preferential treatment and
numerical goals, but exclude quotas.
(4) Subject to section 42, not hing in this section requires a designated employer to take
any decision concerning an employment policy or practi ce that would establish an
absolute barrier to the prosp ective or continued employment or advancement of people
who are not from designated groups.
16. Consultation with employees .–(1) A designated employer must take reasonable
steps to consult and attempt to reach agreemen t on the matters referred to in section 17–
a. with a representative trade union representing members at the workplace and its
employees or representatives nominated by them; or
b. if no representative trade union represents members at the workplace, with its
employees or representatives nominated by them.
(2) The employees or their nominated repres entatives with whom an employer consults
in terms of subsection (1) (a) and (b), taken as a whole, must reflect the interests of–
a. employees from across all occupational ca tegories and levels of the employer’s
workforce;
b. employees from designated groups; and
c. employees who are not from designated groups.
(3) This section does not affect the obliga tion of any designated employer in terms of
section 86 of the Labour Relations Act to co nsult and reach consensus with a workplace
forum on any of the matters referred to in section 17 of this Act.
17. Matters for consultation.–A designated employer must consult the parties referred
to in section 16 concerning–
a. the conduct of the analysis re ferred to in section 19;
b. the preparation and implementation of the employment equity plan referred to in
section 20; and
c. a report referred to in section 21.
18. Disclosure of information .–(1) When a designated employer engages in
consultation in terms of this Chapter, that employer must disclose to the consulting
parties all relevant information that will allow those parties to consult effectively.

(2) Unless this Act provides otherwise, the provisions of section 163 of the Labour
Relations Act, with the changes required by co ntext, apply to disclosure of information.
19. Analysis.–(1) A designated employer must collect information and conduct an
analysis, as prescribed, of its employment policies, practices, procedures and the working
environment, in order to identify employm ent barriers which adversely affect people
from designated groups.
(2) An analysis conducted in terms of subsection (1) must include a profile, as
prescribed, of the designated employer’s wo rkforce within each occupational category
and level in order to determine the de gree of underrepresentation of people from
designated groups in various occupational ca tegories and levels in that employer’s
workforce.
20. Employment equity plan .–(1) A designated employer must prepare and
implement an employment equity plan whic h will achieve reasonable progress towards
employment equity in that employer’s workforce.
(2) An employment equity plan prepared in terms of subsection (1) must state–
a. the objectives to be achieved for each year of the plan;
b. the affirmative action measures to be im plemented as required by section 15 (2);
c. where underrepresentation of people from designated groups has been identified
by the analysis, the numerical goals4 to achieve the equitable representation of
suitably qualified people from designa ted groups within each occupational
category and level in the workforce, the timetable within which this is to be
achieved, and the strategies inte nded to achieve those goals;
d. the timetable for each year of the plan fo r the achievement of goals and objectives
other than numerical goals;
e. the duration of the plan, which may not be shorter than one year or longer than
five years;
f. the procedures that will be used to mon itor and evaluate the implementation of the
plan and whether reasonable progress is being made towards implementing
employment equity;
g. the internal procedures to resolve an y dispute about the interpretation or
implementation of the plan;
h. the persons in the workforce, including senior managers, responsible for
monitoring and implementing the plan; and
i. any other prescribed matter.
(3) For purposes of this Act, a person may be suitably qualified for a job as a result of
any one of, or any combination of that person’s–
a. formal qualifications;
b. prior learning;
c. relevant experience; or

