The Employment Equity Act exists to redress disadvantages in employment previously experienced by designated groups through the elimination of unfair discrimination and implementation of affirmative action measures.
The Employment Equity Act must be complied with by designated employers. As part of compliance Employment Equity reports must be submitted.
Reports to be submitted must be based on the Employment Equity plan after doing an analysis of the workforce profile, policies and practices. The plan and the analysis are developed in consultation with the Employment Equity committee. Consultation with the committee must be done quarterly or monthly and records that the meeting took place must be kept.
Employment Equity Act works hand in hand with management control B-BBEE element. A measured entity cannot score points on the management control element if they fail to submit Employment Equity reports.
As evidence that Employment Equity reports have been submitted additionally an acknowledgment letter from the Department of Labour must be presented to the verification agency.
Employment Equity reports are submitted on a yearly basis on the Department of Employment Labour portal between the period of the 1st of September to 15 January the following year for online reporting. For manual submission the window closes on the 1st of October every year the window having opened on the 1st of September.
If a designated employer fails to submit Employment Equity report, the Director-General may apply to the Labour Court to impose a fine and this can bankrupt the company. It is not only failure to submit the reports that attracts fines, but the reports must also be accurate showing progress of the Employment Equity plan. Imposed fines depends on how far the company has contravened the Employment Equity Act.
Employers who have previously submitted Employment Equity reports, but the number of employees is now below 50 or the company’s turnover is below the Employment Equity turnover threshold can apply for de-registration. De-registration application must reach the Department of Employment and Labour by 31 August each year.
If you need assistance on submitting Employment Equity reports or any issue pertaining to Employment Equity, please do contact us.
Rumbi Vashoma: SDF and EE Consultant - Compliance Hub