EMPLOYMENT EQUITY

Employment equity encourages the establishment of working conditions that are free of barriers, corrects the conditions of disadvantage in employment and promotes the principle that employment equity requires special measures and the accommodation of differences for the designated groups in South Africa.

 

EMPLOYMENTEQUITY

Submission of Employment Equity reports and related record keeping is done to:
Avoid huge fines for non-compliance (ranging between 2% and 10% of the company’s annual turnover or from 1.5 million to 2.7 million)
Up to R30 000 fines for responsible person – HR Manager/EE Manager
Ensure points on BBBEE (Black Based Broad Economic Empowerment) scorecard for Employment Equity as well as Management and Control.

EE and BBBEE:
 

The requirement in practical terms:

 representative workforce of the Economically Active Population (EAP):

NATIONAL EAP:

MALE FEMALE
AM African Male 40.7 AF African Female 34.2
CM Coloured Male 5.8 CF Coloured Female 5.0
IM Indian Male 1.9 IF Indian Female 1.1
WM White Male 6.4 WF White Female 4.9
TOTAL 54.8% TOTAL 45.2

PROVINCIAL EAP:

Province Male Female Total
A C I W A C I W
Western Cape 17.8  27.1  0.2  7.8  16.1  23.9  0.1  7.0  100.0
Eastern Cape 39.9  7.7  0.4  5.7  35.5  5.5  0.4  4.8  100.0
Northern Cape 28.0  20.7  0.1  4.9  24.2  19.0  0.0  3.0  100.0
Free State 47.1  1.7  0.2  5.3  40.4  1.2  0.1  4.1  100.0
KwaZulu-Natal 42.3  1.3  7.3  3.3  38.3  0.8  4.4  2.3  100.0
North West 52.2  0.8  0.2  5.7  37.7  0.4  0.0  3.1  100.0
Gauteng 42.5  1.9  1.5  9.8  34.2  1.9  0.9  7.2  100.0
Mpumalanga 47.8  0.3  0.5  4.7  42.9  0.1  0.1  3.6  100.0
Limpopo 54.5  0.2  0.5  1.8  41.3  0.1  0.2  1.5  100.0

Designated Employers:

Designated employers:
"designated employer" means-
(a) an employer who employs 50 or more employees;
(b) 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 the schedule 4 of the Act:

Turnover threshold:

 

Sector or subsectors 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

Designated Groups:

Designated groups:
This means black people, women and people with disabilities who are citizens of South Africa by birth or descent or became citizens of South Africa by naturalization –
Before 27 April 1994 or
After 26 April 1994 who would have been entitled to acquire citizenship by naturalization prior to that date but were precluded due to Apartheid policies
‘Black people’ is a generic term which means, Africans, Coloureds (Chinese) and Indians

Steps to compliance:
 

  • Assigning responsibility – senior manager
  • Consultation – communication and awareness
  • Planning – numerical goals, succession planning to achieve management and control representation.  A representative committee of the organization should be involved and devising and monitoring the EE plan.  
  • EE Plan – EEA13:
  • Section 19(1) of the EEA requires a designated employer to conduct an analysis as prescribed, of its employment policies, practices, procedures and the working environment in order to identify employment barriers which adversely affect people from designated groups.

Required reports for submission:

  • EEA2 – Report on current workforce and numerical goals
  • EEA4 – Income differentials between occupational levels
  • System opens for submission 1 September
  • Deadlines:
  • Manual submission 1 October
  • Online submission 15 January

Monitor and review plan – regular meetings are required

Related required documents:

  • Declaration by employee of race
  • EE policy
  • Appointments letters for senior managers and committee members
  • Employment equity constitution
  • Workforce representation analysis

Best practice policies

  • Code of good practice
  • Disability in the workplace
  • Performance management and job grading
  • Equal work for equal pay
  • Skills development
  • Recruitment and selection
  • Assessments and testing