EMPLOYMENT EQUITY: Will your company survive the Department of Labour Audit?

Do you know that if your company employs 50+ employees and doesn’t implement Employment Equity responsibly, you can be fined:
  • R500 000 for a first offense, increasing by an additional R100 000 for each successive non-compliance, up to a total of R900 000
  • Fines of between 2% and 10% of annual turnover might be imposed

What does the Department of Labour require in terms of Employment Equity Compliance?

Step 1: Appoint an EE Manager and form a Committee of staff

Step 2: Educate and train staff

Step 3: Develop an EE Plan; Conduct a workplace analysis with Income Differential Statements

Step 4: Submit an annual EE report to the Department of Labour – signed off by the EE Manager and the CEO

If the Department of Labour inspects your company, you will need to show the Inspector the following things:

An Employment Equity File, containing:

  • Your company’s current EE Plan, signed by CEO
  • Copies of previous plans
  • Records showing how plan has been communicated
  • Evidence of Employment Equity Committee nominations and acceptance and the process followed
  • Evidence of the appointment of an EE Manager with a signed letter of responsibility
  • List of EE Committee members
  • Employment Equity Committee’s Constitution with a code of conduct, signed by all members
  • Minutes of EE Meetings
  • EE related complaints and records of actions taken
  • Qualitative analysis of the workforce
  • Workplace Profile and numerical targets, as well as previous Reports
  • Latest Workplace Skills Plan and Training Report

The Department of Labour Inspectors can also interview Committee members and ask them to explain the Committee’s role!

Are you ready for this?

If you need help, contact us! We specialise in Employment Equity Consulting;  Employment Equity Training, and have been assisting companies with practical tools in Employment Equity for 12 years, and we have the most up-to-date Employment Equity toolkits for Committees and Transformation Forums. Employment Equity Committee Training

WE CAN ALSO PROVIDE YOUR COMPANY WITH A PRACTICAL AND ENTERTAINING VIDEO FOR TRAINING AND COMMUNICATING EMPLOYMENT EQUITY TO STAFF. THIS VIDEO IS UP-TO-DATE, SOUTH AFRICAN IN CONTEXT, AND ILLUSTRATES REAL–LIFE SCENARIOS AND TYPICAL DIVERSITY PROBLEMS THAT SOUTH AFRICAN BUSINESSES EXPERIENCE
Click here to view more about this video:
Employment Equity DVD

Print Friendly