It is that time of year again and Employers who are considered designated have to submit their Employment Equity reports to the Department of Labour. The system is accessible each year from 1 September 2019 to 15 January 2020 the following year. This system is yet to open this year and the reason may be the vast amendments that have been Gazetted in terms of the EEA4 report where Employers state their income differentials. The Department has indicated that the system may become available on the 11th of September 2019. More detail is required to assist the Department with the monitoring of Equal work for equal pay as well as the National Minimum Wage Act.
The following changes need to be kept in mind – each company will be expected to report on the following:
• fixed vs variable remuneration
• inclusions, exclusions and conditions
• median, mean and range calculations
• overall wage gap from lowest to highest paid
• inclusion of temporary employees
• existence of remuneration and equal treatment policy and alignment of remedial action
These amendments place emphasis on adherence to Equal work for equal pay. The only way to achieve this is through formal and objective job grading. Paterson is suggested since it falls in line with grading scales and reporting that is used by the Department of Labour.
Cindy Jordaan HR & EE Consultant – Compliance Hub