d. capacity to acquire, within a reasonab le time, the ability to do the job.
(4) When determining whether a person is su itably qualified for a job, an employer must-
–
a. review all the factors listed in subsection (3); and
b. determine whether that person has the ability to do the job in terms of any one of,
or any combination of those factors.
(5) In making a determination under subsection (4), an employer may not unfairly
discriminate against a person solely on the grounds of that person’s lack of relevant
experience.
(6) An employment equity plan may contain an y other measures that are consistent with
the purposes of this Act.
21. Report5.–(1) A designated employer that employs fewer than 150 employees
must–
a. submit its first report to the Director -General within 12 months after the
commencement of this Act or, if later, within 12 months after the date on which
that employer became a designated employer; and
b. thereafter, submit a report to the Direct or-General once every two years, on the
first working day of October.
(2) A designated employer that employs 150 or more employees must–
a. submit its first report to the Director -General within six months after the
commencement of this Act or, if later, w ithin six months after the date on which
that employer became a designated employer; and
b. thereafter, submit a report to the Direct or-General once every year on the first
working day of October.
(3) Despite subsections (1) and (2), a designated employer that submits its first report in
the 12-month period preceding the first work ing day of October, should only submit its
second report on the first working da y of October in the following year.
(4) The reports referred to in subsections (1) and (2) must contain the prescribed
information and must be signed by the chief executive officer of the designated employer.
(5) An employer who becomes a designate d employer in terms of the Act must–
a. report as contemplated in th is section for the duration of its current employment
equity plan; and
b. notify the Director-General in writing if it is unable to report as contemplated in
this section, and give reasons therefor.

(6) Every report prepared in terms of this section is a public document.
22. Publication of report.–(1) Every designated empl oyer that is a public company
must publish a summary of a report require d by section 21 in that employer’s annual
financial report.
(2) When a designated employer within any or gan of state has produced a report in terms
of section 21, the Minister responsible for that employer must table that report in
Parliament.
23. Successive employment equity plans .–Before the end of the term of its current
employment equity plan, a designated employe r must prepare a subsequent employment
equity plan.
24. Designated employer must assign manager.–(1) Every designated employer
must–
a. assign one or more senior managers to take responsibility for monitoring and
implementing an employment equity plan;
b. provide the managers with th e authority and means to perform their functions; and
c. take reasonable steps to ensure that the managers perform their functions.
(2) The assignment of responsibility to a manager in terms of subsection (1) does not
relieve the designated employer of any duty imposed by this Act or any other law.
25. Duty to inform.–(1) An employer must displa y at the workplace where it can be
read by employees a notice in the prescribed form, informing them about the provisions
of this Act6.
(2) A designated employer must, in each of its workplaces, place in prominent places
that are accessible to all employees–
a. the most recent report submitted by that employer to the Director-General;
b. any compliance order, arbitration award or order of the Labour Court concerning
the provisions of this Act in relation to that employer; and
c. any other document concerning this Act as may be prescribed.
(3) An employer who has an employment e quity plan, must make a copy of the plan
available to its employees for copying and consultation.
26. Duty to keep records.–An employer must establish and, for the prescribed period,
maintain records in respect of its workforce, its employment equity plan and any other
records relevant to its compliance with this Act.
27. Income differentials.–(1) Every designated employe r, when reporting in terms of
section 21 (1) and (2), must submit a stat ement, as prescribed, to the Employment

Conditions of Commission established by section 59 of the Basic Conditions of
Employment Act, on the remuneration and benefits received in each occupational
category and level of that employer’s workforce.
(2) Where disproportionate income differe ntials are reflected in the statement
contemplated in subsection (1), a desi gnated employer must take measures to
progressively reduce such differentials s ubject to guidance as may be given by the
Minister as contemplat ed in subsection (4).
(3) The measures referred to in subsection (2) may include–
a. collective bargaining;
b. compliance with sectoral determinations ma de by the Minister in terms of section
51 of the Basic Conditions of Employment Act;
c. applying the norms and benchmarks set by the Employment Conditions
Commission;
d. relevant measures contained in sk ills development legislation;
(4) The Employment Conditions Commission must research and investigate norms and
benchmarks for proportionate income differentia ls and advise the Minister on appropriate
measures for reducing disp roportional differentials.
(5) The Employment Conditions Commission may not disclose any information
pertaining to individual employees or employers.
(6) Parties to a collective ba rgaining process may request the information contained in
the statement contemplated in subsection (1) for the collective bargaining purposes
subject to section 16 (4) and (5 ) of the Labour Relations Act.
CHAPTER IV
COMMISSION FOR EMPLOYMENT EQUITY
28. Establishment of Commission for Employment Equity. –The Commission for
Employment Equity is hereby established.
(Date of commencement 14 May, 1999)
29. Composition of Commission for Employment Equity .–(1) The Commission
consists of a chairperson and eight other members appointed by the Minister to hold
office on a part-time basis.
(2) The members of the Commission must include–
a. two people nominated by those voting members of NEDLAC who represent
organised labour;

