South Africa’s main opposition party, the Democratic Alliance (DA), has launched a legal bid to overturn recently enacted amendments to the country’s labor laws, describing the legislation as unconstitutional and harmful to investor confidence.
The party filed its court application on Tuesday, targeting the Employment Equity Amendment Act, which came into force in January. The law grants the labor minister authority to set binding numerical targets for the employment of Black South Africans, women, and people with disabilities in sectors deemed to have failed on transformation benchmarks.
The DA, which forms part of the country’s unity government, argues the law discriminates against other groups and risks deepening racial divisions in the labor market. It also warns of economic consequences, including the potential flight of foreign investors wary of what the party calls “rigid and punitive” compliance measures.
Federal Chairperson Helen Zille denounced the legislation as “totalitarian,” claiming it infringes on individual rights and undermines merit-based hiring. “This law does not promote inclusion; it enforces exclusion in reverse. It could dismantle what’s left of investor confidence,” she said at a press briefing.
Under the new framework, companies operating in designated sectors must meet government-set diversity targets or face financial penalties. The Department of Employment and Labour says the reform is necessary to accelerate transformation and dismantle persistent inequalities rooted in the apartheid era.
But the DA contends that rather than correcting systemic imbalances, the law imposes arbitrary racial quotas that erode non-racialism enshrined in South Africa’s Constitution. “We support redress, but not at the cost of constitutional freedoms,” Zille added.
The issue has also drawn international attention. During his administration, former U.S. President Donald Trump cited the employment equity measures as part of what he called “racist laws,” using it to justify a reduction in financial aid to South Africa. He further stirred controversy by suggesting the relocation of white Afrikaners to the United States.
While government officials insist the amendments are a long-overdue step toward inclusive growth, critics argue the law risks unintended consequences, including legal uncertainty, resistance from the private sector, and a chilling effect on foreign direct investment.
The DA says it will continue to press its legal case, seeking clarity from the courts on whether the state has overstepped its constitutional mandate.