I recently heard a discussion about annual Employment Equity reporting. I am not sure if this applies to my business. Please can you assist me with guidelines in this regard?
The Employment Equity Act 55 of 1998 (‘the Act’) came into effect in 1998. The purpose of the Act is to:
- promote equal opportunity and fair treatment in employment through the elimination of unfair discrimination;
- implement action measures to redress the disadvantages in employment experienced by designated groups and;
- ensure equitable representation in all occupational levels in the workforce.
All businesses qualifying as a ‘designated employer’ must, in terms of Section 21 of the Act, complete and submit their Employment Equity Reports (EEA2 & EEA4) annually, to the Department of Labour. These reports need to be submitted during the annual submission period that opens on 1 October until 15 January each year, in the case of electronic reporting. Businesses can register for online Employment Equity reporting on the Department of Labour's website.
Employers who become designated on or after the first working day of April, but before the first working day of October each year, are only required to submit their first report during the submission period of the following year.
A designated employer is any employer with 50 or more employees OR an annual turnover above the specified industry threshold, as follows:
Industry
|
Threshold
|
Agriculture
|
R6 million
|
Construction; Community, Special and Personal services; Catering, Accommodation and other Trade
|
R15 million
|
Mining and Quarrying
|
R22.5 million
|
Manufacturing; Finance and Business services; Transport, Storage and Communications; Electricity, Gas and Water
|
R30 million
|
Retail, Motor trade and Repair services
|
R45 million
|
Wholesale trade, Commercial agents and Allied trades
|
R75 million
|
Should a designated employer fail to comply with the relevant provisions of the Employment Equity Act, the Department of Labour may issue fines ranging between R1.5 million or 10% of the business’ annual turnover (whichever is the greatest) and / or 10 years imprisonment, for a first offence.
It is advisable for all business owners whose businesses might qualify as designated employers to contact their advisors or consultants for advice and assistance with this process.