b. two people nominated by those voting members of NEDLAC who represent
organised business;
c. two people nominated by those voting members of NEDLAC who represent the
State; and
d. two people nominated by those voting members of NEDLAC who represent the
organisations of community and devel opment interests in the Development
Chamber in NEDLAC.
(3) A party that nominates persons in terms of subsection (2) must have due regard to
promoting the representivity of people from designated groups.
(4) The Chairperson and each other member of the Commission–
a. must have experience and e xpertise relevant to the functions contemplated in
section 30;
b. must act impartially when performi ng any function of the Commission;
c. may not engage in any activity that may undermine the integrity of the
Commission; and
d. must not participate in forming or co mmunicating any advice on any matter in
respect of which they have a direct fina ncial interest or any other conflict of
interest.
(5) The Minister must appoint a member of the Commission to act as chairperson
whenever the office of chairperson is vacant.
(6) The members of the Commission must choose from among themselves a person to
act in the capacity of chai rperson during the temporary absence of the chairperson.
(7) The Minister may determine–
a. the term of office for the chairperson and for each member of the Commission,
but no member’s term of offi ce may exceed five years;
b. the remuneration and allowances to be pa id to members of the Commission with
the concurrence of the Mini ster of Finance; and
c. any other conditions of appointment not provided for in this section.
(8) The chairperson and members of the Co mmission may resign by giving at least one
month’s written notice to the Minister.
(9) The Minister may remove the chairper son or a member of the Commission from
office for–
a. serious misconduct;
b. permanent incapacity;
c. that person’s absence from three consecu tive meetings of the Commission without
the prior permission of the chairper son, except on good cause shown; or

d. engaging in any activity that may underm ine the integrity of the Commission.
(Date of commencement of s. 29: 14 May, 1999)
30. Functions of Commission for Employment Equity .–(1) The Commission advises
the Minister on–
a. codes of good practice issued by the Mi nister in terms of section 54;
b. regulations made by the Minister in terms of section 55; and
c. policy and any other matter concerning this Act.
(2) In addition to the functions in subsection (1) the Commission may–
a. make awards recognising achievements of employers in furthering the purpose of
this Act;
b. research and report to the Minister on any matter relating to the application of this
Act, including appropriate and well-res earched norms and benchmarks for the
setting of numerical goals in various sectors; and
c. perform any other pr escribed function.
(Date of commencement of s. 30: 14 May, 1999)
31. Staff and expenses .–Subject to the laws governing the public service, the Minister
must provide the Commission with the staff necessary for the performance of its
functions.
(Date of commencement 14 May, 1999)
32. Public hearings .–In performing its functi ons, the Commission may–
a. call for written representations fr om members of the public; and
b. hold public hearings at whic h it may permit members of the public to make oral
representations.
(Date of commencement of s. 32: 14 May, 1999)
33. Report by Commission for Employment Equity .–The Commission must submit
an annual report to the Minister.
(Date of commencement 14 May, 1999)
CHAPTER V
MONITORING, ENFORCEMENT AND LEGAL PROCEEDINGS
PART A

Monitoring
34. Monitoring by employees and trade union representatives .–Any employee or
trade union representative may bring an allege d contravention of this Act to the attention
of–
a. another employee;
b. an employer;
c. a trade union;
d. a workplace forum;
e. a labour inspector;
f. the Director-General; or
g. (g) the Commission.
Enforcement
35. Powers of labour inspectors .–A labour inspector acting in terms of this Act has the
authority to enter, question and inspect as pr ovided for in sections 65 and 66 of the Basic
Conditions of Employment Act.
36. Undertaking to comply .–A labour inspector must request and obtain a written
undertaking from a designated employer to comply with paragraphs (a) to ( j) within a
specified period, if the inspector has reasona ble grounds to believe that the employer has
failed to–
a. consult with employees as required by section 16;
b. conduct an analysis as required by section 19;
c. prepare an employment equity pl an as required by section 20;
d. implement its employment equity plan;
e. submit an annual report as required by section 21;
f. publish its report as required by section 22;
g. prepare a successive employment equity plan as required by section 23;
h. assign responsibility to one or more seni or managers as required by section 24;
i. inform its employees as required by section 25; or
j. keep records as required by section 26.
37. Compliance order.–(1) A labour inspector may issue a compliance order to a
designated employer if that employer has–
a. refused to give a written undertaking in terms of section 36, when requested to do
so; or
b. failed to comply with a written undert aking given in terms of section 36.
(2) A compliance order issued in term s of subsection (1) must set out–
a. the name of the employer, and the wor kplaces to which the order applies;

