High Court dismisses urgent application seeking to block employment equity targets

John Botha, Joint CEO, Global Business Solutions

The judgment has immediate and far-reaching consequences. From 1 September 2025, designated employers across 18 economic sectors must submit revised equity plans that align with the sector-specific numerical targets.

Why the court rejected the application

Judge Moshoana’s ruling emphasised several key points:

• Consultation took place: Draft proposals have been on the table since 2019, and stakeholders had repeated opportunities to provide input.
  
• Lawful process followed: Once a regulation has been gazetted, it cannot simply be undone or paused through an urgent interdict. Challenges must proceed through a full judicial review.
  
• No proven harm: The applicants’ claims that the targets would result in dismissals or unfair discrimination were not substantiated.
  
• Separation of powers respected: The Court reiterated that it cannot suspend the lawful actions of the Executive unless they are proven to be unlawful.

Employment Equity

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What this means for business

The ruling sends an unmistakable message: compliance cannot wait.

• Employers must act now to align their equity plans by 31 August, with report submission and implementation beginning on 1 September.
  
• Non-compliance carries serious consequences: disqualification from state tenders and fines of up to 10% of turnover.
  
• Businesses still retain the right to raise “reasonable grounds” if specific targets are not achievable in their sector, but these will need to be properly motivated.

Employment Equity

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Talita Laubscher, Melissa Cogger, and Chloë Loubser  19 May 2025

A business perspective

For business leaders, the real story lies beyond the courtroom. The pressure is now squarely on boards and executives to translate policy into practice. The challenge is not just about legal compliance but about building leadership pipelines, developing African and female talent, and ensuring transformation strengthens rather than destabilises operations.

The message is clear: transformation is not optional, and delay is no longer a strategy. Companies that treat this as a tick-box exercise risk more than fines—they risk falling behind in an economy where inclusive leadership is becoming a competitive necessity.