HUMAN RESOURCES 101 (PTY) LTD

Employment Equity Compliance

Background:

The Employment Equity Act is an employment policy that applies to all employers and workers and protects both workers and job seekers from unfair discrimination. It also provides a framework for implementation of Affirmative Action. Simply submitting your Employment Equity Report does not mean you are compliant with the provision of this Act.

Annual deadline: 15 January

The aim of the Employment Equity Act:

  1. To promote equal opportunities and fair treatment to all in the workplace by eliminating unfair discrimination; and
  2. To implement Affirmative Action (AA) measures to redress the disadvantages in employment experienced in the past by members from designated groups.

According to the Act, organisations that employ more than 50 employees and organisations with less than 50 employees with an annual turnover exceeding the prescribed threshold as per the table below, must draft and submit Employment Equity reports to the Department of Labour by 1st of October annually.

A continuous, planned and structured process:

Employment Equity has a 3-PHASE approach, all of which need to be adhered to in order to be compliant.

     PHASE 1:  PREPARATION

            STEP 1:  Assigning responsibilities

            STEP 2:  Communication & training

            STEP 3:  Consultation

            STEP 4:  Analysis

 

     PHASE 2:  IMPLEMENTATION

            STEP 5:  Action Plan

            STEP 6:  Time Frames

            STEP 7:  Allocation of Resources

            STEP 8:  Plan Communication

     PHASE 3:  MONITORING

            STEP 9: Evaluation

            STEP 10: Reporting

The benefits of becoming compliant:

  1. Ensure legal compliance and avoid huge fines (up to R2.7m).
  2. Increase your B-BBEE (Broad Based Black Economic Empowerment) score by maximising your points on the Employment Equity element of the scorecard.
  3. Fast track the process of creating a diverse workforce.

Turnover Thresholds (Schedule 4):

Sector or sub-sectors in accordance with the Standard Industrial Classification

Total annual turnover

Agriculture

R6m

Mining and Quarrying

R22.50m

Manufacturing

R30.00m

Electricity, Gas and Water

R30.00m

Construction

R15.00m

Retail & Motor Trade & Repair Services

R45.00m

Wholesale trade, Commercial agents and Allied Services

R75.00m

Catering, Accommodation and other Trade

R15.00m

Transport, Storage & Communications

R30.00m

Finance & Business Services

R30.00m

Community, Special & Personal Services

R15.00m

 

Maximum permissible fines if found in contravention of the EE Act:

Previous Contravention

Contravention of any provisions of Section 16, 19, 20, 21, 22 and 23

No previous contravention

R1 500 000

A previous contravention in respect of the same provision

R1 800 000

A previous contravention within the previous 12 months or 2 previous contraventions in respect of the same provision within 3 years

R2 100 000

Three (3) previous contraventions in respect of the same provisions within 3 years

R2 400 000

Four previous contraventions in respect of the same provision within three years

R2 700 000

Specialised services provided by HR101:

HR101 employs specialists, who are trained and qualified assist you in ensuring your organisation complies with Employment Equity Legislation. This means that we come from a strong knowledgeable and ethical position of compliance with Employment Equity Legislation. Our training imbues us with the knowledge required to focus on your organisation’s needs and requirements as part of your long-term planning and BEE requirements.

In a practical and participative manner, HR101 will assist your organisation with:

  • Facilitation of the process to complete EEA1 forms by all employees.
  • Facilitation of the process required to establish an Employment Equity Committee.
  • Facilitation and consultation at all Employment Equity Committee Meetings (minimum 2 per annum).
  • Facilitation of the process to appoint an Employment Equity Manager.
  • Development of the EEA2 (Employment Equity Report).
  • Development of the EEA4 (Income Differentials Report).
  • Development of the EEA12 (Section 19 – Qualitative Analysis).
  • Development of the EEA13 (Employment Equity Plan).
  • Development of the EEA10 (Employment Equity Progress Report).
  • Supply the EEA3 Summary –Employment Equity Act Poster.
  • Recommendations to Management and Committee regarding numerical goals & targets and EE Plan.
  • Draft documents required to implement the process successfully:
    • Appointment letters for EE Manager;
    • Appointment letters for EE Committee members;
  • Drafting an Employment Equity Policy Document;
  • Drafting and Employment Equity Constitution Document.
  • On-line submission of the EEA2 and EEA4 to the Department of Labour.

 

THANK YOU FOR YOUR TIME AND THE OPPORTUNITY TO BE OF SERVICE TO YOU AND YOUR ORGANISATION.