b. those provisions of Chapte r III of this Act which the employer has not complied
with and details of the conduc t constituting non-compliance;
c. any written undertaking given by the empl oyer in terms of section 36 and any
failure by the employer to comply with the written undertaking;
d. any steps that the employer must take and the period within which those steps
must be taken;
e. the maximum fine, if any, that may be imposed on the employer in terms of
Schedule 1 for failing to comply with the order; and
f. any other prescribed information.
(3) A labour inspector who issues a compliance order must serve a copy of that order on
the employer named in it.
(4) A designated employer who receives a compliance order served in terms of
subsection (3) must display a copy of that order prominently at a place accessible to the
affected employees at each workplace named in it.
(5) A designated employer must comply with the compliance order within the time
period stated in it, unless the employer objec ts to that order in terms of section 39.
(6) If a designated employer does not comply w ith an order within the period stated in it,
or does not object to that orde r in terms of section 39, the Di rector-General may apply to
the Labour Court to make the compliance order an order of the Labour Court.
38. Limitations.–A labour inspector may not issue a compliance order in respect of a
failure to comply with a provision of Chapter III of this Act if–
a. the employer is being reviewed by the Direct or-General in terms of section 43; or
b. the Director-General has referred an employer’s failure to comply with a
recommendation to the Labour Cour t in terms of section 45.
39. Objections against compliance order. –(1) A designated employer may object to a
compliance order by making written representati ons to the Director-General within 21
days after receiving that order.
(2) If the employer shows good cause at any time, the Director-General may permit the
employer to object after the pe riod of 21 days has expired.
(3) After considering the designated employer’s representati ons and any other relevant
information, the Director-General–
a. may confirm, vary or cancel all or any part of the order to which the employer
objected; and
b. must specify the time period within which that employer must comply with any
part of the order that is confirmed or varied.

(4) The Director-General must, after making a decision in terms of subsection (3), and
within 60 days after receivi ng the employer’s representati ons, serve a copy of that
decision on that employer.
(5) A designated employer who receives an order of the Director-General must either–
a. comply with that order within the time period stated in it; or
b. appeal against that order to the La bour Court in terms of section 40.
(6) If a designated employer does not comply with an order of the Director-General, or
does not appeal against that order, the Director-General may apply to the Labour Court
for that order to be made an order of the Labour Court.
40. Appeal from compliance order.–(1) A designated employer may appeal to the
Labour Court against a compliance order of th e Director-General within 21 days after
receiving that order.
(2) The Labour Court may at any time pe rmit the employer to appeal after the 21-day
time limit has expired, if that employer shows go od cause for failing to appeal within that
time limit.
(3) If the designated employe r has appealed against an order of the Director-General,
that order is suspended until the final determination of–
a. the appeal by the Labour Court; or
b. any appeal against the decision of the Labour Court in that matter.
41. Register of designated employers .–(1) The Minister must keep a register of
designated employers that have subm itted the reports required by section 21.
(2) The register referred to in subsection (1) is a public document.
42. Assessment of compliance .–In determining whether a designated employer is
implementing employment equity in compliance with this Act, the Director-General or
any person or body applying this Act must, in ad dition to the factors stated in section 15,
take into account all of the following:
a. The extent to which suitably qualified people from and amongst the different
designated groups are equitably represen ted within each occupational category
and level in that employer’s workforce in relation to the–
i. demographic profile of the nationa l and regional economically active
population;
ii. pool of suitably qualified people from designated groups from which the
employer may reasonably be expected to promote or appoint employees;
iii. economic and financial factors releva nt to the sector in which the
employer operates;

