Report submissions for employment equity (EE) numbers is officially open and will run until 15 January 2020. Failure to comply with the deadline will result in fines ranging from 2%-10% of a company’s turnover.
The submission is mandatory for relevant companies who have a headcount of 50 or more employees, as well as those companies with a turnover above the required threshold, which will vary across industries.
Employment Equity reporting aligns with Section 21 of the EE Act and reflects a company’s progress in terms of achieving transformation targets by empowering a workforce.
Often referred to as ‘indirect empowerment’, the purpose of the Employment Equity Act 55 of 1998, is to achieve reasonable progress towards equity in the workplace. It ensures inclusivity in the workplace and equal opportunities.
“EE forms a vital part of your BBBEE scorecard as it places focus on previously disadvantaged individuals by aiming to eradicate discrimination on all fronts,” responds Summit Compliance Manager, Anthea Kallis.
Furthermore, EE forms part of Management Control on the BBBEE scorecard which accounts for 17% (or 19 points) of the scorecard. From its inception, government has been clear on the mandate for transformation and the subsequent implementation of an EE strategy is a long-term commitment by the private sector towards transformation.
There is no room to move when it pertains to non-compliance – with the Department of Labour amplifying efforts to reduce it. Therefore, more enquiries and audits are occurring now more than ever before and this trend will continue well into 2020.
“Whilst there isn’t a rigid framework which companies need to adhere to, it is encouraged to form EE committees that design and implement a plan based on the needs of the company,” says Kallis.
In addition, it is concluded that the EE committee should align closely to a trusted external advisor to ensure 100% compliance. Failure is simply not an option and by partnering with an industry leader like Summit, you receive trusted advice and reap the benefits of a well-executed EE plan.
Contact us today to assist you.
Tel: 031 536 6650