October 9, 2017

Employment Equity Reporting Season is Upon Us

employment equity Andrew Butters

The Employment Equity (EE) reporting season is upon us, with the manual submissions due on 2 October 2017 and the electronic submissions due in the middle of January 2018, 15 January 2018, as has been the past practice.

  1. Who Must Submit EE Reports?

Any employer who wishes to make a voluntary submission may submit an annual EE report.  Any employer who, in terms of the Employment Equity Act is a designated employer, must submit a report on an obligatory basis.   A designated employer is an employer who:

  1. employs 50 or more employees; or
  2. who employs fewer than 50 employees, but has a total annual turnover that is equal to or above the annual turnover threshold specific to the relevant sector. The threshold table is detailed below.
Sector Total annual turnover
Agriculture R6.0m
Mining and Quarrying R22,50m
Manufacturing R30,00m
Electricity, Gas and Water R30,00m
Construction R15,00m
Retail and Motor Trade and Repair Services R45,00m
Wholesale Trade, Commercial Agents and Allied Services R75,00m
Catering, Accommodation and other Trade R15,00m
Transport, Storage and Communications R30,00m
Finance and Business Services R30,00m
Community, Special and Personal Services R15,00m

What are the Duties of a Designated Employer?

According to the EE Act, every Designated Employer must:

  1. Implement Affirmative Action Measures for people from Designated Groups in terms of the Act
  2. A Designated Employer must also:
    • Consult with its employees – As required by Section 16 of the Act
    • Conduct an analysis – As required by Section 19 of the Act
    • Prepare and Employment Equity Plan – As required by Section 20 of the Act
    • Report to the Director-General on progress made in implementing its Employment Equity Plan – As required by Section 21 of the Act

What do I need to do if I am a designated employer and I have not complied?

It is important that the employer starts to put the correct measures in place immediately.  The Department of Labour is entitled to visit any employer without notice in order to conduct an Employment Equity inspection.  This inspection is an inspection of the employer’s facility to determine whether it complies with all aspects of the Employment Equity Act.

Should the employer not be compliant, it can be issued with a fine of a minimum of R 1,5 million or a percentage of the turnover for a first offence.

What do I need to do if I am no longer a designated employer?

If the employer has previously reported but its turnover no longer meets the turnover thresholds, the employer should deregister from the public register.

Andrew Butters, motivational speaker, Inspiring Performance, can be contacted on his email address should you wish to have your employment equity practices brought in line with the Act.

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