iv. present and anticipated economic a nd financial circumstances of the
employer; and
v. the number of present and planned v acancies that exist in the various
categories and levels, and the employer’s labour turnover;
b. progress made in implementing employment equity by other designated
employers operating under comparable circumstances and within the same sector;
c. reasonable efforts made by a designated employer to implement its employment
equity plan;
d. the extent to which the designated empl oyer has made progress in eliminating
employment barriers that adversely aff ect people from designated groups; and
e. any other prescribed factor.
43. Review by Director-General .–(1) The Director-General may conduct a review to
determine whether an employer is complying with this Act.
(2) In order to conduct the revi ew the Director-General may–
a. request an employer to submit to the Di rector-General a copy of its current
analysis or employment equity plan;
b. request an employer to submit to th e Director-General any book, record,
correspondence, document or information that could reasonably be relevant to the
review of the employer’s compliance with this Act;
c. request a meeting with an employer to di scuss its employment equity plan, the
implementation of its plan and any matters related to its compliance with this Act;
or
d. request a meeting with any–
i. employee or trade union consulte d in terms of section 16;
ii. workplace forum; or
iii. other person who may have inform ation relevant to the review.
44. Outcome of Director-General’s review .–Subsequent to a review in terms of
section 43, the Director-General may–
a. approve a designated employer’s employment equity plan; or
b. make a recommendation to an employer, in writing, stating–
i. steps which the employer must take in connection with its employment
equity plan or the implementation of that plan, or in relation to its
compliance with any other provision of this Act; and
ii. the period within which those steps must be taken; and
iii. any other prescribed information.
45. Failure to comply with Director-General’s recommendation .–If an employer
fails to comply with a request made by the Di rector-General in terms of section 43 (2) or
a recommendation made by the Director-General in terms of section 44 (b), the Director-
General may refer the employer’s non- compliance to the Labour Court.

PART B
Legal proceedings
46. Conflict of proceedings.–(1) If a dispute has been referred to the CCMA by a
party in terms of Chapter II and the issue to which the dispute relates also forms the
subject of a referral to the Labour Court by the Director-General in terms of section 45,
the CCMA proceedings must be stayed until the Labour Court makes a decision on the
referral by the Director-General.
(2) If a dispute has been re ferred to the CCMA by a party in terms of Chapter II against
an employer being reviewed by the Director-G eneral in terms of section 43, there may
not be conciliation or adjudi cation in respect of the dispute until the review has been
completed and the employer has been informed of the outcome.
47. Consolidation of proceedings .–Disputes concerning contraventions of this Act by
the same employer may be consolidated.
48. Powers of commissioner in arbitration proceedings .–A commissioner of the
CCMA may, in any arbitration proceedings in terms of this Act, make any appropriate
arbitration award that gives eff ect to a provision of this Act.
49. Jurisdiction of Labour Court .–The Labour Court has exclusive jurisdiction to
determine any dispute about th e interpretation or application of this Act, except where
this Act provides otherwise.
50. Powers of Labour Court .–(1) Except where this Act provides otherwise, the
Labour Court may make any a ppropriate order including–
a. on application by the Director-General in terms of section 37 (6) or 39 (6) making
a compliance order an order of the Labour Court;
b. subject to the provisions of this Act, condoning the late filing of any document
with, or the late referral of a ny dispute to, the Labour Court;
c. directing the CCMA to conduct an investigation to assist the Court and to submit
a report to the Court;
d. awarding compensation in any circumstances contemplated in this Act;
e. awarding damages in any circumstan ces contemplated in this Act;
f. ordering compliance with any provision of this Act; including a request made by
the Director-General in terms of secti on 43 (2) or a recommendation made by the
Director-General in term s of section 44 (b);
g. imposing a fine in accordance with Sche dule 1 for a contravention of certain
provisions of this Act;
h. reviewing the performance or purported performance of any function provided for
in this Act or any act or omission of any person or body in terms of this Act on
any grounds that are permissible in law;

