25 July 2024
A designated employer could face the risk of fines should they be found non-compliant with the Employment Equity Act 55 provisions of 1998. The Act defines a designated employer as any employer who employs more than 50 employees or who employs less than 50 employees but exceeds the industry thresholds as detailed below:
SCHEDULE 4
TURNOVER THRESHOLD APPLICABLE TO DESIGNATED EMPLOYERS
| Sector or subsectors in accordance with the Standard Industrial Classification | Total annual turnover |
| Agriculture | R6.00m |
| Mining and Quarrying | R22.50m |
| Manufacturing | R30,00m |
| Electricity, Gas and Water | R30,00m |
| Construction | R15,00m |
| Retail and Motor Trade and Repair Services | R45,00m |
| Wholesale Trade, Commercial Agents and Allied Services | R75,00m |
| Catering, Accommodation and other Trade | R15,00m |
| Transport, Storage and Communications | R30,00m |
| Finance and Business Services | R30,00m |
| Community, Social and Personal Services | R15,00m |
Chapter 3 of the Act lists the duties and responsibilities of a designated employer. One key aspect is submitting an annual employment equity report. The act outlines duties and responsibilities that must be met before a designated employer can be considered a complainant.
Before submitting the annual employment equity reports, a designated employer must first ensure it meets the following criteria:
Assign responsibility for the process to a senior manager.
Establish an employment equity committee that needs to meet at least once quarterly.
Conduct an analysis and identify barriers to employment equity.
Prepare an employment equity plan in which a designated employer outlines strategies and measures to address identified barriers and promote diversity.
Submit annual employment equity reports to the Department of Employment and Labour detailing the progress made in implementing the employment equity plan.
Non-compliance with the Employment Equity Act could lead to the following consequences:
Non-compliant employers can face a fine ranging from R1.5 million to 10% of the employer’s annual turnover.
Non-compliant employers can also find themselves in costly litigation due to fines issued by the Labour Court, which result in astronomical legal fees.
The system for employment equity submissions will be open from September 1st to January 15th, 2024.
Contact Invictus for guidance and assistance to ensure you meet all the EE requirements before submitting your annual EE reports.
Get in touch with our office at 086 173 7263 or email us at admin@invictusgroup.co.za
