By: Jacques Maritz - National Sales & Service Manager at Quyn International Outsourcing

South Africa’s labour landscape is entering a new phase of accountability. The Employment Equity Amendment Act of 2025 introduces tougher compliance requirements and sector-specific targets that demand more than just policy awareness - they call for operational transformation. Employers must now rethink how they hire, promote, and report, while proving measurable progress toward equity. 

As focus shifts, Temporary Employment Services (TES) providers are becoming the bridge between compliance and capability, helping businesses meet their obligations with the agility and expertise the legislation now requires. 

Employment equity - what’s changed in 2025?
One of the biggest updates is the redefinition of what makes a company a “designated employer.” Previously, companies with more than 50 employees or meeting a turnover threshold were designated, but the new rules remove the turnover factor. Now, only companies with more than 50 employees have a duty to comply. This shift lightens the regulatory load for smaller businesses but places a heavier responsibility on medium and large employers to actively drive equity in their workplaces.

At the same time, the introduction of sector-specific numerical targets is a massive shift in how equity is measured. In the past, benchmarks were national or provincial but now, employers must measure progress against targets tailored to their industry and the specific roles within it. This approach ensures that transformation is meaningful and aligned with the realities of different sectors, rather than a one-size-fits-all expectation. It also forces businesses to understand their workforce deeply, assessing where they are and where they need to go to meet these targets.

Putting policy into practice - five-year plans and compliance certificates
From 1 September 2025, designated employers must prepare five-year employment equity plans. These plans must align with sector-specific targets and be submitted annually using the official reporting forms. Employers who fall short of their goals must provide a clear explanation.

Government contracts have become a powerful lever for compliance. To bid for work, companies now need a Certificate of Compliance, showing that they have submitted their EE reports on time, made measurable progress toward sector targets, complied with the National Minimum Wage Act, and avoided unfair discrimination findings from the CCMA over the past 12 months. In effect, this makes equitable practices a gateway to business opportunities: companies cannot afford to ignore compliance if they want to compete for government work.

For employers, this means employment equity must level up beyond annual reporting and become a central part of workforce strategy. Recruitment, promotions, and staffing decisions all need to be aligned with transformation goals. Companies that treat equity as a check-box exercise risk penalties, reputational damage, and missed opportunities.

TES providers and payroll - making compliance work 
One of the challenges for businesses when it comes to change is turning legal obligations into practical, day-to-day operations. TES providers play a key role here, expanding recruitment reach, helping to find candidates from underrepresented groups and build pipelines that meet sector-specific targets. For temporary or short-term roles, TES providers manage placements so that reporting requirements are met, ensuring these employees are accurately included in workforce statistics when necessary.

Here, payroll systems are equally important. TES providers have built modern platforms to track workforce data, categorise employees according to compliance requirements, and generate accurate reports. They make it easier to submit the information needed for annual EE reporting and maintain audit-ready records by embedding compliance into operations, turning legislation from a potential burden into a practical framework for action.

The updated legislation also expands the definition of people with disabilities to include long-term or recurring physical, mental, intellectual, or sensory impairments that limit entry or advancement in the workplace. Businesses must be intentional about creating inclusive environments and opportunities for such individuals. TES providers and payroll systems support this by providing data, insight, and access to talent pools that may otherwise be overlooked.

Weaving equity into the fabric of everyday operations
Employment equity is now part of the bottom line. Companies can no longer treat it as an isolated HR function; it must be woven into how people are hired, managed, and developed. Those that do will find compliance and competitiveness pulling in the same direction. 

With the 2025 Employment Equity Amendment Act, transformation has become a shared responsibility - not just for HR, but across operations. Partnering with TES providers gives businesses the compliance structure and agility they need to keep pace with shifting regulations and workforce demands. 

Equity, when lived daily, becomes the engine of sustainable growth. Businesses that integrate real transformation into their DNA will shape not only their own success but the future of South Africa’s workforce.