i. in an appeal under section 40, confirming, varying or setting aside all or part of an
order made by the Director-General in terms of section 39; and
j. dealing with any matter necessary or inci dental to performing its functions in
terms of this Act.
(2) If the Labour Court decide s that an employee has unfairly discriminated against, the
Court may make any appropriate order that is just and equitable in the circumstances,
including–
a. payment of compensation by the employer to that employee;
b. payment of damages by the em ployer to that employee;
c. an order directing the employer to take steps to prevent the same unfair
discrimination or a similar practice occurr ing in the future in respect of other
employees;
d. an order directing an employer, other than a designated employer, to comply with
Chapter III as if it were a designated employer;
e. an order directing the rem oval of the employer’s name from the register referred
to in section 41; or
f. the publication of the Court’s order.
(3) The Labour Court, in making any order, may take into account any delay on the part
of the party who seeks relief in proce ssing a dispute in terms of this Act.
(4) If the Labour Court declares that the medical testing of an employee as contemplated
in section 7 is justifiable, the court may make any order that it considers appropriate in
the circumstances, including impos ing conditions relating to–
a. the provision of counselling;
b. the maintenance of confidentiality;
c. the period during which the authorisa tion for any testing applies; and
d. the category or categories of jobs or employees in respect of which the
authorisation for te sting applies.
PART C
Protection of employee rights
51. Protection of employee rights .–(1) No person may discriminate against an
employee who exercises any right conferred by this Act.
(2) Without limiting the general protection conferred by subsection (1), no person may
threaten to do, or do any of the following:
a. Prevent an employee from exercising a ny right conferred by this Act or from
participating in any proceedings in terms of this Act; or
b. prejudice an employee because of past, present or anticipated–

i. disclosure of information that the empl oyee is lawfully entitled or required
to give to another person;
ii. exercise of any right co nferred by this Act; or
iii. participation in any proceedings in terms of this Act.
(3) No person may favour, or promise to favour, an employee in exchange for that
employee not exercising any right conferred by this Act or not participating in any
proceedings in terms of this Act.
(4) Nothing in this section precludes the pa rties to a dispute arising out of an alleged
breach of any right conferred by this Part, fr om concluding an agreement to settle the
dispute.
(5) For the purposes of this section “employee” includes a former employee or an
applicant for employment.
52. Procedure for disputes .–(1) If there is a dispute about the interpretation or
application of this Part, any party to the dispute may refer it in writing to the CCMA.
(2) The CCMA must attempt to resolve a dis pute referred to it in terms of this Part
through conciliation.
(3) If the dispute remains unresolved after c onciliation–
a. any party to the dispute may refer it to the Labour Court for adjudication; or
b. all the parties to the dispute may consen t to arbitration of the dispute by the
CCMA.
(4) In respect of a dispute in terms of this Part, the relevant provisions of Part C and D of
Chapter VII of the Labour Relations Act appl y, read with the changes required by the
context.
CHAPTER VI
GENERAL PROVISIONS
53. State contracts.–(1) Every employer that makes an offer to conclude an agreement
with any organ of state for the furnishing of s upplies or services to that organ of state or
for the hiring or letting of anything–
a. must–
i. if it is a designated employer, comply with Chapters II and III of this Act;
or
ii. if it is not a designated em ployer, comply with Chapter II of this Act; and
b. attach to that offer either–

i. a certificate in terms of subsection (2) which is conclusive evidence that
the employer complies with the relevant Chapters of this Act; or
ii. a declaration by the employer that it complies with the relevant Chapters
of this Act, which, when verified by the Director-General, is conclusive
evidence of compliance.
(2) An employer referred to in subsection (1) may request a certificate from the Minister
confirming its compliance with Chapter II, or Chapters II and III, as the case may be.
(3) A certificate issued in terms of subsection (2) is valid for 12 months from the date of
issue or until the next date on which the em ployer is obliged to submit a report in terms
of section 21, whicheve r period is the longer.
(4) A failure to comply with the relevant provisions of this Act is sufficient ground for
rejection of any offer to conclude an agr eement referred to in subsection (1) or for
cancellation of the agreement7.
54. Codes of good practice .–(1) The Minister may, on th e advice of the Commission–
a. issue any code of good practice8; and
b. change or replace any code of good practice.
(2) Any code of good practice, or any ch ange to, or replacement of, a code of good
practice must be published in the Gazette.
55. Regulations .–(1) The Minister may, by notice in the Gazette and on the advice of
the Commission, make any regulation regarding–
a. any matter that this Act requires or permits to be prescribed; and
b. any administrative or procedural matters that may be necessary or expedient to
achieve the proper and effective administration of this Act.
(2) The Minister must by notice in the Gazet te make a regulation providing for separate
and simplified forms and procedures in respect of the obligations created by sections 19,
20, 21, 25 and 26 for employers that employ 150 or fewer employees.
56. Delegations .–(1) The Minister may delegate any power conferred, or assign any
duty imposed, upon the Minister in terms of this Act, except the powers and duties
contemplated in sections 29 (1), (5) and (7), 53 (2), 54, 55, 59 (4) and 61 (4).
(2) A delegation or assignment must be in writing and may be subject to any conditions
or restrictions determined by the Minister.
(3) The Minister may at any time–
a. withdraw a delegation or assignment made in terms of subsection (1); and

