Employment Equity – Compliance is the only answer

Employment Equity – Compliance is the only answer


The purpose of the Employment Equity Act, No 55 of 1998 is to achieve equity in the workplace by promoting equal opportunity and fair treatment in employment through elimination of unfair discrimination and implementing affirmative action measures to redress the disadvantages in employment experienced by designated groups, in order to ensure equitable representation in all occupational categories and levels in the workforce.

All employers who employ more than 50 employees or who have a turnover in excess of the amounts specified in the Employment Equity Act as stipulated below are legally obligated to comply with Chapter III of the Employment Equity Act.

New Thresholds, as stipulated below, came into effect on the 1st of August 2014.

Sector or sub-sectors in accordance with the Standard Industrial Classification Old Threshold – Total Annual Turnover New Threshold – Total Annual Turnover
Agriculture R 2,OO m R 6,OO m
Mining and Quarrying R 7,50 m R 22,5O m
Manufacturing R 10,00 m R 30,OO m
Electricity, Gas and water R 10,00 m R 30,OO m
Construction R 5,00 m R 15,OO m
Retail and Motor Trade and Repair Services R 15,00 m R 45,OO m
Wholesale Trade, Commercial Agents and Allied Services R 25,00 m R75,OO m
Catering, Accommodation and other Trade R 5,00 m R 15,OO m
Transport, Storage and Communication R 10,00 m R 30,OO m
Finance and Business Services R 10,00 m R30,OO m
Community, Social and Personal Services R 5,00 m R 15,OO m


As such these employers are required by law to submit statutory employment equity reports; compile and implement an employment equity plan; conduct employment equity and diversity awareness training, compile workforce profiles which are representative of designated employees (Africans, Indians, Coloureds, White Women and People with Disabilities) amongst the economically active population.

Failure to comply with the provisions of the Act will result in the Department of Labour going straight to the Labour Court to enforce compliance. The most controversial change is the value of the fines imposed on the employers that do not comply with the Act. Fines according to the Department can range from 2% to 10% of a company’s annual turnover.

All designated employers must, in terms of Section 21 of the Employment Equity Act of 1998 submit their annual report annually. The next reporting deadline for 2015 is the 1st of October 2015, if you submitted manually or by post. Reports cannot be submitted via e-mail or fax. The Department of Labour has also launched an Employment Equity Online Reporting System where reports can be submitted electronically.

Anka Marais is the Employment Equity specialist who will handle your EEA2 and EEA4 submission and Employment Equity Plan saving you time, money and stress.

Please contact Anka – anka@staffms.co.za as soon as possible for successful compliance regarding Employment Equity 2015/2016.


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