Democratic Alliance (DA)
By Nkosana Khumalo
The Democratic Alliance (DA) is once again taking the government to court, this time to challenge the Employment Equity Act. The party’s labour and employment spokesperson, Michael Bagraim, confirmed that the DA will head to the North Gauteng High Court next week, on 6 May 2025, to contest Section 15A of the Act.
The DA claims this section grants the Minister of Employment and Labour unchecked power to impose “rigid quotas” based on race, sex, and disability, which they argue harms businesses, deters investment, and violates constitutional rights. This legal move reignites a heated debate about employment equity in South Africa, spotlighting the tension between transformation goals and economic realities.
DA’s Case Against Section 15A
The DA’s challenge zeroes in on Section 15A, introduced through the Employment Equity Amendment Act of 2023. Bagraim has labelled this section a “radical and harmful departure” from previous laws, accusing it of forcing companies to adopt strict racial targets. He said, “We don’t have a race register anymore in this country and it’s a good thing. Now the Department of Employment and Labour is trying to force people to go back and register themselves in terms of race. It’s destroying businesses, it’s destroying investment and has not worked as legislation for 25 years.” The party argues that these “rigid quotas” undo progress toward a non-racial society and impose impractical demands on employers.
The Employment Equity Act aims to correct historical workplace inequalities by setting equity targets for sectors and regions. Yet, the DA insists these targets function as binding quotas, not flexible guidelines. They warn that such rules could exclude skilled workers—especially coloured and Indian employees—in certain areas, potentially costing up to 600,000 jobs. The party seeks to have Section 15A struck down as unconstitutional, claiming it breaches equality principles and fosters unfair discrimination.
Compliance Struggles and Government’s Stance
Recent data underscores the Act’s challenges. In 2024, the Department of Employment and Labour found that only 34% of inspected companies complied with the Act’s requirements. This low compliance rate has fuelled the DA’s argument that the legislation is unworkable. Businesses, particularly small and medium enterprises, have voiced concerns over the administrative burden of tracking and reporting employee demographics by race—a practice some liken to apartheid-era classification.
The government, however, defends the Act as a vital tool for transformation. It argues that equity targets address deep-seated disparities rooted in South Africa’s past. The Department has also introduced measures to ease compliance, such as exempting firms with fewer than 50 employees from submitting detailed equity reports since April 2024. Despite this, critics like the DA say these tweaks fail to fix the Act’s core flaws.
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