Who Is a Designated Employer in 2025?
Find out whether your business must comply with the Employment Equity Act, what the 50-employee threshold means after the 2025 amendments, and which reports you must submit.
By AutoEqui
What is a designated employer?
A designated employer is an employer that must comply with the affirmative-action provisions of South Africa's Employment Equity Act, including preparing an EE plan and submitting EEA2 and EEA4 reports.
Since the 2025 amendments, the definition is simpler: you are a designated employer if you employ 50 or more employees, regardless of annual turnover. The old turnover threshold for smaller employers has fallen away.
What this means for you
If you employ 50 or more people, you must:
- Consult with your workforce and establish an EE committee
- Conduct a workforce analysis (EEA12)
- Prepare an Employment Equity plan aligned to the 2025–2030 cycle
- Set numerical targets per occupational level
- Submit EEA2 and EEA4 reports each reporting cycle
What if you have fewer than 50 employees?
You are not legally compelled to comply, but you may opt in voluntarily. Many smaller employers do so to qualify for state contracts, which require a valid EE compliance certificate.
Tip: Headcount includes fixed-term and temporary employees who meet the definition of an employee. Assess labour-broker placements carefully — they often count toward the client's headcount.
Ready to check where you stand? Start a free demo and AutoEqui will guide you through your obligations.