On 28 August 2025, the Gauteng High Court handed down a judgment refusing an urgent application brought by the National Employers’ Association of South Africa (NEASA) and Sakeliga. The applicants had sought to halt the implementation of the sectoral numerical targets introduced by the Minister of Employment and Labour in terms of section 15A of the Employment Equity Act (EEA).
The Court made it clear that the relief sought could not be granted and that employers remain bound by the Minister’s April 2025 notice until a full judicial review is concluded.
The Court found that the Minister had already exercised his statutory powers when the targets were formally gazetted in April 2025. Because those powers had been lawfully exercised, an interdict was not competent, courts cannot reverse completed administrative acts. The judges noted that any potential prejudice will only materialise when employers implement their own numerical goals. At that stage, challenges may be raised by way of justification processes envisaged under the EEA, or by pursuing a substantive judicial review.
The Court also declined to suspend the Minister’s notice. It held that doing so would breach the constitutional principle of separation of powers, as the judiciary has no authority to suspend a lawful administrative act. Section 172(1)(b) of the Constitution, which allows courts to make just and equitable orders when declaring invalidity, was found to be inapplicable in the absence of a declaration of invalidity.
On the issue of consultation, the Court accepted that extensive engagement with stakeholders had taken place from as early as 2019. Draft targets were published in 2023 and 2024, with a 30-day comment period in each round. The Court rejected the argument that a further round of publication was required before the April 2025 notice.
Finally, the Court dismissed claims that the targets were arbitrary or discriminatory. It stressed that the Minister had relied on Statistics South Africa data and the advice of the Commission for Employment Equity (CEE). Importantly, the judgment distinguished between sectoral targets issued by the Minister and the individual goals set by employers. While the Minister sets broad numerical benchmarks, employers are permitted under section 42(4) of the EEA to deviate from those targets where they can justify non-compliance on reasonable grounds.
For employers, the implications are significant. From 1 September 2025, designated employers must align their employment equity plans with the new regulations. Non-compliance may affect the issuing of compliance certificates under section 53 of the EEA, which are essential for companies doing business with the state.
That said, flexibility remains in the system. Employers who can show that strict adherence to the numerical targets would lead to unfair discrimination, or that compliance is otherwise impractical, will have an opportunity to motivate for deviations.
This ruling addresses only the urgent interim relief. A full review of the Minister’s decision is still pending. Until then, businesses should proceed on the basis that the April 2025 targets are valid and enforceable. Proactive risk management is essential: companies should review their equity plans, consult internally, and prepare to justify any deviations from the sectoral targets if challenged.
At Mayet & Associates, we advise employers on compliance with the Employment Equity Act, drafting equity plans, and managing risks arising from sectoral numerical targets. For strategic guidance on navigating these new obligations, contact our team today.
