Designated Employer

A 'designated employer' refers to an employer who employs 50 or more employees, or an employer who employs fewer than 50 employees but has a total annual turnover that is equal to or above the applicable annual turnover of a small business as specified in Schedule 4 of the Act. This definition also encompasses municipalities and organs of State. Designated employers are subject to the affirmative action provisions of Chapter III of the Employment Equity Act.

As of 1 January 2025, a 'designated employer' is primarily defined as an employer who employs 50 or more employees. This also includes municipalities and most organs of state, with specific exclusions for national security services. These employers are subject to the affirmative action provisions of the Employment Equity Act, requiring them to develop and implement employment equity plans and submit annual reports.

Under the Employment Equity Amendment Act No. 4 of 2022 and the Employment Equity Regulations 2025, a 'designated employer' is defined as an employer who employs 50 or more employees. This definition significantly streamlines previous criteria by removing the annual turnover threshold for smaller employers. Organs of state are also considered designated employers, irrespective of the number of employees. These employers are mandated to implement affirmative action measures to achieve employment equity and are subject to specific reporting and compliance obligations.