Two coloured women, who had applied for jobs at the Department of Correctional Services and were "strongly" recommended, say they ultimately lost out because of the colour of their skin.
But the department has argued in the Labour Court that it was only applying employment equity, adding that coloured women were "over-represented" for the positions.
Desiree Merkeur, who had applied for a position as a secretary at DCS's Breede Valley region in 2011, testified she was "strongly recommended" after being interviewed.
She, along with eight other coloured people, mostly employed by DCS, and a white male, are challenging the application of the department's employment equity policy, which uses national instead of provincial racial figures to determine the number of employees from the four designated groups.
The FW de Klerk Foundation and Solidarity union have assisted the applicants in their court case. The Police, Prisons and Civil Rights Union has indicated it supports the department's policy.
DCS counsel Murumo Moerane SC said the department's application of its national employment equity policy was to correct "imbalances". He said it did not discriminate against coloured people.
Moerane said according to the employment equity targets, coloured females were over-represented in the Breede Valley region, and that is why a deviation from the national policy was requested from the national commissioner.
Deidre Jordaan, a social worker at Brandvlei prison, testified she had applied for the position of employee assistance practitioner.
She was told she had been the best candidate, but instead an African woman was appointed.
DCS counsel Dumisa Ntsebeza said while the recommendation was that she should have been appointed from July 1 2011, the chairman of the interview panel requested "further information" and her appointment was conditional.