Employment Equity Targets - Helping you and the Economy Grow

5Sep, 2024

Are You Ready for the Employment Equity Reporting Season?

Spring is upon us! As the season of renewal and growth begins, it’s the perfect time for businesses to refresh and align their strategies with South Africa’s transformative goals. Just as nature blossoms and adapts, now is the moment for your organization to spring into action and ensure compliance with the Employment Equity (EE) Act.

Why is Employment Equity Reporting Important?
Well, the upcoming Employment Equity reporting deadline is a reminder to all designated employers to prioritize EE compliance, especially now that there has been some confusion recently about which version of the Employment Equity Act is currently in effect. Our sources within the Labour Department have clarified that the Employment Equity Amendment Act No. 47 of 2013 is indeed the current legislation in force. According to this Act, “designated employers” are defined as those with 50 or more employees or those with fewer than 50 employees who meet the turnover threshold specified in Schedule 4 of the Act.

Additionally, employers with fewer than 50 employees may also be considered designated employers if they meet the turnover thresholds outlined in Schedule 4 of the Act. Additionally, employers who do not meet these criteria can still choose to voluntarily do their EE reporting as stipulated in Section 14 of the EE Act. Beyond avoiding fines that can reach up to R1.5 million or 2% of annual turnover (rising to R2.7 million or 10% for repeat violations), embracing Employment Equity is about fostering a workplace that is as diverse and inclusive as our vibrant country. It’s about reflecting the rich tapestry of South Africa in your business and taking steps toward a more equitable economy.

B-BBEE and Spring Growth
Just like the new growth we see in spring, Broad-Based Black Economic Empowerment (B-BBEE) and Employment Equity present opportunities for growth, innovation, and a thriving business environment. By aligning your business with these principles, you not only comply with regulations but also position your company as a leader in transformation and inclusivity.

Let Us Help You Bloom!
Our experts are here to help you tackle the challenges of EE and B-BBEE compliance. Whether it’s EE planning plan, completing your reports, or increasing your B-BBEE score, we’ve got you covered. Don’t miss this chance to renew and refresh your commitment to transformation—just in time for spring!

Don’t Miss the Deadline!
Reach out to us today on 011 483 1190 or email us . Let’s work together to grow a more inclusive and prosperous future.

Best Regards,
The EconoBEE Team
www.econobee.co.za

7Feb, 2024

Breaking News -> -> -> Updated Employment Equity Targets for Public Comment

01 Feb 2024 saw the release of proposed updated Employment Equity Targets, Focusing on Diversity within the Workforce

Big changes are coming to the Employment Equity Act! The Department of Employment and Labour has revised its targets, aiming to increase diversity and representation, in all management positions, from junior to top management.

Here’s what you need to know:

New law, new targets: In April 2023, President Ramaphosa signed the legislation empowering the Minister of Labour to set sector-specific targets for different industries.
Draft targets published: Draft targets for various sectors are open for public comment until May 2nd, 2024.
Focus on all management positions: The revised targets prioritize achieving diverse leadership teams. For example, in manufacturing, 40% of top management should be from designated groups (Black people, women, people with disabilities), with at least 15% being female.
Goodbye specific quotas: The new system replaces individual quotas for African, Coloured, and Indian employees with a broader “designated groups” category.
Nationwide reach: Provincial and national targets are merged, creating a single national target for each sector.
Faster progress expected: The department aims to accelerate progress towards fairer representation in workplaces, acknowledging the slow pace of previous efforts.

What does this mean for businesses?

Companies with more than 50 employees will need to adapt to the new targets. This might involve:

Reviewing workforce demographics: Assess how your company aligns with the revised targets, especially in senior management.
Developing strategies: Implement plans to attract, recruit, and promote talent from designated groups to achieve the desired representation.
Staying informed: Closely monitor updates and public comment outcomes regarding the final targets.

