Business organisation Sakeliga and the National Employers' Association of South Africa (Neasa) have jointly filed an urgent application for an interdict against the implementation of the 2025 Employment Equity sectoral numerical quotas and accompanying administrative regulations.

The parties are also seeking the judicial review and setting aside thereof.

The application challenges the legality and constitutionality of the newly introduced employment equity framework, which introduces rigid race and gender quotas across 18 economic sectors on the top four occupational levels.

These quotas, formally published in April, require employers with 50 or more employees to restructure their entire workforce to reflect national gender and racial demographics of the country, or face dire consequences, the organisations note.

The parties explain that the legal challenge comprises two parts, with the first being a judicial review of the procedural acts of the Minister in setting the quotas, which they say were “fraught with irregularities and inadequacies in process”.

The second part entails a constitutional challenge of the substance of relevant sections in the Employment Equity Act (EEA), which allow for and facilitate the setting and enforcement of these quotas.

In the founding affidavit, Sakeliga and Neasa argue that the Minister did not act in accordance with the Promotion of Administrative Justice Act (PAJA), as she failed to adhere to the prescriptions of Section 15A of the EEA prior to the setting and publishing of the 2025 sectoral numerical quotas.

This renders her actions unlawful and invalid, they argue, adding that the court papers, filed in the Gauteng Division of the High Court, reveal “glaring procedural and substantive flaws” in the Minister’s process.

This includes failure to identify and gazette economic sectors; improper consultation; no lawful publications; arbitrary quotas; no socioeconomic-impact assessment performed; and violation of the Constitution.

“Unless the court intervenes and grants the interim relief sought, every employer that employs 50 employees or more, in every sector of the economy, will be required by legislation to prepare and implement employment equity plans to make their workforce conform to the 2025 quotas,” say Sakeliga and Neasa.

They argue that the time and expense incurred by employers in preparing such employment equity plans, or attempting to avoid or preparing for the consequences, with which the State threatens them when they inevitably cannot comply, will be irrecoverably lost to employers and to the economy.

“From September 1, employers, their businesses, employees and prospective employees will suffer irreparable harm and loss when the attempted implementation of the employment equity plans based on unlawful quotas commences,” they argue.

Individuals will be employed or not employed, and promoted or not promoted, based on unlawful quotas, they continue.

Sakeliga and Neasa posit that employers will restructure and make other permanent changes to their workforce and corporate structuring, employ new employees and forego opportunities and take on the expense that this involves, all based on unlawful quotas.

“This filing marks the next important step in preventing these impossible, irrational, and harmful employment quotas for the benefit of employers, employees, and all communities across the country.”