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ANNUAL EMPLOYMENT EQUITY REPORT, WHO NEEDS TO COMPLY AND WHAT ARE THE RISKS FOR EMPLOYERS?

ANNUAL EMPLOYMENT EQUITY REPORT, WHO NEEDS TO COMPLY AND WHAT ARE THE RISKS FOR EMPLOYERS?

26 Jun 2018

It is a statutory requirement that designated employers must annually submit a number of statutory reports.

PKF (VGA) Human Capital can assist your company to comply with these requirements.

The next statutory report required from designated employers, the Employment Equity Report based on the requirements of the Employment Equity Act 55 of 1998 (EEA), is due at the end of September 2018. Designated Employers are legally required to comply with Legislation, as summarized by the following.  

A “designated” Employer according to the EEA definitions means:

  • an employer who employs 50 or more employees;
  • an employer who employs fewer than 50 employees, but has a total annual turnover that is equal to or above the applicable annual turnover of a small business in terms of schedule four to this Act (refer to table below)
  • a municipality, as referred to in chapter 7 of the Constitution;
  • an organ of state as defined in section 239 of the Constitution, but excluding local spheres of government, the National Defence Force, the National Intelligence Agency and the South African Secret Service; and
  • an employer bound by a collective agreement in terms of section 23 or 31 of the Labour Relations Act, which appoints it as a designated employer in terms of this Act, to the extent provided for in the agreement.”

1.1 Purpose of Employment Equity Act:

The purpose of the Act is to achieve equity in the workplace by-

  1. a) Promoting equal opportunity and fair treatment in employment through the elimination of Unfair discrimination and:
  2. b) Implementing affirmative action measures to;
  • Re-dress the disadvantages in
  • Employment experienced by designated groups,
  • To ensure their equitable representation in all levels in the workforce.
  • Top Management
  • Senior Management
  • Professionally qualified and experienced specialists and mid management
  • Skilled technical and academically qualified workers, junior management, supervisors, foremen and superintendents
  • Semi-skilled discretionary decision making
  • Unskilled and defined decision making

1.2 Who must submit reports

ALL DESIGNATED EMPLOYERS MUST SUBMIT EVERY YEAR.

This is determined whether an employer:

  • Either Has 50 employees or more
  • OR Falls within the threshold below

Should Employers NOT comply;

To avoid the above penalties PKF Human Capital is ready to assist in the follow process;   

 THE EMPLOYMENT EQUITY PROCESS

The Company is ultimately responsible for the following:

  • Assign a Senior Employment Equity Manager
  • Communication, awareness and training
  • Development of a plan between 2 and 5 years
  • Employment Equity Committee
  • Conducting an analysis on all policies and procedures
  • Establish a Workforce profile
  • Implementation (ongoing process)
  • Report to the Department of Labour

Kindly contact me to set up a meeting to discuss your specific needs.

Kind Regards

Elsa van Zyl


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