It is Employment Equity submission season again, and as your trusted compliance partner, we endeavor to keep you updated with changing legislation.
The intention of the Employment Equity Act is to end unfair discrimination in the workplace. Compliance with the Act allows for the redress of previously disadvantaged groups within the organization and gives a voice to all employees, no matter the role they play. Overall, it aims to create an environment where all employees are given a chance to be heard and treated fairly, with transparency and order.
Changes to the Employment Equity Act
Designated Employers* are defined as those employing 50 or more employees, or if less than 50 employees, if the turnover exceeds the thresholds provided in the Act.
*This definition is currently under review and it is proposed that designated employers are those employing 50 or more employees – with no consideration for turnover.
The Department of Labour (DoL) recently announced a changed to the EEA4 submission form. With this change, came a few items worth noting:
- Employees are now being reported according to the highest earner and lowest earner per occupational group.
- The form also now analyzes the average and median remuneration as well as the remuneration gap.
A companies remuneration policy will play an important role in closing the vertical and horizontal gaps across occupational levels.
The DoL is placing greater importance on actively reducing disproportionate income differentials. Designated Employers can reduce the risk of non-compliance through analysis, policy review, amendments and drafting to define and measure remuneration procedures.
To comply with the Act, Designated Employers are required to:
- Display a summary of the Employment Equity Act, and any amendments in the workplace;
- Have the Employment Equity plan and the most recently submitted EE report available and communicated to all employees;
- Analysis of compliance against the Economically Active Population targets and Employment Equity plan targets;
- Analyze income differentials;
- Amend the Employment Equity plan to actively address the gaps and achieve targets;
- Reporting on Employment Equity plan and income differentials annually to the DoL.
National EAP targets for the 2019 submission
| TABLE 1: NATIONAL EAP BY POPULATION AND GENDER GROUP* | ||||||
| MALE | FEMALE | TOTAL | ||||
| AM | African Male | 42.8% | AF | African Female | 36.0% | 78,8% |
| CM | Coloured Male | 5.2% | CF | Coloured Female | 4.4% | 9,6% |
| IM | Indian Male | 1.7% | IF | Indian Female | 1.0% | 2,7% |
| WM | White Male | 5.1% | WF | White Female | 3.9% | 9% |
| 54,7% | 45,3% | |||||
Too much to do and too little time? Please contact angie@etconsult.co.za for assistance. We also have a range of solutions that we can help with – including EE training so you can leverage your EE to improve your B-BBEE status level and overall compliance. Book a free consultation with one of our consultants today.