Cape town: Employment and Labour Minister Nomakhosazana Meth says only 9% of employers inspected by the Department of Employment and Labour were found compliant with employment equity legislation during the 2025/26 financial year. Delivering the Department of Employment and Labour's Budget Vote 31 in Parliament on Tuesday, Meth said government is intensifying workplace inspections and labour law reforms to improve compliance and worker protection.
According to South African Government News Agency, the Labour Laws Amendment Bill proposes critical reforms to the Labour Relations Act, Basic Conditions of Employment Act, National Minimum Wage Act, and Employment Equity Act through the National Economic Development and Labour Council (Nedlac) process. These changes aim to strengthen worker protection, improve dispute resolution, reduce unnecessary compliance burdens for small businesses, and align legislation with Constitutional Court and Labour Court judgments. The Minister stated that the Labour Laws Amendment Bill was approved by Cabinet for public comment and published in the Government Gazette on February 27, 2026. The process generated 216 public submissions, which are currently under review.
The Minister noted that more than 14,000 designated employers submitted Employment Equity reports following the promulgation of the Employment Equity Amendment Act and introduction of sectoral numerical targets. Additionally, over 11,000 non-designated employers applied for compliance certificates. However, compliance levels remain concerning. In the 2025/26 financial year, the Department targeted 3,324 Employment Equity inspections, including Director-General Reviews, re-assessments, and monitoring interventions. A total of 1,948 employers were reviewed and served with recommendations. Of these, only 181 employers were found compliant, representing a compliance rate of 9 percent, while 1,767 employers were found to be non-compliant and were issued with recommendations for corrective action.
Meth announced that the government is strengthening labour inspection and enforcement capacity through Project 20,000 inspector interns. The first phase of 10,000 inspector interns commenced during the 2025/26 financial year, and by the end of April 2026, approximately 3,800 young interns had already entered training and deployment processes. She stated that a further 3,500 interns will begin at the end of May, while another 2,700 will start by the end of June 2026. These young recruits are seen as new boots on the ground in the fight against labour exploitation, non-compliance, and workplace injustice. The project gained momentum following President Cyril Ramaphosa's announcement during the 2026 State of the Nation Address that 10,000 permanent labour inspectors will be appointed. The Department will start recruiting these permanent inspectors instead of recruiting the remaining 10,000 interns, with R5 billion set aside for the Medium-Term Expenditure Framework (MTEF) period.
Meth stated that the National Minimum Wage continues to benefit millions of workers, estimating that since its introduction, it has benefited six million workers. She added that the Commission for Conciliation, Mediation and Arbitration (CCMA) continues to focus on conflict prevention and job retention. This year, it targets resolving 99% of cases within prescribed timeframes and seeks to address 90% of public interest disputes while supporting the preservation of jobs during retrenchment processes.
