Employment Equity

What Is the Employment Equity Act?

This law was designed to bring about equity in the workplace. It promotes equal opportunity and fair treatment in employment through elimination of unfair discrimination via a form of Affirmative Action.

To Whom Does It Apply?

The Act has jurisdiction over every designated employer, that is an entity with 50 or more employees or whose annual turnover is at least the amounts in schedule 4 of the Act, or an employer who has been declared a designated employer in terms of a collective agreement. There are exceptions including the National Defence Force, Intelligence Agency and South African Secret Service.

Under the Act, designated groups are Africans, Coloureds, and Indians, women of all races, and people with disabilities.
When a designated employer fails to comply by timeously submitting accurate EE Reports demonstrating tracking both his plan and his compliance, they may be liable to fines and prosecution in the Labour Court. Employees that do comply, however, may develop stronger relationships with the relevant stakeholders, which can boost productivity and profitability.

What Does Compliance Consist Of?

Each designated employer is expected to design, implement and report on an Employment Equity plan for equitable representation of employees from the above-mentioned designated groups. The Department of Labour published a Code of Good Practice on the Preparation, Implementation and Monitoring of Employment Equity Plans as well as a user guide detailing ten steps to preparing and implementing an Employment Equity plan.

How Can We Assist You?

At BEE Novation, we can assist your business comply with the Act, bearing in mind that implementation includes engaging with numerous stakeholders, including the relevant unions, as well as ensuring that workplace policies and practices are aligned to the Act.
Contact us today for assistance complying, avoiding the penalties, and leveraging your compliance steps towards strengthening your organisational culture (hyperlink Business Management Consultancy) and with it, your business’ bottom line.

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