BEE123 - Human Resources

Rely on BEE123 to support your B-BBEE and EE compliance, driving meaningful impact in economic transformation. The recent amendments to South Africa’s Employment Equity (EE) Act have significantly overhauled compliance requirements, making EE a strategic business priority rather than just an HR function. Unlike B-BBEE, EE compliance is legally enforced, with severe penalties ranging from 2% to 10% of annual turnover for non-compliance. Companies cannot afford to overlook it, as failure to comply risks fines, audits, and exclusion from public sector opportunities.

A key change is the introduction of mandatory sector targets set by the Department of Employment and Labour. These targets prescribe workforce composition to be achieved by 2030, removing employer discretion in setting their own goals. In addition, all designated employers must submit a new five-year Employment Equity Plan (EEA13) by 1 September 2025, following a fixed format.

Annual reporting obligations have been strengthened, requiring EEA2 and EEA4 submissions to align with sector targets and demonstrate real progress. Executives, not just HR, now carry direct accountability, with EE plans requiring C-suite approval and oversight. Furthermore, without a valid EE Certificate of Compliance, companies cannot engage in business with public sector entities.

To maintain compliance, organisations must ensure live alignment, meaning workforce decisions—from hiring to promotions—must correspond with the approved EE plan. Deviations require justifiable evidence, as the Department of Labour has expanded enforcement resources and inspection activities, heightening audit risk.

To address these complexities, EE123, a comprehensive Employment Equity Management System, supports businesses by automating plan generation, tracking progress, generating required reports (EEA2, EEA4, EEA12, EEA13), and maintaining audit-ready records. It provides interactive dashboards, deviation logging, document repositories, and secure cloud-based access, enabling executives to mitigate compliance risks and stay updated on legislative developments.

In essence, the amendments elevate EE compliance to a board-level responsibility, demanding rigorous planning, monitoring, and executive accountability to avoid penalties and maintain eligibility for state contracts.

Integrates with

Sage 300 People | Dynamics Payroll