1. Compliance with the Employment Equity Act, 55 of as amended by the Employment Equity Amendment Act, 47 of 2013

2. to achieve equity in the workplace
PURPOSE OF THE EE ACT s2
to achieve equity in the workplace BY
promoting equal opportunity and fair treatment in employment through the elimination of unfair discrimination
implementing affirmative action measures to redress the disadvantages in employment experienced by designated groups, to ensure their equitable representation in all occupational categories and levels in the work
Designated Groups” mean black people, women and people with disabilities who –
Are citizens of the Republic of South Africa by birth or descent: or
Became citizens of the Republic of South Africa by naturalisation –
Before 27 April 1994;
After 26 April 1994 and who would have been entitled to acquire citizenship by naturalisation prior to that date
but who were precluded by apartheid policies.
This effectively means that affirmative action measures do not apply to anyone who falls outside this definition.
The implementation of affirmative action measures will have an impact on a company’s B-BBEE scorecard.

3. WHO MUST COMPLY WITH THE EE ACT?
All employers and employees must comply
with certain provisions whilst additional
provisions apply to designated employers
DESIGNATED EMPLOYER
Schedule 4 of the EE Act
an employer who employs 50 or more employees, or
an employer that employs fewer than 50 employees but has a total annual turnover as reflected in Schedule 4 of the Act,
organs of state except local spheres of government, the National Defence Force, the National Intelligence Agency and the South African Secret Service.
a municipality
an employer bound by a collective agreement in terms of s23 or 31 of the LRA, which appoints it as a designated employer in terms of the EE Act.
EMPLOYERS CAN ALSO VOLUNTEER TO BECOME DESIGNATED EMPLOYERS
SECTOR
TOTAL ANNUAL TURNOVER
Agriculture
R million
Mining and Quarrying
R22.5 million
Manufacturing
R million
Electricity, Gas and Water
Construction
R million
Retail and Motor Trade and Repair Services
R million
Wholesale Trade, Commercial Agents and Allied Services
R million
Catering, Accommodation and other Trade
Transport, Storage and Communications
Finance and Business Services
Community, Special and Personal Services

4. PROHIBITION OF UNFAIR DISCRIMINATION
s6 of the Act protects an employee against unfair discrimination in the workplace.
Employers are not allowed to discriminate, whether fairly or unfairly, directly or indirectly, against an employee, in any employment policy or practice, on one or more of the following grounds : race, gender, sex, pregnancy, marital status, family responsibility, ethnic or social origin, skin colour, sexual orientation, age, disability, religion, HIV status, conscience, belief, political opinion, culture, language or birth.
A difference in terms and conditions of employment between employees of the same employer performing the same or substantially the same work or work of equal value that is directly or indirectly based on any one or more of the grounds listed above, is unfair discrimination.
Harassment of an employee is a form of unfair discrimination and is prohibited on any one, or a combination of grounds of unfair discrimination listed above.
Employers are not allowed to require employees to undergo:
Medical tests unless legislation allows or requires it (s7).
Psychometric testing and similar assessments, if such tests do not comply with certain prescribed requirements (s8).
It is not unfair discrimination to :
take affirmative action measures consistent with the purpose of this Act; or
distinguish, exclude or prefer any person on the basis of an inherent requirement of a job.
Temporary employment services (TES) persons are regarded as employees
For purposes of sections 6, 7 and 8, an "employee"; includes an applicant for employment.

5. DUTIES OF A DESIGNATED EMPLOYER
All employers must (whether designated or not) :
Promote equal opportunities in their workplaces.
Eliminate unfair discrimination in all their employment policies and practices.
In terms of s13, a designated employer must implement affirmative action measures for designated groups to achieve employment equity.
A Designated Employer must:
Take reasonable steps to consult with employees representing the diverse interests of the workforce and reach agreement. If the company is unionised, consultation should be with the relevant trade union(s) . If the company is not unionised, employees can nominate persons to represent them. Consultation can also take place directly with the workers themselves. The party with whom consultation takes place must reflect the interests of employees from all occupational categories and levels of the workforce including employees from both the designated and non - designated groups.
Carry out an analysis of employment policies, practices, procedures, and working environment so as to identify employment barriers that adversely affect members of designated groups. The analysis must identify employment barriers that adversely impact on persons from the designated groups The analysis must also include the development of a profile of the workforce within each occupational category and level to determine the under-representation of persons from the designated groups.
On completion of the analysis, compile an Employment Equity Plan. The plan must achieve reasonable progress towards employment equity in the employer’s workplace.

6. DUTIES OF A DESIGNATED EMPLOYER (cont)
A Designated Employer must also:
In terms of s27, prepare and submit, to the Employment Conditions Commission (ECC), a statement (as prescribed in the Basic Conditions of Employment Act) on the remuneration and benefits received in each occupational category and level in that employer’s workforce; and
Take measures to progressively reduce disproportionate income differentials or unfair discrimination in terms and conditions which are reflected in the aforementioned statement to the ECC.
Annually, report to the Director General : Labour on progress made with the implementation of the Employment Equity Plan.
Display a summary of the Employment Equity Act and give workers access to relevant plans and reports.
Disclose all relevant information to the consulting parties that will allow effective consultation to take place.
Assign one or more senior managers to ensure implementation and monitoring of the Plan and must make available necessary resources for this purpose (s24).
Establish and maintain records concerning the workforce, the Employment Equity Plan and other records needed for compliance with the legislation. This would include records relating to the implementation of the objectives identified in the Employment Equity Plan, allegations made by employees and action taken to remedy gaps.
Use the records in preparing the Reports for submission to the Director-General : Labour.

