Employment Equity
Do you have more than 50 employees in your employment? Are you compliant with Employment Equity Legislation?
A step-by-step guide for Employment Equity
Step 1:
Nomination process to select the EE forum.
Appointment of EE Manager & forum chairperson.
Sign all appointment letters & Committee constitution.
Step 2:
Conduct analysis on all company policies, procedures, processes and work environment.
Complete EEA12 document.
Step 3:
Draft EE Plan.
Set up numerical goals and targets.
Align EE Plan to company strategic processes.
Step 4:
Conduct quarterly meetings with forum.
Discuss progress made towards EE Plan.
Step 5:
Submit annual EE reports to DoL before the 15th of January the following year.
Display EEA2 report.
The Employment Equity (EE) Act No. 55 of 1998, along with its subsequent amendments, sets out the requirements for employers, particularly Designated Employers (those with more than 50 employees), to promote fairness and equality in the workplace.
Below is a summary of key points related to the Act and the recent changes brought about by the EE Amendment Bill 2023 that has taken effect from 01 January 2025:
- Requirements for Designated Employers
- Employers with more than 50 employees must adhere to the Employment Equity Act.
- They must:
- Consult with an Employment Equity Forum on a regular basis.
- Conduct an Analysis of policies, practices, and the working environment to identify barriers hindering employees from designated groups (e.g., Black people, women, and people with disabilities).
- Develop an Employment Equity Plan to eliminate barriers and promote an equitable workforce.
- Set measurable targets that align with both sectoral and internal EE goals.
- Report annually to the Department of Labour on progress in achieving EE.
- Fines for Non-Compliance
- If a Designated Employer fails to comply with the requirements of the EE Act, they can face fines of up to 10% of their annual turnover.
- Key Changes in the EE Amendment Bill (2023)
- Definition of People with Disabilities: Expanded to include those with intellectual or sensory impairments.
- Redefined Designated Employer: Turnover is no longer a criterion. The focus is on employers with more than 50 employees.
- Voluntary Compliance: The provision allowing voluntary compliance (Section 14) has been repealed. Employers can no longer voluntarily comply; they must follow the law.
- Consultation Requirements (Section 16): Employers must consult only with trade unions that represent members at the workplace. If no majority union exists, a committee representative of all occupational levels, including both designated and non-designated groups, must be elected.
- Sectoral Targets: The Minister of Employment and Labour can set sector-specific numerical targets, which may differ by sub-sector, region, or other relevant factors.
- Employment Equity Compliance Certificate (Section 53):
- Employers will only receive a certificate of compliance if they meet sectoral targets or can provide reasonable justification for failing to meet them.
- Employers must also submit EE reports, ensure no findings of unfair discrimination, and meet wage requirements (National Minimum Wage Act).
- The certificate will be mandatory for employers applying for state contracts.
- Compliance and Reporting
- The EE Compliance Certificate will be a critical requirement for state contracts and will be issued when employers demonstrate compliance with the sectoral targets or provide justifiable reasons for non-compliance.
- Conclusion
- It is essential for Designated Employers to fully comply with the Employment Equity Act and the EE Amendment Bill to avoid penalties and to contribute to a fairer, more inclusive workplace. Regular consultations, continuous analysis, and clear reporting on EE progress are key responsibilities under the Act.