Employment Equity Compliance
Introduction
The EE Act and in particular Section 21 stipulates that all designated employers are obligated to
submit their Employment Equity (EE) reports (EEA2 and EEA4 Forms). It entails submission of
goals and targets and compliance thereof for the period under review. Companies that fail submit
these EE reports timeously may be fined.
Reporting to the Department of Labour
- Submit a form EEA 2 (Employment Equity Report) to the Department of Labour during the
last reporting year: – every year for large employers (50 or more employees and based on
turnover)
- Submit your report on or before the due date: – 15th January of each year.
- Receive an official Department of Labour receipt with reference number.
- Submit an Income Differential statement (form EEA4) to the Employment Equity
Commission.
- Archiving of documentation: Reports submitted must be kept for 3 and 2 years after
submission by large employers and small employers respectively.
Labour Consulting
- Do you have a nominated and viable Forum – are they representative?
– Trade Unions
– Black employees (African, Colored and Indian)
– Female Employees
– Employees with disabilities
– White Male
– EE Manager (Senior Manager)
– Foreign National
– All occupational levels
- Do they meet regularly?
- Do they consult on the points required in the EE Act – see below
- Do they consult on implementation and monitoring of the EE Plan;
- Did they consult on the Report before it was submitted to the Department of Labour?
Formulating EE Forum Committee (including appointments, scheduling meetings and minutes
of meetings.
Employment Equity Plan
- Do you have an Employment Equity Plan?
- Does it comply with section 20 of the EEA?
- Do you have an updated workforce profile?
- Did all the employees complete an EEA 1 Form?
- Have you done an analysis of the degree of under-representation in the workplace by:
a. Conducting a quantitative workforce profile analysis
b. Identifying the skills gap
c. Involving all members of management (Are the implementations of affirmative
action measures and attainment of numerical goals incorporated into the
performance management indicators of the managers?)
- Does your Employment Equity Plan include an Affirmative Action Plan?
- Compliance with new Sector Numerical Targets and Numerical Goals to be implemented by
the DoL by 2021.
Affirmative Action Plan
Includes: Diversity measures; skills and training plans; employee development and training;
retention measures and elimination of barriers;
Broad-Based Black Economic Empowerment (B-BBEE)
Introduction
Broad-based black economic empowerment (B-BBEE) is a government initiative to promote
economic transformation in order to enable meaningful participation in the economy by black
people.
In pursuing the overall equality objective and thereby the achievement of broad-based black
economic empowerment in South Africa, government has developed the following documents to
give an impetus to empowerment initiatives:
– The Strategy for Broad-Based Black Economic Empowerment in March 2003;
– The Broad-Based Black Economic Empowerment Act 2003 (Act No. 53 of 2003) which
was passed into law on 6 January 2004;
– The Codes of Good Practice dated 9 February 2007; and
– Amended Codes of Good Practice dated 11 October 2013;
Understanding of the Assignment
- Preparation of a simulated scorecard based on the latest Annual Financial Statements;
- Report and findings of the potential score and applicable B-BBEE level should a
verification have been performed;
- Provide recommendations and strategies for the next financial period;
- Monthly meetings to measure achievement against the goals and targets;
- File preparation – assist with the preparation of the B-BBEE verification file;
- Verification services – assist with the appointment of a verification agency;
- Project management – liaise with the appointed independent accredited agency to provide
verification service. This will involve liaising with the verification agency to ensure that all
recommended issues will be taken into account for purposes of verifying. Project manage
the entire verification process in order to ensure peace-of-mind that the assignment will be
completed timeously and to meet the expectations;