Keep in mind: These are draft targets, and the final version might be adjusted based on public feedback. This is your opportunity to exercise your right to comment during this 90 day window and to prepare for potential changes and so ensure your company complies with the evolving Employment Equity Act. Click here to read the full draft regulation.

Unsure of what this all means for you and your company? Choose EconoBEE as your consultant for a stress-free Employment Equity process, from A-Z! Our expertise and commitment to staying updated on regulations ensure you meet your compliance needs effortlessly.

10Nov, 2023

Unlocking the Dynamics of Employment Equity

Unlocking the Dynamics of Employment Equity: Join Our Workshop with Dr. Muriel Mushariwa

We are thrilled to announce an exciting opportunity for all individuals and organizations passionate about fostering equality and inclusion in the workplace. Join us for our upcoming Employment Equity Workshop, “Unlocking the Dynamics of Employment Equity,” taking place on November 30th, 2023. Led by the distinguished Dr. Muriel Mushariwa, this workshop promises to be an eye-opening exploration of the Employment Equity Act and its imminent amendments, offering invaluable insights and strategies for success.

Why Attend Our Employment Equity Workshop? At the heart of this event is our dedicated instructor, Dr. Muriel Mushariwa, whose illustrious career as a Senior Lecturer of Law is marked by a profound commitment to advancing Employment Equity. Dr. Mushariwa’s expertise extends across a spectrum of skills, from lecturing and public speaking to legal writing, analytical prowess, and policy analysis. With an LLB and LLM from the University of Kwazulu-Natal, Pietermaritzburg and a PhD from the University of Witwatersrand, her academic accomplishments underscore her dedication to legal excellence.

Dr. Mushariwa is not just an academic; she’s a consultant specializing in Employment Equity, Skills Development, and Broad-Based Black Economic Empowerment. This unique blend of academic knowledge and real-world experience equips her to offer participants practical guidance on navigating the complexities of Employment Equity.

What to Expect: Workshop Highlights During this workshop, participants can look forward to an engaging and enlightening journey through the following key topics:

Overview of the Employment Equity Act: Gain a solid understanding of the foundational principles and historical context of the act.
Impact of the Proposed Employment Equity Amendment Act: Explore the proposed amendments and their implications for organizations.
Implementation of the Employment Equity Act: Receive practical strategies for successful implementation and compliance.
Linking Employment Equity to Broad-Based Black Economic Empowerment (B-BBEE) Strategy: Discover the interplay between Employment Equity and broader economic empowerment goals.

Unlock the Power of Knowledge This workshop is not just a learning opportunity; it’s a chance to gain knowledge that empowers you to be a change-maker in your organization. Dr. Muriel Mushariwa’s expert insights, eloquent communication, and extensive knowledge will equip you to navigate the evolving landscape of Employment Equity with confidence and success. Whether you’re an HR professional, a business owner, or someone passionate about equality, this workshop is designed to provide you with actionable takeaways.

Reserve Your Spot Don’t miss this unique opportunity to learn from a true expert in the field. Reserve your spot today and take the first step toward becoming a genuine advocate for Employment Equity. Join us on November 30th, 2023, and embark on a transformative journey towards creating a more equitable workplace.

Stay connected with us for more updates, resources, and insights to prepare you for the workshop. We look forward to your participation and to collectively driving positive change in the world of Employment Equity.

21Sep, 2023

Crucial Update for EE Submissions

If you are an employer in South Africa, here is an important heads-up! The 2023 Employment Equity (EE) reporting period has arrived, and there is a crucial update you need to be aware of.

As communicated by the Department of Labour, the EE Amendment Act, No. 4 of 2022 has not yet come into effect, which means that all designated employers, regardless of size (yes, even those with 1-49 employees), need to submit their 2023 EE Reports (EEA2 and EEA4 forms) using the current Employment Equity Act, 1998 (EEA).

Key Dates to Mark:

Submission period opens on 1 September 2023, offering both manual and online options.
Manual EE submissions must be in by 2 October 2023.
For online submissions, the deadline is 15 January 2024 (midnight).