7. DUTIES OF A DESIGNATED EMPLOYER (cont)
In summary, in order to implement affirmative action measures, a designated employer must:
Consult with Employees
s16
Conduct an Analysis
s19
Prepare an
Employment Equity Plan
s20
Report to the DG: Labour, annually on progress made with the implementation of the EE Plan
s21

8. WHAT MUST AN EE PLAN INCLUDE?
The plan must include:
Objectives to be achieved for each year of the plan.
Affirmative action measures to close the gaps identified during the consultation process.
Numerical goals to achieve equitable representation of suitably qualified persons in each occupational category and all levels in the workforce.
Strategies and a timetable for achieving the goals identified.
A timetable for each year of the plan for achieving the other goals (not numerical)
The duration of the plan
Procedures to monitor and evaluate implementation of the plan which will identify whether or not reasonable progress is being made in achieving the goals.
Internal procedures to resolve disputes that may arise regarding implementation and interpretation of the plan
The persons responsible for monitoring and implementing the plan. This must be one or more senior managers who will supervise and implement the Plan and who must be given the power and resources to so. The employer must ensure that the managers carry out their duties. The assignment of the responsibilities to a manager does not relieve the employer of any duty imposed by the legislation – i.e. irrespective of steps taken the employer remains the responsible person.
NB: The plan must be not shorter than one year or longer than five years.
Prior to the current Employment Equity Plan reaches the end of its time frame a “subsequent” plan must be drawn up.

9. WHAT IS REQUIRED IN TERMS OF IMPLEMENTING THE EE PLAN?
Implementation measures taken, by a designated employer, must ensure that suitably qualified people from designated groups have equal employment opportunities and are fairly represented in all occupational categories and levels in the workforce. The measures must include those that:
Identify and eliminate employment barriers, including unfair discrimination that adversely impacts on people from the designated groups.
Are designed to further diversify employment in the workplace based on equal dignity and respect of all people
Reasonably accommodate people from designated groups to ensure that they enjoy equal opportunities and are equitably represented in the workforce.
Ensure that suitably qualified persons from the designated groups are equitably represented in all occupational categories and at all levels in the workforce.
Retain and develop persons from designated groups by implementing appropriate training measures which includes skills development
Take specific measures to reduce any income differentials, including adherence to collective bargaining outcomes, compliance with sectoral determinations and applying norms and benchmarks set by the Employment Conditions Commission.
NB: While the measures should include preferential treatment and numerical goals, they should exclude quotas.

10. WHEN MUST EE REPORTS BE SUBMITTED?
It is a statutory requirement that designated employers, after submission of their EE Plan, must annually submit a number of statutory reports.
In terms of Chapter III of the Employment Equity Regulations, 2014:
A designated employer (irrespective of size) must submit a report to the Director – General : Labour, annually, on the first working day of October (in the case of manual submissions) or by 15 January, the following year, in the case of electronic submissions.
All relevant areas of the forms must be fully and accurately completed by employers. Designated employers who fail to do this will have their reports rejected.
The reports must be signed by the CEO of the company.
Employers are legally bound to ensure that the report's contents are true and correct and that they can show that they have made sufficient progress with affirmative action in the staffing of their organisations as required by the EEA.
In terms of a provision introduced by the amendment Act, employers who are unable to submit a report on time must notify the Director-General by the first working day of October that it will be unable to submit the EE Reports on time and provide reasons as to why it is unable to do so.

11. POWERS OF EMPLOYEES AND TRADE UNION REPRESENTATIVES
Employees and trade union representatives have the power to bring contraventions of the legislation to the attention of other employees, the employer, a trade union, a workplace forum, the Director-General: Labour or the Commission for Employment Equity that is established by the Act.
No one may discriminate against an employee who exercises his / her rights or prevent an employee from exercising them. The Act protects employees who exercise their rights and obligations under the Act against victimization, obstruction or undue influence.
If an employee contravenes any provision of the Act, while performing his or her their duties, the employer is liable unless he or she can prove that everything possible was done to prevent it

