(Foto: RDNE Stock project)
Local and international companies doing business in South Africa must brace themselves for several years of strong resistance to the state’s racially restrictive hiring quotas, amid ongoing litigation by Sakeliga and employers’ organization Neasa.
This comes after the Court of Appeal sided with the Constitutional Court in refusing leave to appeal against a previous court ruling that did not grant an urgent interdict against the new quota system. As a result, the implementation of the new provisions was not stopped before September 2025.
According to Sakeliga, the court decisions exacerbate the damage to companies and employees. “This failure of the courts exacerbates the harm to companies and employees of all racial groups and highlights the need for resistance by businesses faced with impossible quota requirements,” says Sakeliga.
Second case continues
However, Sakeliga and Neasa are continuing with the second part of their main court case, which aims to have the amendments to the Equal Employment Act and the regulations prescribing the quotas set aside.
In the meantime, Sakeliga warns that companies may face serious consequences if the quotas are strictly applied.
“The quotas force employers to make hiring and promotion decisions based on race, which undermines productivity, erodes institutional knowledge and trust, and drives skilled workers out of companies and out of the country,” says Sakeliga.
According to the organization, the policy could seriously harm specialized sectors such as mining, engineering, financial services and technology in particular because the quotas do not reflect the available workforce and cannot be achieved without harming operations.
Sakeliga says the law could, if strictly applied, cause serious damage to South Africa’s private sector.
Nomakhosazana Meth, the Minister of Employment and Labour. (Photo: Nomakhosazana Meth / X).
“The Employment Equity Act, if not successfully challenged and strictly enforced, will deeply damage South Africa’s private sector in the attempt to restructure it along racial lines determined by the state.
“It will drive away investment, destroy jobs and erode the productive capacity that sustains communities,” says Sakeliga.
The amendments to the Employment Equity Act set sector-specific targets for race and gender representation in businesses with 50 or more employees. Businesses must adapt their staffing structures over time to match national demographics, otherwise they may not be able to get government contracts and may face fines or other penalties. Sakeliga and Neasa argue that these quotas are unworkable, can harm businesses and discourage job creation and investment.