b. withdraw or amend any decision made by a person exercising a power or
performing a duty delegate d or assigned in terms of subsection (1).
(4) The Director-General may delegate any power conferred, or assign any duty
imposed, upon the Director-General in term s of this Act, to any employee in the
Department.
(5) Subsections (2) and (3) apply with th e changes required by the context to any
delegation or assignment by the Dire ctor-General under subsection (4).
57. Temporary employment services.–(1) For purposes of Chapter III of this Act, a
person whose services have been procured for, or provided to, a client by a temporary
employment service is deemed to be the em ployee of that client, where that person’s
employment with the client is of indefinite duration or for a period of three months or
longer.
(2) Where a temporary employment service, on the express or implied instructions of a
client, commits an act of unfair discrimina tion, both the temporary employment service
and the client are jointly and severally liable.
58. Designation of organs of state .–The President must, within six months after the
commencement of this Act, and after consulta tion with the Minister responsible for the
Public Service and Administration, publis h a notice in the Gazette listing every
designated employer within any organ of state.
59. Breach of confidentiality .–(1) Any person who discloses any confidential
information acquired in the performance of a function in terms of this Act, commits an
offence.
(2) Subsection (1) does not a pply if the information–
a. is disclosed to enable a person to perform a function in terms of this Act; or
b. must be disclosed in terms of this Act, any other law or an order of court.
(3) A person convicted of an offence in term s of this section may be sentenced to a fine
not exceeding R10 000,00.
(4) The Minister may, with the concurrence of the Minister of Justice and by notice in
the Gazette, amend the maximum amount of the fi ne referred to in subsection (3) in order
to counter the effect of inflation.
60. Liability of employers .–(1) If it is alleged that an employee, while at work,
contravened a provision of this Act, or engaged in any conduct that, if engaged in by that
employee’s employer, would constitute a cont ravention of a provision of this Act, the
alleged conduct must immediately be br ought to the attention of the employer.

(2) The employer must consult all relevant parties and must take the necessary steps to
eliminate the alleged conduct and comply with the provisions of this Act.
(3) If the employer fails to take the necessary steps referred to in subsection (2), and it is
proved that the employee has contravened the relevant provision, the employer must be
deemed also to have contravened that provision.
(4) Despite subsection (3), an employer is not liable for the conduct of an employee if
that employer is able to prove that it did all that was reasonably practicable to ensure that
the employee would not act in contravention of this Act.
61. Obstruction, undue influence and fraud .–(1) No person may–
a. obstruct or attempt to impr operly influence any person who is exercising a power
or performing a function in terms of this Act; or
b. knowingly give false information in any document or information provided to the
Director-General or a labour insp ector in terms of this Act.
(2) No employer may knowingly take any measure to avoid becoming a designated
employer.
(3) A person who contravenes a provision of this section commits an offence and may be
sentenced to a fine not exceeding R10 000,00.
(4) The Minister may, with the concurrence of the Minister of Justice and by notice in
the Gazette, amend the maximum amount of the fi ne referred to in subsection (3) in order
to counter the effect of inflation.
62. This Act binds the State .–This Act binds the State.
63. Application of Act when in conflict with other laws .–If any conflict relating to a
matter dealt with in this Act arises between this Act and th e provisions of any other law
other than the Constitution or an Act of Pa rliament expressly amending this Act, the
provisions of this Act prevail.
64. Repeal of laws and transitional arrangements .–Each of the laws referred to in the
first two columns of Schedule 2 is repealed to the extent specified opposite that law in the
third column of that Schedule.
65. Short title and commencemen t.–(1) This Act is called the Employment Equity
Act, 1998.
(2) This Act takes effect on a date to be determined by th e President by proclamation in
the Gazette. The President may determine di fferent dates in respect of different
provisions of this Act.

