Another loss over quotas court challenge as SCA rejects appeal

2026-03-23 - 12:21

Employment and Labour Minister Nomakhosazana Meth has welcomed a ruling by the Supreme Court of Appeal (SCA), which dismissed an application for leave to appeal brought by Sakeliga and the National Employers’ Association of South Africa (Neasa) against the Employment Equity Amendment Act. The two organisations had sought to overturn an earlier judgment by the High Court in Pretoria. The high court in August 2025 dismissed their urgent bid to interdict the implementation of five-year sectoral numerical employment equity targets introduced under the amended law. ALSO READ: B-BBEE has failed to uplift blacks, as white employees still outnumber them While the latest ruling deals with part A of the litigation, the broader legal challenge is not yet concluded. In part B, Sakeliga and Neasa are seeking to have Section 15A of the Act, along with its accompanying regulations, reviewed and set aside. That matter remains pending before the courts. Employment equity targets challenged The case stems from regulations issued in April 2025 by Meth, shortly after the EEAA came into law months earlier. These regulations introduced sector-specific numerical targets aimed at increasing representation of “designated groups” – including black people, women and people with disabilities – across 18 industries, among them agriculture, mining, transport and construction. Under the framework, companies with 50 or more employees must align their workforce to better reflect South Africa’s demographics by 2030 or face penalties. READ MORE: Here is how many of the top 30 asset management firms in SA are black-owned The first reporting cycle under the new system ran from 1 September 2025 to 15 January 2026. According to the department of employment and labour, Sakeliga and Neasea first tried to appeal in the high court, but the application heard on 16 October was dismissed. The court found no strong reason to believe another court would rule differently. It also ruled it was too early to grant leave to appeal, given that part B of the case is still to be finalised. SCA rejects appeal Undeterred, the applicants escalated the matter to the SCA. The appellate court dismissed the application with costs on 13 March. The SCA in its ruling held that there was no reasonable prospect of success and no other compelling justification for hearing the appeal. The department has since welcomed the judgment, describing it as “a big win”. “It vindicates our position that there is nothing sinister about the EE amendments and the five-year sector numerical EE targets,” the statement reads. The Minister welcomes the Supreme Court of Appeal Order in case between Neasa & another against Minister of Employment and Labour & others regarding the Employment Equity Regulations and 5 year sector EE Targets https://t.co/ZdkjgHBWL3#Yazini #GovZAUpdates #HumanRightsMonth2026 pic.twitter.com/Rv07u2j0La — Department of Employment and Labour (@deptoflabour) March 23, 2026 The department further emphasised that in the absence of any court interdict, the regulations remain in force. As such, all designated employers are required to comply fully with the provisions of the amended Act and its associated targets. NOW READ: Proposed labour law changes could grant parental leave after miscarriage or stillbirth