WHAT IS EMPLOYMENT EQUITY?
Employment Equity
The Employment Equity Act 55 of 1998 was established to address unfair discrimination in the workplace by promoting equal opportunities and fair treatment for all. This is done by implementing affirmative action measures to redress the disadvantages of the past.
WHEN SHOULD A COMPANY COMPLY WITH THE ACT?
According to the EE Act, a company is a designated employer and should comply with the Act when:
- The company has 50 or more employees or
- The company has less than 50 employees but has an annual turnover equal to or above the industry limit as per the table below
Sector of subsectors in accordance with | 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, Special and Personal Services | R15.00m |
WHAT ARE THE BENEFITS OF BEING COMPLIANT?
Not only can you use Employment Equity as a tool to diversify your workforce, but you can increase your company’s BBBEE score as EE is one of the elements on the scorecard. It will also eliminate the possibility of fines being imposed on your company by Department of Labour.
IMPLICATIONS OF NON-COMPLIANCE
Employment Equity is legislated and Department of Labour ensures compliance with the EE Act. Non-compliance can lead to fines being imposed on the company, the minimum fine being R1,5m or 2% of annual turnover, which ever one is greater.
