The National Employers’ Association of South Africa (Neasa) and Sakeliga have formally notified the Minister of Employment and Labour, Dr Nomakhosazana Meth, of their intention to launch an urgent interdict against newly published Employment Equity (EE) regulations. These regulations, released on 15 April 2025 under the amended Employment Equity Act, require companies with 50 or more employees to meet strict demographic targets based on race, gender, and disability. Non-compliance could lead to fines of up to 10% of a company’s turnover.

The contested regulations include General Administrative Regulations and Sector Numerical EE Targets, which compel businesses to classify themselves within 18 economic sectors and adjust their workforce composition accordingly. These targets aim to align occupational representation with the country’s demographic makeup. The 2025 CEE Annual Report shows stark disparities at Top and Senior Management levels, with white and Indian populations significantly over-represented, while African and Coloured populations remain under-represented.

Neasa and Sakeliga argue the regulations are unconstitutional, unworkable, and risk causing major economic disruption, legal uncertainty, and job losses. They contend that enforcing rigid demographic quotas will misallocate resources and undermine business viability. The associations have demanded that the minister suspend or withdraw the regulations by 18 June 2025 or face court action.

The move sets the stage for a legal battle over transformation policies in South Africa’s workforce, spotlighting the tension between promoting equitable representation and maintaining economic and constitutional stability. The outcome may have significant implications for both public and private sector employment practices.