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Employment Equity

Business Meeting

Employment Equity Compliance: 

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Employment Equity is a legal requirement for all designated employers. The Employment Equity Act requires that Designated Employers take special measures to ensure that they comply with the Act. This is especially critical when companies plan to do business with the state. It is also crucial for companies who want to obtain points for BEE on their scorecard. 

The Employment Equity Act further requires that designated Employers not only report on Employment Equity yearly but also that companies break down the barriers to Employment Equity in a qualitative way in liaison with their employees. 

Many companies send reports to the Department of Labour but do not consult, inform or engage with their employees at all. Failing to take these actions will lead to the same fines as failing to report. Any failure to comply with the Act is viewed in the same light by the Department of Labour. 

A holistic approach to Employment Equity and diversity is required. Employment Equity becomes a strategic initiative that will lead to growth, innovation and sustainability. This involves a variety of actions and is an ongoing process.

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Employment Equity & B-BBEE/BEE:

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Transformation and BEE becomes a cornerstone of business success in the South African environment. Employment Equity plays a major role in the B-BBEE/BEE scorecard requirements. Employment Equity makes a significant contribution to the B-BBEE/BEE scorecard if implemented correctly. It flows into Management and Control ratings, skills ratings as well as ownership. 

An additional benefit is the Employment Tax Incentive (ETI), aimed at encouraging employers to hire young work-seekers.

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Consequences for non-compliance:

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  • Fines for non-compliance start at R1.5 million and increase if this is not your first contravention or up to 10% of the employer’s annual turnover (whichever is the greatest).

  • Not able to claim BEE points on the scorecard. 

 

Our services include: 

 

  • Employment Equity Compliance Audits 

  • Annual Employment Equity Report Submissions (EEA 2 and EEA4)

  • Employment Equity Analysis (EEA12)

  • Employment Equity Plan (EEA13)

  • Facilitation of Employment Equity Meetings and providing relevant documentation

  • Employment Equity Appointments (Committee and EE Senior Manager)

  • Employment Equity Training

  • Assisting with Labour inspections

  • Liaising with the Department of Labour

  • Employment Equity Policies and Procedures

  • Policy Audits, ensuring that all barriers to employment equity are eliminated

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