Employment Equity

• Fines will be imposed as a % of the annual turnover of the company on non-complying employers.
• The bill seeks to change this to 2% of annual turnover.
• The maximum fine for those guilty of “four previous contraventions in respect of the same provisions within three years” becomes 10% of annual turnover.

 
On 20 December 2010, the Department of Labour published a bill which proposed certain amendments to the Employment Equity Act. Some of these proposed amendments have caused great concern for business owners and their ability to run their businesses effectively with the right people being employed. These amendments have not yet been promulgated but, with less than 5 months to go until the Employment Equity Submission deadline, it is important to ensure that you understand how these amendments can affect your Employment Equity reporting as well as your business in the event that they are promulgated.

There’ve been a number of minor and major amendments and we’ll be highlighting the more pertinent proposals:

1. Definition of South African Citizens: The definition of designated groups has been expanded to state that designated groups are black people, women and people with disabilities who are citizens of RSA by birth or descent.
2. Equal pay for work of equal value: This new clause attempts to which seeks to stop abusive practices by ensuring that employees who work for the same employer receive the same pay as other employees doing the same or substantially the same work. Any difference in terms and conditions of employment between employees of the same employer performing same or substantially the same work or work of equal value is a form of unfair discrimination. Designated employers are now also required to take steps to progressively reduce income differentials.
3. Amendments to the fines for contravention: Amendments have been proposed which empower the Director General to impose fines as a percentage of the annual turnover of the company on non-complying employers who fail to prepare and implement an employment equity plan. The bill seeks to change this to 2% of annual turnover, while the maximum fine for those guilty of “four previous contraventions in respect of the same provisions within three years” becomes 10% of annual turnover. 4. Definition of Independent Contractor: A definition of an independent contract has been included due to the confusion in the past.

 
If you would like more information on these proposed amendments and/or assistance in ensuring you are Employment Equity compliant, please contact Nicky: [email protected].