LEGISLATIVE AMENDMENT AND DEVELOPMENT NEWSLETTER - OCTOBER 2021

This newsletter highlights the latest statutory amendments, enactments, caselaw, notices and ancillary developments relevant to the SERR Synergy products and services for the month. 

The B-BBEE Commission published Explanatory Notice 02 of 2021 regarding the completion of form B-BBEE 1 and the compliance matrix for submission of a compliance report in terms of section 13G (1) and (2) of the Broad-Based Black Economic Empowerment Act 53 of 2003 (B-BBEE Act), as amended, in respect of the Johannesburg Stock Exchange (JSE) and state-owned entities (SOEs).

Latest caselaw:

  • In Minerals Council of South Africa v Minister of Mineral Resources and Energy and Others (20341/19) [2021] ZACC 33 (21 September 2021), the Gauteng High Court, in a unanimous judgement on 21 September 2021, ruled that the Broad-Based Socio-economic Empowerment Charter for the Mining and Metals Industry, 2018 (Mining Charter III or the Charter) does not constitute binding subordinate legislation but is an instrument of policy. Consequently, section 100(2) of the Minerals and Petroleum Resources Development Act 2002 (No. 28 of 2002) (MPRDA) does not empower the Minister of Mineral Resources to make law. Various clauses of the 2018 Charter were set aside, including the clauses relating to B-BBEE ownership empowerment obligations on existing mining right holders when they wish to renew or transfer their rights.
  • In Afriforum NPC v Minister of Tourism and Others; Solidarity Trade Union v Minister of Small Business Development and Others (499/2020 and 498/2020) [2021] ZASCA 121 (22 September 2021), the Court order held that “…the Minister of Tourism was not legally obliged by section 10(1)(e) of the Broad-Based Black Economic Empowerment Act 53 of 2003 to make eligibility criteria for assistance from the Tourism Relief Fund subject to the Tourism Sector Code made in terms of that Act and the direction was consequently unlawful”.

Employment Equity Act, 1998 (Act No. 55 of 1998):

The Department of Employment and Labour, in a media statement dated 7 September 2021, confirmed that the Employment Equity (EE) reporting season for both manual and online reporting had opened on 01 September 2021. The manual EE reporting period closes on 01 October 2021 and the online period closes in January 2022.

Constitution of the Employment Equity Committee:

SERR Synergy has identified the need to formulate a constitution for EE committees in order to regulate their composition and activities, which will be provided to SERR Synergy’s SDF/EE clients. A properly constituted EE committee will become even more imperative once the new amendments expected in March 2022 become law.

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