On 28 August 2025, the High Court in Pretoria dismissed an urgent application by two employer groups – NEASA and Sakeliga – who sought to block the implementation of South Africa’s new sectoral employment equity targets.
This ruling confirms what many anticipated: from 1 September 2025, designated employers will need to align their EE Plans with the sectoral targets published earlier this year. While the broader judicial review is still pending, employers cannot afford to wait and see.
For many businesses, this may feel like a turning point. The deadlines are real, the expectations are high, and the path to compliance may feel uncertain. But it is also an opportunity to bring clarity and structure to your transformation journey.
What the Court Decided on Employment Equity Targets
Judge Moshoana made several key findings:
- Consultation was sufficient. Draft regulations were published in 2023 and 2024, with engagements dating back to 2019.
- Targets remain binding. Once the Minister lawfully exercised the power to set sectoral targets, those targets remain valid unless set aside by a full judicial review in the future. Employers cannot ignore them.
- No irreparable harm proven. The applicants argued that the targets would lead to dismissals or discrimination. The court held there was no evidence of unlawful or irreparable harm. Employers have mechanisms under the Act to justify non-compliance if a target would unfairly disadvantage them.
- Separation of powers upheld. Courts cannot suspend or undo a lawful exercise of government power simply for convenience. A judicial review, not an urgent interdict, is the proper remedy.
The urgent application was dismissed, and each party carried its own costs.
What This Means for Employers
From 1 September 2025:
- Designated employers (50 or more employees) must comply with the new sectoral targets from 1 September 2025.
- Non-designated employers are not exempt: they must still declare their status through the Department of Labour’s system and secure a compliance certificate.
- Flexibility exists where targets cannot realistically be achieved, but justifications must be properly documented and defensible.
- Compliance is the default. Unless or until a higher court rules otherwise, the published targets apply.
Our Guidance for Employers
We know that many businesses are feeling the pressure right now. Questions around “how strict will this be,” “what if we can’t meet the targets,” or “what happens to our B-BBEE status” are common – and valid.
Our role is to simplify this process. That means:
- Helping you interpret sector targets in the context of your business.
- Building your EE Plan so it is both compliant and practical.
- Guiding you on reporting, declarations, and how EE compliance connects directly to your B-BBEE strategy.
- Supporting you in preparing justifiable reasons where targets cannot be met, so that compliance and certification are not at risk.
In Closing
The Court’s ruling has removed any uncertainty about timing: the new sectoral targets are now in force. Both designated and non-designated employers have obligations that cannot be ignored.
But this does not have to be overwhelming. With the right support, compliance can be managed in a structured and sustainable way. Our Advisors are here to guide you, answer questions, and partner with you in navigating these reforms.
If you need clarity or support in updating your Employment Equity Plan or preparing for 2025 reporting, please reach out to our team.