Employment Equity – Annual EE report submission due by 1 October

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Employment Equity – Annual EE report submission due by 1 October

The Department of Labour has become more visible to ensure that organisations comply to the Employment Equity (EE) Act. The amendment to the Employment Equity Act, which was released in 2014, has far stricter penalties for Employers who don’t comply.

According to the EE Act, all companies that employ more than 50 employees and companies that employ less than 50 employees with an annual turnover exceeding the prescribed threshold must draft and submit Employment Equity Reports to the Department of Labour by 1 October annually.  The prescribed threshold for all industries are tabled below.

Sub Sector Total Annual Turnover
Agriculture R6.00m
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, social and personal services R15.00m

How can we assist you to become compliant

  • Facilitation of the process to complete EEA1 by all employees
  • Facilitation of the process required to establish an EE Committee
  • Development of the EEA2 and EEA4
  • Provision of the EEA3 forms/wall charts with summaries of the Act
  • Development of an Analysis report
  • Recommendations to Management regarding numerical goals & targets and EE Plan
  • Consultations with the EE Committee
  • Development of an EE Plan
  • Draft documents required to implement the process successfully
  • On-Line submissions of the EEA2 & EEA4 to the Department of Labour
  • Conduct Employment Equity Barrier Survey
  • Training of the Employment Equity Committee and/or all employees
  • Development and/or update of Human Resource policies and procedure for Employment Equity purposes

What are the benefits of becoming EE Compliant?

  • Ensure legal compliance and avoid huge fines (up to R2.7mil)
  • Increase your B-BBEE score by maximizing your points on the EE element of your scorecard
  • Fast track the process of creating a diverse workforce

Non-Compliance can lead to:

  • Fines starting at R1.5 mil or 2% of annual turnover up to R2.7mil or 10% of annual turnover
  • Imprisonment of the Managing Director/CEO and the Employment Equity Manager

This article is a general information sheet and should not be used or relied upon as professional advice. No liability can be accepted for any errors or omissions nor for any loss or damage arising from reliance upon any information herein. Always contact your financial adviser for specific and detailed advice. Errors and omissions excepted (E&OE)

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