Employment Equity

Based on Section 20 of the Employment Equity Act 55 of 1998 (EEA), employers with 50 or more employees or whose annual income is more than the amount specified in Schedule 4 of the Act, must prepare and implement an Employment Equity Plan which will help to reach employment equity in their workplace.


Total annual turnover

Agriculture R2.00m
Mining and quarrying R7.50m
Manufacturing R10.00m
Electricity, gas and water R10.00m
Construction R5.00m
Retail and motor trade and repair services R15.00m
Wholesale trade, commercial agents and Allied services R25.00m
Catering, accommodation and other trade R5.00m
Transport, storage and communications R10.00m
Finance and business services R10.00m
Community, social and personal services R5.00m

The purpose of the EEA is to achieve workplace equity.

It endeavours to so in two ways:

  1. The elimination of discrimination in the workplace
  2. Redressing employment situations due to historical reasons which affected “designated groups” and in the process ensure their equitable inclusion in all levels and categories in the workplace

Failure to comply with the provisions of the EEA will result in the Department of Labour issuing compliance orders, and should non compliance persists, the Labour Court will be approached to enforce such compliance orders. The Labour Court is further entitled to issue financial penalties for such non-compliance, ranging from R100 000.00 up to R900 000.00 for repeated non compliance.

Before such a plan can be developed and implemented, all stakeholders needs to be involved by electing an Employment Equity Committee that will represent all levels of the Company as well as race and sex. This Committee needs to be trained and only thereafter may the Employment Equity Plan be developed. It is important to note that the Employment Equity Act stipulates that every forum member should receive training in this regards.equity-img

As mentioned above, the proposed employment equity training will include a broad overview on the duties and responsibilities of an Employment Equity Forum member, the content of the Employment Equity Act and the interpretation and implementation of such.

Start your Employment Equity process now to ensure that you meet the Department of Labour’s deadline of 1 October. Ideally you can combine your skills development and employment equity processes and form one committee that deals exclusively with skills development and employment equity.

K&S Consultants provide a number of services regarding Employment Equity which includes the following:

  • Facilitation of the election and selection of Employment Equity Committee members
  • Training the Employment Equity Forum/Committee members on the requirements of the Employment Equity Act and their role as committee members
  • Chairing of the first two Employment Equity meetings to ensure efficiency
  • Providing guidance regarding the identification of any discrimination in the company’s practices or policies and procedures
  • Providing guidance in regard to setting targets and methods. • Employment Equity Surveys (Afrikaans and English) to provide a baseline for the Employment Equity Plan and ensure consultation with employees
  • Development of the company’s Employment Equity Plan
  • Distribution methods of the Employment Equity Plan and communication to all employees
  • Conducting a workplace analysis
  • Development of the EEA2 (Employment Equity Report) and EEA4 (Income Differentials)

Contact This e-mail address is being protected from spambots. You need JavaScript enabled to view it or 044-382-4551 for professional Employment Equity services at a very competitive rate.