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Employment Equity Submissions –

Compliance, Plans and Reports

Is your organisation EE compliant? Failing to comply with the Department of Labour’s EE requirements can result in a crippling fine  – up to 2% of turnover. We can help you with the analysis of your EE Report to ensure that you comply with EE requirements.

The employment equity act aims to promote equal opportunities for all – regardless of race, gender or for people living with disabilities. The Department of Labour (DOL) views the plan as a designated employer’s employment equity implementation programme.

The EE report looks at your current workforce profile and allows you to set organisational goals and targets that will consistently work towards equalising the demographics within your organisation and bring them in line with the demographics of the country’s population.

The report also highlights potential barriers that may be entrenched within organisational policies, practices and procedures, and sets the stage for planning remedial steps that will ultimately result in equity in your organisation.

All employers who qualify as designated employers need to submit the EE reports.

A designated employer either employs more than 50 employees, or has an annual turnover that exceeds the thresholds tabled below:

Sector or sub-sections Total annual turnover
Agriculture R6 million
Mining and Quarrying R22.5 million
Manufacturing R30 million
Electricity, Gas and Water R15 million
Construction R15 million
Retail and Motor Trade and Repair Services R45 million
Wholesale Trade, Commercial Agents and Allied Services R75 million
Catering, Accommodation and other Trade R15 million
Transport, Storage and Communications R30 million
Finance and Business Services R30 million
Community, Social and Personal Services R15 million

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 timeously:

  • you will not qualify as an Empowering Supplier
  • you will not be able to score Employment Equity points
  • you may be fined heavily by the Department of Labour – up to 2% of turnover!
  • the Department of Labour may visit you and do a full audit on your company

The EE report should be submitted electronically on the website of the Department of Labour before 15 January 2018. The submissions website is only open until 15 January, after which it will close down and you will be unable to submit this report.

The amendments now require that all designated employers submit a report every year.

The submission includes 2 documents that must reflect the progress made against the employer’s EE Plan:

The EEA2 indicates:

  • the number of employees in each race group ( African, Coloured, Indian, White and Foreign)
  • The number of male and female employees in each race group
  • the number of employees in:
    • top management
    • senior management
    • middle management
    • junior management
    • semi skilled
    • unskilled
  • The number of employees who have:
    • been promoted
    • resigned
    • been terminated

The EEA4 indicates:

  • the salaries for each race according to their occupational levels
  • the salaries for each gender according to their occupational levels
  • the combined salaries for the each level (to compare salaries broadly within the company)
  • Easy to understand
  • Communicated to all employees
  • Include representation from all levels
  • Goals should be :
    • Specific
    • Measurable
    • Attainable
    • Relevant
    • Time-bound
  • The EE Plan should include the following phases:
    • Planning
    • Development
    • Implementation
    • Continuous monitoring

It should include agreed and specified internal procedures for resolving disputes around the interpretation and implementation of the EE Plan

Between 1 year (minimum) and 5 years (maximum) – whatever period of time within these limits is necessary to allow the employer to make reasonable progress towards achieving employment equity

We can help you with your Employment Equity Report requirements by:

  • Analysing your figures and your numerical and non-numerical goals
  • Testing your existing EE plan against EE Act requirements and EE codes and EE Best Practice
  • Reviewing and aligning policies, procedures and practices to EE requirements
  • Ensuring that you have undertaken the necessary audits
  • Ensuring that appropriate remedies have been included in your EE plans
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2017-11-17T17:47:36+00:00 November 9th, 2017|Categories: Remuneration Articles & Research|Tags: |