A new amendment to the Employment Equity Act will have serious implications for companies who plan to do business with government going forward. In terms of section 53 of the Amendment Act, measured entities will be issued with a compliance certificate for Employment Equity which is valid for a period of twelve months from the date of issue. The EE compliance certificate will be a prerequisite for access to contracts with the State and any of its organs; it will therefore be impossible for companies to do business with the government going forward without this certificate. In terms of proposed Employment Equity amendments, the criterion for non-designated employers is to comply with the national minimum wage or prove that they have been granted exemption and have no CCMA unfair discrimination awards against them. The criteria for designated employers will be to submit annual Employment Equity Reports, comply with the national minimum wage or prove that they have been granted exemption not to pay the national minimum wage, comply with their own annual Employment Equity targets and work towards the five-year sector specific Employment Equity targets. Please feel free to reach out to us on 011 483 1190 or firstname.lastname@example.org if you would like to hear more.
Are you uncertain as to whether you are required, by law, to submit your employment equity forms? The submission window to submit your employment equity forms opens up on the 1st of September 2021. What is the current definition of a designated employer?
All designated employers must submit their employment equity reports every year. If you qualify as a Designated Employer and either: Supply incorrect information, do not comply with the Employment Equity Act requirements, or do not submit the documents on time, then the following could occur:
- An employer who employs 50 or more employees,
- Or an employer who employs fewer than 50 employees, but has a total annual turnover as reflected in Schedule 4 of the Employment Equity Amendment Act No. 47 of 2013.
- Municipalities and organs of State
- Employers can also volunteer to become designated employers in terms of section 14 of the EE Act.
|Sector or subsectors in accordance with the Standard Industrial Classification||Total Annual Turnover|
|Mining and Quarrying||R22,50 million|
|Electricity, Gas and Water||R30.00 million|
|Retail and Motor Trade and Repair Services||R45,00 million|
|Wholesale Trade, Commercial Agents and Allied Services||R75,00 million|
|Catering, Accommodation and other Trade||R15,00 million|
|Transport, Storage and Communications||R30,00 million|
|Finance and Business Services||R30,00 million|
|Community, Special and Personal Services||R15,00 million|
- You may be fined heavily by the DoL – up to 10% of turnover depending on the severity of contravention.
- The DoL may visit you and do a full audit on your company.
As we all know, the Department of Labour is constantly conducting inspections throughout the year with designated employers. These inspections are to ensure that the information submitted in the annual Employment Equity Submissions is correct and in line with the Employment Equity Act as well as the EEA Plan of companies. These inspections are done at random, with little to no time to prepare. As a result, we at EconoBEE recommend compiling the Employment Equity file throughout the year, and having it ready for inspection at any point. This will make the inspection process less painful. Here are some of the documents that will need to be in that Employment Equity File:
- Letter of Assignment – this is to prove that the EE responsibility has been assigned to one or more senior manager(s), as required by Section 24
- Proof of Consultation with Employees, as required by Sections 16 and 17
- Proof of Analysis conducted, as required by Section 19
- EEA 13 – this is your Employment Equity Plan, as required by Section 20
- Proof of Record Keeping, as required by Section 26
- If your organization is listed as a Public Company then you will also need to provide Proof of the Publication of your Annual Reports, as required by Section 22.