The basics of Employment Equity

The basics of Employment Equity

Last week we published An Introduction to Employment Equity in which we shared information about who is legally obliged to comply with the requirements of the Employment Equity (EE) Act. We also indicated that the reporting window opens on 1 September and a deadline of 15 January 2022.

Today we list some of the more practical steps an organisation needs to follow.

EE Committee

In terms of the Employment Equity Act, all employers with over 50 employees or a turnover which is over the relevant industry threshold must establish an Employment Equity Committee.

The main role of this committee is to ensure that the organisation meets its Employment Equity requirements by drafting the organisation’s EE plan and ensuring its effective implementation which is aligned with the strategic objectives of the business.

Committee Constituency

Gone are the days of just getting the old boy’s club to run the committee. You have to take reasonable steps to consult with representatives of employees representing the diverse interests of the total workforce from senior management to unskilled workers. The committee should also be representative in terms of gender and race.

Form EEA2 – Report to the Director-General

This report consists of 11 different sets of data, including:

  • details of the total number of employees in each of the occupational levels, and details of the number of employees with disabilities in each
  • total number of new recruits, including people with disabilities
  • the total number of promotions into each occupational level, including people with disabilities
  • total number of terminations in each occupational level, including people with disabilities
  • numerical goals as contained in the EE Plan i.e. the entire workforce profile including people with disabilities you project to achieve at the end of your current Employment Equity Plan.
  • stakeholders that were involved in the consultation process when developing and implementing your Employment Equity Plan and the preparation of the Employment Equity Report
  • Barriers and affirmative action measures identified
  • Monitoring and evaluation of implementation

Form EEA4 – Remuneration

The objective of this form is to collect information for the assessment of the remuneration gap between the highest paid and lowest paid employees and, at the same time, to assess inequalities in remuneration in relation to race and gender in the various occupational levels.  It must be noted that the total number of employees in the EEA2 in each occupational level must be taken into account when completing this form.

Form EEA 13 aligning EE to strategic objectives of the organisation

Designated employers are required to prepare and implement an Employment Equity Plan which will achieve reasonable progress towards employment equity in the workforce.

This information should state, amongst others:

  • The objectives to be achieved for each year of the plan
  • The affirmative action measures to be implemented as required by section 15(2)
  • Where under representation of people from designated groups has been identified by the analysis, the numerical goals to achieve the equitable representation of suitably qualified people from designated groups within each occupational level in the workforce, the timetable within which this is to be achieved, and the strategies intended to achieve those goals
  • The timetable for each year of the plan for the achievement of goals and objectives other than numerical goals
  • The duration of the plan, this may not be shorter than one year or longer than five years
  • The procedures that will be used to monitor and evaluate the implementation of the plan and whether reasonable progress is being made towards implementing employment equity
  • The internal procedures to resolve any dispute about the interpretation or implementation of the plan
  • The persons in the workforce, including senior managers, responsible for monitoring and implementing the plan

No doubt, a formidable mountain to climb, and one possibly not to try on your own for the first time. If you, or your clients, need advice and assistance, please send us an email, or visit our Workforce Solutions website.

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