DON’T CONFUSE THE TWO

Last week l received a call from a colleague to confirm if this statement is correct ‘’Companies with 50 or more employees must submit WSP and ATR reports”. My answer was NO do not confuse B-BBEE requirements for Employment Equity and the Skills Development Act.


Often there is a misinterpretation on B-BBEE requirements on the above mentioned two Acts be it turnover thresholds, payroll, or the number of employees.


For a Measured Entity to score points under management control the Measured Entity must comply with the Employment Equity Act provided the company has 50 or more employees or the turnover threshold is above what is stated on schedule 4 of the Employment Equity Act. Payroll thresholds are not applicable. Implications for non -compliance with the Employment Equity Act attracts a hefty fine from the Department of Employment and Labour besides losing points on management control.


A company with an annual payroll of R500 000 must comply with the Skills development Act. Turnover thresholds and number of employees are not applicable as requirements to comply with the Skills Development Act. Furthermore, submission of WSP and ATR reports must be done to be awarded points on Skills development element for B-BBEE.WSP and ATR reporting window for different SETAs is now open and closing on the 30th of April 2021.


Companies must pay attention to B-BBEE, Employment Equity and Skills development compliance as they are inter-twined.


If you need assistance with compliance on the three acts, please do contact us and get a professional advice from our team of consultants.


Article By:

Rumbi Vashoma: EE and Skills Development Consultant - Compliance Hub

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