Amended Code of Good Practice. South Africa’s Department of Employment and Labour has published a draft Revised Code of Good Practice on the Preparation and Implementation of Employment Equity (EE) Plans for public comment. Released on 24 July 2026, the draft is designed to update the existing 2017 Code so that it aligns with the latest Employment Equity legislation, including the Employment Equity Amendment Act, 2022 and the Employment Equity Regulations, 2025.
Employers, labour organisations, and members of the public have until 22 September 2026 to submit written comments before the revised Code is finalized.
Why the Revised Code Matters
The updated Code provides practical guidance for designated employers, which are businesses and organisations employing 50 or more employees. It explains how employers should prepare, implement, monitor, and review their Employment Equity Plans while complying with current legal requirements.
Although many of the principles remain similar to the 2017 version, the revised document introduces several important updates aimed at improving accountability, consultation, and workforce planning.
Immediate Obligation for Designated Employers
One of the key clarifications in the draft Code is that employers must begin preparing an Employment Equity Plan as soon as they become designated employers. This removes uncertainty about when compliance responsibilities begin and encourages organisations to establish their employment equity processes without delay.
Stronger Focus on Employee Consultation
Meaningful consultation remains a central requirement of Employment Equity compliance. Employers must engage with representatives from different occupational levels and ensure that both designated and non-designated groups are fairly represented during the consultation process.
The revised Code also places greater emphasis on Employment Equity Committees. It recommends that employers formally define how these committees are established, how members are selected, and how the committees will operate. In addition, committee members should receive appropriate training so they clearly understand their responsibilities and can participate effectively in the implementation of Employment Equity Plans.
Enhanced Workforce Analysis
Another significant change is the broader approach to workforce analysis. Previously, employers mainly focused on identifying areas where designated groups were under-represented. Under the revised Code, employers are expected to evaluate both under-representation and over-representation across occupational levels.
The analysis should also consider sector-specific employment equity targets, the Economically Active Population (EAP), workforce demographics, recruitment patterns, promotions, employee turnover, and the availability of suitably qualified candidates.
This broader assessment is intended to help employers develop more balanced and realistic employment equity strategies.
Sectoral Employment Equity Targets
The revised Code reflects the introduction of sector-specific numerical targets under the amended Employment Equity Act. Employers are expected to incorporate these targets into their Employment Equity Plans while also considering national and regional demographic data.
Where an organisation already exceeds a sector target, it should continue working toward broader demographic representation rather than maintaining long-term over-representation. However, the Code also recognises that employers should not create unfair barriers to employment for any group and may rely on natural staff turnover and planned recruitment to achieve better workforce balance over time.
Improved Monitoring and Accountability
The draft Code strengthens monitoring requirements by assigning responsibility for Employment Equity implementation to senior management. Employers are expected to regularly review progress and discuss implementation reports with their Employment Equity Committees.
This approach aims to improve transparency and ensure Employment Equity remains an ongoing organisational priority rather than a once-a-year compliance exercise.
Updated Reporting Requirements
Reporting obligations have also been aligned with the 2025 Employment Equity Regulations. Employers must submit compliant annual Employment Equity reports in order to qualify for a Certificate of Compliance.
The revised Code also introduces additional reporting requirements for organs of state, ensuring Employment Equity reports are submitted in the prescribed format and presented through the appropriate government channels.
Preparing for the Changes
Although many organisations already follow similar practices, the revised Code encourages employers to review their existing Employment Equity policies and procedures. Organisations should ensure that Employment Equity Committees are formally established, committee members are trained, workforce analyses are comprehensive, and Employment Equity Plans reflect current legal requirements and sector-specific targets.
Taking proactive steps before the revised Code becomes final will help employers strengthen compliance and reduce the risk of regulatory challenges.
Conclusion
The draft Revised Code of Good Practice represents an important step in modernising South Africa’s Employment Equity framework. By aligning guidance with recent legislative reforms, it provides employers with clearer direction for developing effective Employment Equity Plans and promoting fair workplace representation. With the public consultation period open until 22 September 2026, stakeholders have an opportunity to contribute before the revised Code is officially implemented.
