Employment Equity in South Africa

The Employment Equity act is an employment policy that applies to all employers and workers which protects workers and job seekers from unfair discrimination.

The Employment Equity plan also provides a framework for implementing Affirmative Action.

What is the Employment Equity Act?

When Must Employers Complete their Employment Equity Report?

Employers with less than 150 workers must send their reports

within 12 months after they become employers; and thereafter
every year ending with an even number.

Employers with more than 150 workers must send their Employment Equity reports

within 6 months after they become employers; and thereafter
every year on the first working day in October.

Based on Legislation in Section 21, of the Employment Equity Act

Basic conditions of Employment Equity Act

Turnover Threshold Applicable to Designated Employers

(Schedule 4 of the Employment Equity Act)

Sector or sub-sectors in accordance with the Standard Industrial Classification	Total Annual Turnover
Agriculture	R2m
Mining and Quarrying	R7.50m
Manufacturing	R10.00m
Electricity, Gas and Water	R10.00m
Construction	R5.00m
Retail & Motor Trade & Repair Services	R15.00m
Wholesale trade, Commercial agents and Allied Services	R25.00m
Catering, Accommodation and other Trade	R5.00m
Transport, Storage & Communications	R10.00m
Finance & Business Services	R10.00m
Community, Special & Personal Services	R5.00m

Maximum Permissible Fines that may be imposed for Contravening the EE Act

Previous Contravention	Contravention of any provisions of Section 16, 19, 20, 21, 22 and 23
No previous contravention	R500 000
A previous contravention in respect of the same provision	R600 000
A previous contravention within the previous 12 months or 2 previous contraventions in respect of the same provision within 3 years	R700 000
Three (3) previous contraventions in respect of the same provisions within 3 years	R800 000
Four previous contraventions in respect of the same provision within three years	R900 000

The report must have all the necessary information and be signed by the Chief Executive Officer.
Based on Legislation in Section 21, of the Employment Equity Act

Employers Who Cannot Report

Employers who cannot report must let the Department know in writing and give reasons.
Based on Legislation in Section 21, of the Employment Equity Act

Forms to be completed

EEA2 - A report to the Department of Labour on staff compliment and then the movement in the company which include promotions, terminations, recruitments etc. This effectively details how employment processes work in your company and if affirmative action measures are being taken where applicable.

EEA4 - An income differentials document. Reporting on ALL salaries in the company. This form details if there are any discrepancies in your company relating to salaries and the reasons therefore if there are any.

Let VCA help you with your Employment Equity Report

At VCA we know the administrative side of the Employment Equity Act can be extremely daunting and we therefore offer a service to help you with your affirmative action policy.

VCA offers the following services:

Information gathering and completion of EEA2 and EEA4 forms which will then be hand delivered and signed for by the Department of Labour
Summary and recommendations for your company
VCA will draft an Employment Equity Plan for the company and should it be necessary we will assist in the implementation of this including setting up the Employment Equity committee
Policies and procedures. VCA can assist in perusing and developing policies should this be necessary.

Click here to request more information or for a quotation