Neasa and Sakeliga take equity quota fight to Constitutional Court

South Africa’s National Employers’ Association of South Africa (Neasa) and business group Sakeliga said on Friday they will appeal directly to the Constitutional Court after the Pretoria High Court dismissed their bid to halt the government’s new employment equity quotas.

The groups argue the targets, due to take effect on September 1, 2025, amount to harmful state interference in the labour market. But the country’s largest trade union federation, Cosatu, welcomed the ruling as a victory for transformation, calling the litigation “legal adventurism.”

The case highlights South Africa’s deep divides over how to tackle entrenched inequality and the legacy of apartheid, nearly three decades after the end of white minority rule.

Neasa and Sakeliga said the High Court had erred in rejecting their application for an interdict. They will now seek to have the decision overturned in the Constitutional Court, while also filing a parallel appeal to the Supreme Court of Appeal.

Neasa and Sakeliga argue, "The High Court ruling errs in not appreciating the constitutional nature of the matter, the suitability of an interdict against the operation of unlawful regulations, and the requirements for consultation before promulgation of regulations, among others."

They said they were continuing as planned with the second part of the court case to stop the Act and quotas. Part B seeks to have several sections of the Employment Equity Act declared unconstitutional and have the Minister of Employment and Labour’s regulations and sectoral numerical targets set aside.

Neasa and Sakeliga argue that the quotas will harm businesses, employees and the public by limiting employers’ ability to hire freely. They pledged to support employers in “maximising resistance and minimising harm,” describing the regulations as “absurd.”

Meanwhile, Cosatu said the High Court ruling reaffirmed the constitutionality of the Employment Equity Act and the minister’s power to set sectoral targets.

“The Constitution is eloquently clear in its requirements compelling the state to pursue measures to address the discriminatory legacies of the past 350 years,” Cosatu said in a statement. “Any government which fails to live up to these fundamental and common-sense constitutional prescripts can and has been taken to court previously.”

The union federation dismissed the business groups’ claims as disinformation. “Employment Equity accommodates all South Africans, of all races and genders, including White males. Nowhere does it provide for any worker to lose their job. Any statement claiming otherwise should be taken as seriously as the flat earth society,” it said.

Cosatu also pointed to 2023 amendments to the Act, which it said were the product of extensive consultations with labour and business. These included easing reporting requirements for small and medium-sized enterprises with fewer than 50 employees, tailoring targets to regional demographics, and granting exemptions to employers who could not meet quotas despite reasonable efforts.

It further said, "The Regulations provide ample time, e.g. five years and modest targets, well below population demographics, for employers to work towards.  As with all laws, exemptions are provided for employers who have tried but for various reasons cannot achieve their targets."

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