12. CONSEQENCES OF NON COMPLIANCE WITH THE EE ACT
If an employer fails submit a report, fails to notify and give reasons for being unable to submit the report or such reasons are false or invalid, the Director-General may apply to the Labour Court to impose a fine.
The fines that may be imposed on an employer who fails to comply with its reporting obligations has been increased by the amendment act. The fines applicable, or non-compliance, are as follows:
The Labour Court has exclusive jurisdiction to determine any dispute about the interpretation or application of the EEA. It also has the power to make any order and impose a fine if an employer fails to submit an EE Report on time. If an employer fails to comply with its reporting obligations, a fine can be imposed by the Labour Court on application by the Director-General.
The fines above are, however, the maximum fines that may be imposed by the court. The EEA gives the Labour Court the power to make “any appropriate order”.
It must be noted that the EEA does not contain any provision allowing the Director-General or the Labour Court to condone non- filing of EE reports. As a consequence, an employer who is obliged to submit an EE report but fails to do so on time may be subject to a fine, the extent of which will be determined by the Labour Court and the EEA.
Previous contravention
Amount
No previous contravention
The greater of R or 2% of turnover
One previous contravention
The greater of R or 4% of turnover
A previous contravention within the previous 12 months or two previous contraventions within three years
The greater of R or 6% of turnover
Three previous contraventions within three years
The greater of R or 8% of turnover
Four previous contraventions within three years
The greater of R or 10% of turnover

13. POWERS OF LABOUR INSPECTORS
Labour inspectors have the power to:
Inspect the premises of employers and determine compliance with the employer’s Employment Equity Plan
Obtain a written undertaking from the employer to comply within a specified period if it believed that the plan is not being complied with.
Issue a compliance order if the employer refuses to give a written undertaking.
During the 2015 reporting period, the Department inspected several companies with negative results. In 2015, the Department of Labour took 1400 of South Africa’s medium to large corporations to the Labour Court for not complying with the EE Act ( employment-equity-law-8291.html)
In 2017, the Minister of Labour, Mildred Oliphant said more than 21 companies have been fined for not complying with the Employment Equity Act and several others were on the verge of being fined ( report/companies/companies-fined-for-violating-employment-equity-act )
COSATU, in 2017, described the 17th Employment Equity Report as depressing and called on the Department of Labour’s inspectorate to improve its work in enforcing compliance ( noncompliant-companies-says-cosatu/)

14. ASSISTANCE IN COMPLYING WITH THE EEA
Seshni Consulting, through its network of highly trained and qualified consultants, can save you time, money and stress by assisting you with the following services, to enable you to comply with the EEA:
Facilitation of the process to establish your Employment Equity Consultative Forum, including the formulation of Terms of Reference.
Training your employees on the requirements of, and obligations in terms of, the EEA.
Conducting an analysis of employment policies, practices, procedures, and working environment aimed at identifying employment barriers that adversely affect members of designated groups.
Formulating recommendations to eliminate identified barriers and implementing measures directed at making reasonable accommodation for people from designated groups, for example, people with disabilities.
Development of an Affirmative Action Policy.
Development of a profile of the workforce within each occupational category and level to determine the under-representation of persons from the designated groups.
Determination of numerical targets and goals in line with demographics and job market demand and supply.
Compilation of your EE Plan and / or reviewing your EE Plan to ensure alignment with reports and progress and continuity with previous plans.

15. ASSISTANCE IN COMPLYING WITH THE EEA (cont)
Preparation and submission, to the Employment Conditions Commission (ECC), a statement on the remuneration and benefits received in each occupational category and level in that your company’s workforce.
Recommending appropriate measures to progressively reduce disproportionate income differentials or unfair discrimination in terms and conditions which are reflected in the aforementioned statement to the ECC.
Maintenance of records relating to the workforce, the Employment Equity Plan and other records needed for compliance with the legislation.
Reporting (manually or electronically) to the Director General : Labour on progress made with the implementation of the Employment Equity Plan
Attendance of Employment Equity Consultative Forum Meetings to, inter alia, provide advise and present progress reports, to stakeholders, relating to the implementation of the EE Plan.
Skills development of designated groups to facilitate their advancement within the workforce.
Recruitment and selection of suitably qualified and experienced persons from designated groups to meet numerical goals.

16. AN OVERVIEW OF THE ASSISTANCE THAT SESHNI CONSULTING CAN PROVIDE TO YOU IN TERMS OF COMPLIANCE WITH THE EEA
Assistance with the establishment and functioning of the EE Committee
Conducting training on the EEA
Conducting an analysis of employment policies, practices, procedures, and working environment to identify employment barriers that adversely affect members of designated groups
Development of an Affirmative Action Policy
Compilation / Review and submission of EE Plan
Reporting to the DG:Labour on progress made with the implementation of the Employment Equity Plan & Employment Conditions Commission (statement on the remuneration and benefits received)
Maintenance of records relating to the workforce and EEA
Skills development of designated groups to facilitate their advancement within the workforce
Recruitment and selection to meet numerical goals

17. ADVANTAGES OF COMPLYING WITH THE EEA
CONCLUSION
By complying with the Employment Equity Act, you will :
Ensure legal compliance.
Avoid fines of up to R2.7m or 10% of your turnover.
Increase your B-BBEE (Broad Based Black Economic Empowerment) score by maximising your points on the Employment Equity element of the scorecard.
Fast track the process of creating a diverse workforce.
ADVANTAGES OF COMPLYING WITH THE EEA
IS LOOKING FORWARD TO ASSISTING YOU WITH YOUR EMPLOYMENT EQUITY STATUTORY OBLIGATIONS