Employment equity is a legislative requirement for all companies deemed to be designated employers. Two of the main requirements to determine if you’re a designated employer include:
- A company which employs 50 or more employees (this includes temporary/fixed term contracts)
- A person who employs fewer than 50 employees but has a total turnover that is equal to or above the applicable annual turnover of a small business in terms of Schedule 4 of this Act. See below:
| Sector | Turnover |
| Agriculture | R 6,00 m |
| Mining and quarrying | R 22,50 m |
| Manufacturing | R 30,00 m |
| Electricity, gas and water | R 30,00 m |
| Construction | R 15,00 m |
| Retail and motor trade and repair services | R 45,00 m |
| Wholesale trade, commercial agents and allied | R 75,00 m |
| Catering, accommodation and other trade services | R 15,00 m |
| Transport, storage and communications | R 30,00 m |
| Finance and business services | R 30,00 m |
| Community, social and personal services | R 15,00 m |
Designated employers are required to comply with the following in terms of the Employment Equity Act:
- Assign a senior manager
- Establish a consultative forum
- Prepare an EE analysis
- Prepare and implement an employment equity plan
- Submit EE reports and income differential statements electronically from the 15th September 2022
Failure to comply could result in a fine of R1,5 million or 2% of your turnover.
Please feel free to make use of the HRTorQue Outsourcing Employment Equity Compliance Checklist. This is not a Department of Labour audit, but will assist you in quickly identifying possible areas of concern where you may not be compliant in line with the Employment Equity Act.
If you’re uncertain about your overall compliance, please reach out to one of our employment equity specialists for a consult on [email protected]. We’re here to help you in whatever way we can!