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NEW EMPLOYMENT EQUITY AMENDMENT ACT REGULATIONS EXPLAINED BY COMPLIANCE HUB CONSULTING

South African employers, be aware.

 

The Department of Employment and Labour's draft regulations for the Employment Equity Amendment Act are open for public comment until May 2nd, 2024. Understanding these changes is crucial for ensuring your business remains compliant.

 

Background: Employment Equity Amendment Act

 

  • Signed into law by President Ramaphosa in April 2023.

  • Aims to accelerate transformation in the workplace through sectoral numerical targets.

  • These targets apply to designated employers (businesses with over 50 employees).


Key Changes Introduced by the Draft Regulations

 

Sectoral Numerical Targets:

  • Detailed explanation of how these targets were developed is provided.

Developing Employment Equity Plans (EE Plans):

  • Employers must consider current workforce profile, relevant sector targets, and national/provincial EAP data (depending on business location).

  • Set annual numerical targets for each occupational level over a 5-year period.

  • Prioritize meeting sector targets, then applicable EAP data.

  • Do not set targets for groups already exceeding EAP representation.

  • Maintain or improve upon previously achieved targets.

  • Set annual targets for upper occupational levels (Top Management, Senior Management, etc.) with specified sector targets.

  • Continue setting annual goals for lower occupational levels (Semi-Skilled, Unskilled) even without sector targets.

National vs Provincial EAP:

  • National EAP applies to businesses operating nationally.

  • Provincial EAP applies to businesses operating within a specific province.

  • Employers with multi-provincial operations can choose the EAP of the province with the majority of employees.

Racial Designations:

  • African, Coloured, and Indian are consolidated into "designated group" with differentiation for male and female.

  • Employers must still differentiate between racial groups within their annual targets and consider EAP data.


Compliance Considerations

 

  • The EAP is just one factor in assessing employer compliance.

  • No absolute barriers can be placed on employment based on race.

  • Guidance is provided on assessing compliance, justifiable grounds for not meeting targets, and avoiding penalties.

  • Unjustified non-compliance can result in penalties and hinder obtaining an Employment Equity Compliance Certificate (needed for government contracts).


Take Action!

 

Carefully review the draft regulations ([link to the regulations ON Department of Employment and Labour (. gov.za) dol.gov.za]) and submit your comments before the May 2nd deadline. Compliance Hub Consulting can assist you in understanding the implications for your business and ensuring a smooth transition under the new regulations. Contact us today!

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