World of HR: New law in South Africa aims to reduce racial inequity

South Africa, where racial inequality remains a persistent problem, recently signed the Employment Equity Amendment Act (EEAA) into law. While the law aims to increase racial diversity in the workplace, it’s receiving pushback from some business leaders.

Where in the world? The legislation, signed by South Africa’s President Cyril Ramaphosa in April, allows the country’s employment minister to set racial equity targets based on region, according to a government website. The law also stipulates that businesses must pay salaries in accordance with job descriptions, Eyewitness News reported. In addition, workers now have clear guidelines on how to report workplace discrimination under the law, which applies to companies with more than 50 employees.

The EEAA is an update to the Employment Equity Act of 1998, which allowed employers to set their own racial diversity goals, and prohibited discrimination based on attributes such as race, gender, and age.

However, the law is already under fire by some, including Solidarity, a trade union, whose leaders believe that the new legislation is unconstitutional, BusinessTech reports, while some political leaders argue it furthers a racial divide.

Satellite view. US-based employers with workers based in South Africa may want to familiarize themselves with the new requirements before they go into effect on September 1, 2023, according to SHRM. If a company has employees in South Africa, they must provide documentation from the employment and labor department confirming that the company is complying with the law.—KP