EMPLOYMENT EQUITY: Racial classification: Practical implementation.

Oct 13, 2025

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Dear employer

Amidst the complexities of the current employment equity regulations and targets, employers run the risk of blind compliance ruining their businesses.

Therefore, in order to mitigate these risks, NEASA advises the following steps of implementation.

Here is what all employers should know and consider:

The first step, in order to create a workplace profile illustrating the current racial, gender, and disability composition of the employer’s workforce, is the request to employees to complete the EEA1 form and in doing so, racially, and with regard to gender and disability, classify themselves.
However, the EE regulations place no legal obligation on employees to racially, or with regard to gender or disability, classify themselves on the form. Thus, employers may not take disciplinary action against employees who sign the form but refuse to self-classify.
It is suggested that employers use this template internal communication to inform their employees that there is no obligation for self-classification and no risk of disciplinary action.
In the event of employees refusing to classify themselves when completing the EEA1 form, or doing so ‘inaccurately’, the EE regulations require the employer to then classify its employees.
Although there are no criteria or guidelines on how to racially classify individuals, effectively rendering the performance of classification impossible, employers may use historical or current data in an effort to classify employees (previous EEA1 forms or any other information the employer can use).

NEASA therefore advises the following with regards to the remainder of EE planning and reporting:

Employers should use this EEA1 form which contains a condition that they cannot be held accountable for the classification performed on the form, as there are no criteria or guidelines according to which the classification can be done.
Employers should use this EEA form 12 (workforce profile analysis) which contains a condition that ‘historical and current data’ has been used to classify employees and that they cannot accept responsibility for the classification of employees.
Employers should set targets for years 1-4 in line with actual business realities - it is crucial that employers do not set unrealistic targets simply to try and comply with arbitrary 5-year targets.

It is imperative that owners and chief executives get involved in this process, along with specialised assistance, to ensure that their businesses do not run unnecessary risks in terms of setting unrealistic, unachievable and business-hostile targets. EE planning is not a tick-box exercise and business owners should not sign-off on plans presented to them without extreme circumspection.

Employers should use this EEA13 form (EE plan), which contains a condition that the 5-year targets are only inserted due to the obligatory nature of the EEA and the regulations, and that the targets cannot realistically be met.

Racial classification is the policy of the state and NEASA will continue to fight the cascading thereof unto employers.

However, employers who completely ignore the current regulations and targets, and refuse to report on EE, risk receiving enforcement notices, fines (of up to 10% of annual turnover), and not being able to obtain a compliance certificate. Without a compliance certificate, many employers may lose cardinal contracts and face being disqualified from contracting with the state.

NEASA strongly advises employers to, immediately after they have completed their online EE reporting, send this letter on their company letterhead to all of the following email addresses of the Department of Employment and Labour and also forward it to NEASA

( schalk@neasa.co.za):

precious.mdlokovana@labour.gov.za;

Welile.Dlwengu@labour.gov.za;

ntsoakiM@labour.gov.za;

Niresh.Singh@labour.gov.za;

Thembinkosi.Mkalipi@labour.gov.za

Contact NEASA for assistance by sending an email to schalk@neasa.co.za or call 012 332 5350.

For more information.

NEASA Media Department

media@neasa.co.za