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The New Employment Equity Cycle: What It Means for Reporting and Succession Planning

South Africa’s Employment Equity (EE) landscape is entering a new era with the 2025–2030 Employment Equity Plan Cycle, bringing significant changes that will impact how organisations approach compliance, reporting, and talent development. These changes are not just administrative; they require a strategic shift in how businesses plan for the future.

1. The New Employment Equity Plan Cycle: A Five-Year Framework

The new Employment Equity reporting period, which runs from September 1, 2025, to August 31, 2030, introduces a longer-term planning horizon for employers.

Summary of Key Updates:

  • 2025 is a Baseline Year
    Employers will not be assessed for compliance with sector targets in 2025, but they must align their plans with the new requirements.
  • Annual Assessments from 2026
    Progress will be measured annually against the five-year Employment Equity Plan, making consistent implementation critical.
  • Always-On EE Portal
    The Employment Equity online portal will remain open year-round, allowing employers to access their Certificate of Compliance (CoC) at any time.

2. No Deregistration Required

Some employers have asked whether they need to deregister under the new designation criteria. The answer is no. Instead:

  • All employers on the Employment Equity database have received an activation link in September 2025.
  • This link allows employers to declare whether they are designated (50+ employees) or non-designated under the new rules.
  • This self-declaration will help the Department of Employment and Labour (DEL) update its database and streamline compliance.

3. What Employers Should Do Now

To prepare for the new cycle, employers should:

  • Review your designation status under the updated criteria.
  • Awaited the activation link in September 2025 and declared your status.

If designated:

  • Familiarise yourself with sector targets for your industry.
  • Align your Employment Equity Plan with the five-year requirements.
  • Ensure your workforce profile data is accurate.
  • Engage your Employment Equity Committee for consultations and reporting.

4. Impact on Reporting

The new Employment Equity framework introduces stricter reporting obligations:

  • Mandatory Sector Targets
    Designated employers must align their Employment Equity plans with gazetted five-year numerical targets for 18 economic sectors, based on national or provincial EAP data.
  • Annual Reporting for All Designated Employers
    Even those with fewer than 150 employees must now report annually.
  • Updated Forms and Systems
    Employers must use the new EEA2 and EEA4 forms, along with planning templates (EEA12 and EEA13), via the online system.
  • Certificate of Compliance (CoC)
    A CoC is now required for doing business with the State. It will only be issued if:
    • Sector targets are met (or valid justifications are provided).
    • All reports are submitted.
    • There are no recent findings of unfair discrimination or wage violations.

5. Impact on Succession Planning

The EE amendments make succession planning a compliance-critical activity:

  • Strategic Integration
    Succession plans must actively address numerical targets and ensure a pipeline of diverse, qualified talent for leadership roles.
  • Development and Promotion
    Employers must identify high-potential employees from underrepresented groups and provide targeted training to fast-track them into leadership.
  • Data-Driven Decisions
    Workforce analytics and Employment Equity analysis (EEA12) will guide gap identification and progress tracking.
  • Accountability at the Top
    Senior management performance should be tied to transformation outcomes, embedding Employment Equity into the core business strategy.

6. The Strategic Way Forward

To move beyond compliance and achieve sustainable transformation, employers should:

  • Workforce Planning: Conduct skills audits and succession planning to identify gaps.
  • Upskilling and Training: Implement development programmes for high-potential candidates.
  • Inclusive Recruitment: Expand recruitment to untapped talent pools, including people with disabilities and rural communities.
  • Partnerships and Pipelines: Collaborate with schools, universities, and training providers to build future talent pipelines.

The new Employment Equity cycle is more than a regulatory requirement; it’s an opportunity to build inclusive, future-ready organisations. By embedding Employment Equity principles into reporting and succession planning, employers can ensure compliance, avoid penalties, and contribute to a more equitable economy.

Summit is here to support you.
If you have any questions, need guidance on interpreting the regulations, or require assistance in developing your Employment Equity Plan, our team is ready to help. We offer expert advice, practical tools, and tailored support to ensure your organisation is fully prepared for compliance and transformation.

Book a consultancy meeting with us todayfor Summit to show you how we can assist in this new landscape with confidence.