Employment Equity (EE) is one of the most challenging and underestimated elements of transformation that South African employers face.
The window for Employment Equity reporting opened in September 2021, and the deadline for online submission is 15 January 2022.
All companies qualifying as Designated Employers need to submit Employment Equity reports to the Department of Employment and Labour (DoEL) annually. Designated Employers are:
- Employers who employ fifty 50 or more employees; or
- Employers who employ fewer than 50 employees, but have an annual turnover as reflected in Schedule 4 of the Employment Equity Amendment Act No.47 of 2013; or Municipalities and Organs of State.
Employers can also volunteer to become designated employers in terms of Section 14 of the EEA Act.
Whilst some employers take EE lightly, employers should be aware that they are bound to ensure that the content of the reports are accurate and true. They need to illustrate that they have made sufficient efforts to show progress made against their Employment Equity Plan (EEP). In difficult economic times like we have been experiencing, employers should, where appropriate, consult with their Employment Equity Forums and amend their EEPs. It is important to document the reasons for such changes and inform the DoEL of the company’s intent.
Contravention of the Employment Equity Act can lead to costly fines and in extreme cases, imprisonment. Companies also run the risk of being disqualified from scoring certain points on the B-BBEE scorecard and of being prevented from doing business with the state.
For any B-BBEE-related assistance, please contact the CORE BEE team.
Prepared by CORE BEE