EMPLOYMENT EQUITY COMPLIANCY

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WHO NEEDS TO COMPLY?
All South African based employers with more than 50 permanent or temporary employees.
WHAT IS COMPLIANCY?
Compliancy requires the implementation of an Employment Equity Plan to address over or under representation of historically under represented groups . Annual progress reports also need to be filed.

WHY MUST I COMPLY ?

FINES
Failure to comply may render your company liable to fines of up to R900 000-00 or a percentage of turnover.

B-BBEE POINTS
No BEE points will be awarded for the Employment Equity element if you have not complied in full.
(This may be worth up to 25 B-BBEE points)

GOOD CORPORATE CITIZENSHIP
By submitting an annual report and staying compliant your company

gains credibility
shows a commitment to transformation
gains points on the BEE scorecard and
has better tender prospects.

ANNUAL CERTIFICATE OF COMPLIANCE

Companies doing business with the State or State owned enterprises will need to furnish a certificate of compliance on an annual basis to show that they have complied with the requirements of Employment Equity.

LATEST NEWS: 16 November 2024

There is an important update regarding the Employment Equity Amendment Act and the proposed regulations which were passed in 2023 but never proclaimed.

While there has been no formal communication from the Department of Employment and Labour (DOL) at this stage, we have noticed law firms commenting on this and also received confirmation of the existence of GG 51684 for Proclamation 231 of 2024- see attached .

This announces the of the commencement date for the new regulations and Act as being the 1st of January 2025.

No new sector targets- which form the basis for the new regime - have been published.
No further guidance has been received dealing with transitional arrangements/periods or any other detail save those below.

Key Changes and the implications for Employers:

Redefinition of a “Designated Employer”:
Companies with fewer than 50 employees will no longer be classified as designated employers and will not need to comply with Chapter 3 (Affirmative Action Measures). However, they must confirm their status by demonstrating their employee count and must still maintain compliance with Chapter 2, which focuses on promoting equal opportunities and eliminating unfair discrimination.
Five-Year Sectoral Targets:
Targets are/will be set by government for each of the following occupational and skills levels : Top Management, Senior Management, Middle Management/Professionally Qualified, Junior Management/Skills Technical, and people with disabilities. Employers can still set targets for Semi-Skilled and Unskilled levels. None of the sectoral targets have been published as yet but we anticipate them being released in 2025. Once published, these targets must be met within a 5 year period by way of predetermined affirmative action strategies and meeting yearly targets.
Certification of Compliance:
Designated employers must obtain a compliance certificate to conduct business with the state, as stipulated in the amendments. Even non designated employers will need this on an annual basis

Once we get the official implementation guidelines and formal communication on how to practically apply the amendments, we will be in a position to assist and guide you through each step of this transition.

In the interim, please note that all designated employers are still required to submit their Employment Equity (EE) reports for the 2024 reporting period as per existing regulations.