The purpose of the Employment Equity Act, no 55 of 1998 is to achieve equity in the workplace, by
- promoting equal opportunity and fair treatment in employment through elimination of unfair discrimination and,
- implementing affirmative action measures to redress the disadvantages in employment experienced by designated groups, in order to ensure equitable representation in all occupational categories and levels in the workforce.
All designated employers must submit their annual employment equity report. A designated employer is defined as:
- An employer who employs more than 50 people,
- An employer who employs less than 50 people but has an annual turnover that is equal or above in terms of Schedule 4 of the Act, namely:
| Sector | Total annual turnover |
| Agriculture | R6.0m |
| 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, Special and Personal Services | R15,00m |
A designated employer must prepare and implement a plan to achieve employment equity, which must:
- have objectives for each year of the plan,
- include affirmative action measures,
- have numerical goals for achieving equitable representation,
- have a timetable for each year,
- have internal monitoring and evaluation procedures, including internal dispute resolution mechanisms, and
- identify persons, including senior managers, to monitor and implement the plan.
The electronic submission of the employment equity report is open from 1 October 2020 until 15 January 2021. Employers can register on the EE System on https://ee.labour.gov.za/ to submit the annual Employment Equity Report online.
Non-compliance to the EE Act may attract a fine of R1.5 million or 10% of the employer’s annual turnover (whichever is the greatest); and/or 10 years imprisonment.
At FHBC we can assist to adhere to all Employment Equity requirements. If your company utilises the SAGE program for payroll processing, the process can be less time consuming due to the system having a lot of the required information available already.
If you need any assistance, please contact Anél Crous at anelv@fhbc.co.za
Source Reference:
Employment Equity Act, no 55 of 1998