The Department of Employment and Labour has confirmed that the 2026 employment-equity reporting period will be the first assessment year in which reports from designated employers are measured against their employment-equity plans.
Who is a designated employer?
For Chapter III reporting purposes, an employer with more than 50 employees is a designated employer. An employer that becomes designated during the year must report for that reporting cycle. Employers with fewer than 50 employees are generally no longer designated solely by reference to turnover, following the changes effective from 28 November 2024.
An employer may nevertheless have additional obligations arising from voluntary designation, contractual requirements or participation in State procurement. Its status and reporting obligations should therefore be confirmed from its actual circumstances.
The employment-equity plan is central
Section 20 requires a designated employer to prepare and implement an employment-equity plan. The Department has emphasised that submitted reports will be assessed for quality and consistency with the employer's plan rather than being treated as a routine annual submission.
Employers designated on or before 1 April 2026 are expected to have a plan covering the period ending 31 August 2030. The plan should include the employer's numerical goals, annual targets, affirmative-action measures, implementation responsibilities and monitoring processes.
Management responsibility and sector targets
A senior manager should be assigned responsibility for monitoring and implementing the plan. The reporting data should be supported by payroll and workforce records, and the employer should be able to explain differences between the plan, previous submissions and the current workforce profile.
Sectoral numerical targets are relevant to the assessment process. They may also affect access to State contracts where an employment-equity certificate is required. Employers should avoid copying generic targets or plans that do not reflect their own workforce and operational circumstances.
Employment-equity compliance certificates
The Department has encouraged designated employers to apply for a compliance certificate after submitting the required report. The certificate is valid for one year. Employers that are not designated should not assume that deregistration is always appropriate, because a certificate or confirmation of status may still be relevant for State contracting and other compliance processes.
Practical actions
- Confirm whether the employer is designated for the 2026 reporting period.
- Review the employment-equity plan, its period and the annual targets.
- Confirm that a senior manager has been assigned responsibility and has access to reliable workforce data.
- Reconcile occupational levels, race, gender, disability and remuneration information with payroll and HR records.
- Document reasons for material variances and the corrective measures planned.
- Prepare the report and certificate application from verified records rather than prior-year templates.
Official sources: Department of Employment and Labour, 2026 reporting period will be first year of assessment, published 4 August 2026; and Department appeals to employers to exercise diligence in reporting, published 6 August 2026.
This update reflects the Department's published guidance on the stated dates. An employer's obligations depend on its employee numbers, designation status, sector, plan and procurement requirements.