The number of entities pushing back against the new BEE employment laws is growing fast, as another legal challenge ensues.
Business groups in South Africa are starting to organise opposition to South Africa’s newly enacted employment equity laws – while opposition party, the DA, gears up to launch a High Court challenge to the laws.
Designated businesses are all businesses in South Africa that employ more than 50 people. The laws apply to all designated businesses – even those with no intention of doing business with the state. Despite this, the laws were met with immediate backlash, and the department has already published the sectoral targets for public comment – drawing criticism from legal experts who warned that the targets may have jumped the gun.
At heart of the issue with the laws is that, while they are being touted as targets, they could be interpreted or positioned as racial quotas. The department has denied this, saying the targets are flexible.“In our submission, the DA will demonstrate that the term ‘numerical targets’ used by the Act is a misnomer and that, in reality, the Act sets rigid racial quotas for four different job levels across 18 economic sectors,” the party said in a statement on Tuesday .
The opposition party noted that these laws violate the constitutional rights to equality, freedom of trade, occupation and profession, as well as the original Employment Equity Act’s own prohibition on quotas.
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