THE IMPORTANCE OF EMPLOYMENT EQUITY COMPLIANCE

MBA News

By Dr. Prishana Datadin | Human Resources Manager, MBA KZN

The Employment Equity (EE) Act is a law that promotes equal opportunity and fair treatment in employment through the elimination of unfair discrimination. It also ensures that affirmative action is implemented and measured in order to redress the disadvantages in employment experienced by designated groups and to ensure that equitable representation is made in all occupational levels of the workforce.

Organisations that employ more than 50 employees and/or that have an annual turnover greater than the threshold specific to the industry/sector are required to submit annual Employment Equity (EE) Reports. These reports include the EEA2 and EEA4. Organisations are further required to develop and implement EE plans in which numerical goals and sector targets must be set out. Non-compliance results in heavy fines.

A designated employer must prepare and implement an EE plan to achieve employment equity, which must:

  • Contain objectives for each year of the plan.
  • Include affirmative action measures.
  • Stipulate numerical goals for achieving equitable representation.
  • Specify numerical targets for each year of the plan.
  • Include a timetable for each year.
  • Incorporate internal monitoring and evaluation procedures, including internal dispute resolution mechanisms.
  • Identify persons, including senior managers, to monitor and implement the plan.

The benefits of Employment Equity planning include:

  • Assisting the entity with succession planning.
  • Assisting the entity to plan a more representative staff complement.
  • Legislative compliance forecasts and meeting targets.

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