EMPLOYMENT EQUITY

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WHY EMPLOYMENT EQUITY?

A walk through everything you need to do to implement Employment Equity (EE) in your organisation

Key Changes

Employment Equity Amendment Act sets the threshold for being a designated employer primarily on having 50 or more employees. Previous turnover-based thresholds were removed.

Companies with Fewer Than 50 Employees

These businesses are generally not designated employers and are not required to submit EE plans and annual EE reports. However, they must still comply with the Act's provisions prohibiting unfair discrimination and promoting equal opportunity in the workplace.

Companies with 50 or More Employees (Designated Employers)

These employers must generally:

Implement affirmative action measures.
Conduct a workplace analysis to identify barriers for designated groups.
Develop and implement an Employment Equity (EE) Plan.
Consult employees or an EE committee on the plan and reports.
Report annually to the Department of Employment and Labour.
Work toward sector-specific employment equity targets.
Maintain records demonstrating compliance.

Financial Penalties

Employers that fail to comply with the Employment Equity Act may face enforcement action, including Labour Court proceedings and fines. Recent commentary on the amended Act indicates that penalties can reach up to 10% of annual turnover in certain cases of non-compliance

The guide is organised into five phases that follow the order in which you should work:

Phase 1 — Preparation and Appointment
Phase 2 — Consultation and the EE Committee
Phase 3 — Workplace Analysis
Phase 4 — The Employment Equity Plan
Phase 5 — Reporting and Submission

Each phase includes: a plain-language explanation of why the step is legally required and what it achieves; a step-by-step explanation of how to do it; a worked example; and a checklist of documents to keep in your EE file.