Employment Equity
Important Update
The EE Amendment Act, No. 4 of 2022 has not yet taken effect, all designated employers, regardless of size, must submit their 2023 EE Reports (EEA2 and EEA4 forms) using the current Employment Equity Act, 1998 (EEA). – Department of Labor.
Purpose
The aim of the Employment Equity Act is to achieve equity in the workplace by promoting equal opportunity and fair treatment in the workplace through the elimination of unfair discrimination. The Employment Equity Act states unequivocally that “suitably qualified” candidates must be appointed. As a result, it is critical that designated employers align their skill development goals with their employment equity targets so that, if a specific qualification or skill is required for a specific occupational level, there is proper alignment.
What is the employer’s obligation under the Employment Equity Act?
All employers are required to follow the Employment Equity Act and ensure that their employees receive equal pay for equal work. Only designated employers are required to conduct a workplace analysis and submit annual reports to the Department of Labour.
What is a designated employer?
A designated employer is one who employs 50 or more people or has a total annual turnover as reflected in Schedule 4 of the Employment Equity Amendment Act No. 47 of 2013. , as well as municipalities and state organs. Employers can volunteer to become designated employers in terms of section 14 of the EE Act.
Turnover Threshold Schedule 4
| Sector or subsectors in accordance with the Standard Industrial Classification | Total Annual Turnover |
| Agriculture | R6 million |
| Mining and Quarrying | R22.5 million |
| Manufacturing | R30 million |
| Electricity, Gas and Water | R30 million |
| Construction | R15 million |
| Retail and Motor Trade and Repair Services | R45 million |
| Wholesale Trade, Commercial Agents and Allied Services | R75 million |
| Catering, Accommodation and other Trade | R15 million |
| Transport, Storage and Communications | R30 million |
| Finance and Business Services | R30 million |
| Community, Special and Personal Services | R15 million |
A designated employer must fulfil the following responsibilities:
A designated employer must implement affirmative action measures for designated groups to achieve employment equity. In order to implement affirmative action measures, a designated employer must:
- develop EE committee;
- promote a culture of learning;
- conduct an analysis;
- prepare an employment equity plan; and
- report to the Director-General
What are the designated groups?
A designated group means black people, women, or people with disabilities.
Why should businesses be concerned about employment equity?
Companies are increasingly being audited and fined a minimum of R1.5 million, or 10% of the employer’s annual turnover (whichever is the greatest); or 10 years imprisonment for non-compliance with employment equity reporting requirements. This is a hard pill to swallow for a process that is simple to implement with the right assistance. Skills Junction offers expertise and assistance with everything from skills development to the submission of reports and plans. With the E.E Report submission deadline approaching (15 January 2023), now is an excellent time to assess your company’s Employment Equity Plan and Employment Equity Reporting in light of the requirements. Contact us today for all of your Employment Equity training and submission needs.
Quick Fact!
Skills Junction is a SETA accredited training provider and a Level 1 EME with 100% B-BBEE compliance and 135% procurement recognition.
“Your Development is our Driving Force”
Official Source: Employment Equity Bill