The Employment Equity Act, 1998, Act 55 of 1998 was created in order to bring about a paradigm shift in South Africa’s labour relations, transforming it into a system based on equality. This change in the political life of all South Africans has brought about huge challenges to employers and employees alike. Seen as a threat to some, others view it as a positive beacon. If the Act was correctly implemented, South Africa will be heading towards a better competitive market and the workforce should be equally representative of the population. This paper aims to illustrate whether the Act has achieved its goals over the past 13 years by means of analysis and assessment of reports and statistical reviews. An overview is offered in the form of a literature review of the Act and defining the current legislation thereof in conjunction with management theory. The paper challenges the perceptions of all South Africans and finding possible solutions to areas in which the Act has failed. The paper further proposes action steps for the effective implementation of the legislation and for the process to follow to ensure that is fair in the sense that all employees can compete on equal terms.