(3) If, in terms of subsection (2), different dates are determined for particular provisions
of this Act–
a. Schedule 2 must take effect at the same time as section 6 (1) takes effect; and
b. a reference in a provision of this Act to a time when this Act took effect must be
construed as a reference to the time when that provision takes effect.
Schedule 1
MAXIMUM PERMISSIBLE FINES THAT MAY BE IMPOSED FOR
CONTRAVENING THIS ACT
This Schedule sets out the maximum fine that may be imposed in terms of this Act for the
contravention of certain provisions of this Act.
Previous Contravention Contravention of any Provision
of Sections 16, 19, 20, 21, 22
and 23
No previous contravention R500 000
A previous contravention in respect of the same
provision R600 000
A previous contravention within the previous 12
months or two previous contra ventions in respect of the
same provision within three years R700 000
Three previous contraventions in respect of the same
provision within three years R800 000
Four previous contraventions in respect of the same
provision within three years R900 000
Schedule 2
LAWS REPEALED
Number and year of
law Short title Extent of repeal
Act No. 66 of 1995 Labour Relations Act,
1995 Item 2 (1) (a), 2 (2) and 3 (4) (a) of
Schedule 7
Schedule 3
TRANSITIONAL ARRANGEMENTS
1. Definitions.–In this Schedule, unless the context indicates otherwise–

“pending ” means existing immediately before this Act came into operation; and
“repealed provisions of the Labour Relations Act ” means the provisions of the Labour
Relations Act repealed by Schedule 2.
2. Disputes arising befo re commencement of this Act .–Any dispute contemplated in
item (2) (1) (a) of Schedule 7 of the La bour Relations Act that arose before the
commencement of this Act, must be dealt with as if the repealed provisions of the Labour
Relations Act had not been repealed.
3. Courts .–(1) In any pending disput e contemplated in item (2) (1) (a) of Schedule 7 of
the Labour Relations Act in respect of whic h the Labour Court or the Labour Appeal
Court had jurisdiction and in respect of which proceedings had not been instituted before
the commencement of this Act, proceedings must be instituted in the Labour Court or
Labour Appeal Court (as the case may be) and de alt with as if the repealed provisions of
the Labour Relations Act had not been repealed.
(2) Any dispute contemplated in item (2) (1) (a) of Schedule 7 of the Labour Relations
Act in respect of which proceedings were pe nding in the Labour Court or Labour Appeal
Court must be proceeded with as if the re pealed provisions of the Labour Relations Act
had not been repealed.
(3) Any pending appeal before the Labour Appeal Court must be dealt with by the
Labour Appeal Court as if the repealed provisions of the Labour Relations Act had not
been repealed.
(4) When acting in terms of subitems (1) to (3), the Labour Court or Labour Appeal
Court may perform or exercise any function or power that it had in terms of the repealed
provisions of the Labour Relations Act.
Schedule 4
TURNOVER THRESHOLD APPLICABLE TO DESIGNATED EMPLOYERS
Sector or subsectors in accordance with the Standard Industrial
Classification Total annual
turnover
Agriculture
Mining and Quarrying
Manufacturing
Electricity, Gas and Water
Construction
Retail and Motor Trade and Repair Services
Wholesale Trade, Commercial Agents and Allied Services
Catering, Accommodation and other Trade
Transport, Storage and Communications R2,00 m
R7,50 m
R10,00 m
R10,00 m
R5,00 m
R15,00 m
R25,00 m
R5,00 m
R10,00 m

Finance and Business Services
Community, Special and Personal Services R10,00 m
R5,00 m