The Employment Equity Act
Are you a designated employer?
Designated employers are obliged to comply with the requirements set by the Employment Equity Act. The Employment Equity Act has recently been amended by the Employment Equity Amendment Act 4 of 2022. Although the above-mentioned amendment has been signed into law by the President the effective date has not yet been proclaimed by the President.
Until such time, an employer will be a designated employer is the following requirement are met:
- Employers who employ 50 or more employees; or
- Employers who employ less than 50 employees, but have at least an annual turnover as per the respective sectors set out below:
SCHEDULE 4
TURNOVER THRESHOLD APPLICABLE TO DESIGNATED EMPLOYERS
| Sector or subsectors in accordance with the Standard Industrial Classification | Total annual turnover |
|---|---|
| Agriculture | R6,00 m |
| Mining and Quarrying | R22,50 m |
| Manufacturing | R30,00 m |
| Electricity, Gas and Water | R30,00 m |
| Construction | R15,00 m |
| Retail and Motor Trade and Repair Services | R45,00 m |
| Wholesale Trade, Commercial Agents and Allied Services | R75,00 m |
| Catering, Accommodation and other Trade | R15,00 m |
| Transport, Storage and Communications | R30,00 m |
| Finance and Business Services | R30,00 m |
| Community, Social and Personal Services | R15,00 m |
What are the responsibilities of designated employer’s?
- Consult with employees.
- Conduct an analysis.
- Prepare an employment equity plan.
- Report to the Director-General on progress made in implementing its employment equity plan.
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How often must the reports be submitted?
Reports must be submitted annually, irrespective of the amount of employees employed.
Employment Equity plan (EEA13)
According to Section 20 of the Employment Equity Act, all designated employers must have an Employment Equity plan in place. This plan should be valid between 1 to 5 years and must be available on the premises for inspection.
Is there a risk for an employer should there not be complied with the act?
Disputes regarding unfair discrimination can be referred to the Commission for Conciliation, Mediation and Arbitration (CCMA) within 6 months and compensation of up to 24 months of the employee’s remuneration may be awarded against the employer.
Any designated employer that is found guilty of non-compliance with this act will be liable to a fine of up to R2,7 million or 10% of the employer’s annual turnover, whichever is the greatest.
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