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Employment Equity Act

are you a designated employer?

It's that time of the year again when employers are required to submit their Employment Equity and their Workplace Skills Plan reports to the Department of Labour.  

Reporting season opened on 01 September 2021 with Manual Reporting closing on 01 October 2021 and Online Reporting closing on 15 January 2022.

Reports comprise of two forms:
A) Employment Equity Report Form (EEA2) 
B) Income Differential Statement (EEA4).
These can be submitted electronically on or by hand to any labour centre.

Who needs to submit a Skills & Equity Report?
•    All designated employers with 50 or more employees.
•    Employers with fewer than 50 employees who are designated in terms of the turnover threshold applicable to designated employers – Schedule 4 of the Employment Equity Amendment Act No. 47 of 2013 

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What happens if I don’t comply?
Should a “designated employer” fail to comply with these obligations, the fine for the first offence is:
•    R1.5 million or 10% of the employer’s annual turnover (whichever is the greatest); and/or
•    10 years imprisonment

The Employment Equity Report:
All designated employers are required by law to submit an Employment Equity Report and be in possession of an Employment Equity Plan. 

The Workplace Skills Plan:
A Workplace Skills Plan is a document that details all the company’s skills needs and describes the range of skills development interventions that the organisation will use to address these needs. A WSP enables the employer to identify and arrange for the improvement of training to address the skills gaps within an organisation.

What has to be included in the plan?

Employment equity plans must show:
•    Socio-Economic Development.
•    objectives for every year
•    affirmative action measures that will be implemented
•    where black people, women and people with disabilities are not represented:
o    numerical goals to reach this
o    timetables
o    strategies

•    timetables for annual objectives
•    the duration of the plan (not shorter than a year or longer than five years)
•    procedures that will be used to monitor and evaluate the implementation of the plan
•    ways to solve disputes about the plan
•    people responsible for implementing the plan

How do employers go about achieving employment equity?
Employers must draw up an employment equity plan, setting out the steps they intend taking to achieve employment equity, over the next one to five years. To do this, they need to analyse their workforce profile as well as their employment practices and policies.  

No doubt, a formidable mountain to climb, and one possibly not to try on your own for the first time. If you need assistance, hit the button below so that we can get your Skills Plan in on time.

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