Just so you know, missing the 15 January 2024 (midnight) deadline could lead to enforcement actions under the EEA. Your organisation might also be left out of the Employment Equity Public Register for 2023.

We are here to make it easy for you, choose EconoBEE for a stress-free EE submission process!

Our expertise and commitment to staying updated on regulations ensure you meet your compliance needs effortlessly. Let us make your EE submission a breeze.

Reach out to EconoBEE on 011 483 1190 and talk to a consultant at your convenience.

7Jun, 2022

Penalties for Employment Equity Contraventions!

Penalties for Employment Equity Contraventions!South African companies are currently facing penalties for failing to meet the targets set in their Employment Equity (EE) plans. We are now seeing the Department of Labour ramping up its auditing and has stated that the majority of companies with March 2022 year-end, have missed the mark in terms of complying with EE legislation.

One of the reasons for companies being fined and penalised is that their EE plans are not conforming with the goals and numerical targets set by the designated employers and therefore not projecting rational progress towards transformation. It is therefore prudent that companies avoid setting targets in their EE plans that are not attainable.

EconoBEE specialises in Employment Equity Services and is therefore well-equipped to assist companies accurately when it comes to compliance in terms of EE plans.

EconoBEE also hosts and runs workshops on Employment Equity in which we advise companies and their relevant staff members on how they can comply with EE legislation

For more information on our EE assistance and training and workshop offerings, please contact us on 011 483 1190 or email info@econobee.co.za

14Sep, 2021

Employment Equity Compliance vs Government Business

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 info@econobee.co.za if you would like to hear more.

31Aug, 2021

Are you a Designated Employer and have to submit your Employment Equity Forms?

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 1^st of September 2021. What is the current definition of a designated employer?

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.

TURNOVER THRESHOLD APPLICABLE TO DESIGNATED EMPLOYERS

Sector or subsectors in accordance with the Standard Industrial Classification	Total Annual Turnover
Agriculture	R6,00 million
Mining and Quarrying	R22,50 million
Manufacturing	R30,00 million
Electricity, Gas and Water	R30.00 million
Construction	R15,00 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

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:

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.

If you need help in preparing and submitting your employment equity reports or ensuring that your employment equity committee and documents are in order, please feel free to contact us at EconoBEE to assist.

17Jun, 2021

What to Expect from an Employment Equity Inspection

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.

While the compiling of an Employment Equity File can be a very administrative and time consuming exercise, EconoBEE is happy to assist with this process. Please feel free to contact us directly for more details, our consultants are ready and willing to assist.

2Feb, 2021

Are your skills development goals aligned to your employment equity targets?

Recently the Parliament’s Portfolio Committee on Employment and Labour has called for public comment on the Employment Equity Amendment Bill. The bill has been described by President Cyril Ramaphosa as a ‘game changer’ for Black Economic Empowerment in South Africa. The Minister of Labour, after consulting with various sectors including the Commission for Employment Equity, will be empowered through the Bill to set numerical employment equity targets for any sector or part of a sector by notice in a gazette. The Labour department has clarified that the notice may set different numerical targets for different occupational levels, sub-sectors or regions. Some of the factors which the Minister will consider when setting sector targets include:

The qualification, skills and experience required to be employed in a particular occupational level;
The rate of turn-over and natural attrition in a sector;
Recruitment and promotional trends within a sector.

The Employment Equity Act is clear that “suitably qualified” candidates should be appointed. It is therefore important that designated employers align their skills development goals to their employment equity targets so that, should there be a specific qualification or skill required for a particular occupational level, there is proper alignment. Avoid the pitfalls of non-alignment and let us help you with your skills development planning. Why not give us, at EconoBEE, a call on 011 483 1190 or email us and let us help simplify and expedite your transformation journey! Online Workshops To peruse our 2021 Online Workshop List, please click here

Tag Archives: Employment Equity Targets