Are you ready for your Employment Equity Submissions?

Posted by Transcend
Wednesday, 30 November 2016  |  Comments

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Are you ready for your Employment Equity (EE) Submissions?

The 15th of January is the deadline for EE submissions to the Department of Labour!

All employers must eliminate discrimination, but only designated employers must implement affirmative action measures for designated groups.

Are you a Designated Employer as per the EE Act?

Designated employers are employers with 50 or more workers, and/or whose annual turnover is more than the amount specified in Schedule 4 of the EE amendment Act.

Schedule 4 table:


Total Annual Turnover


R 6 million

Mining and Quarrying

R 22.50 million


R 30 million

Electricity, Gas and Water

R 30 million


R 15 million

Retail and Motor Trade and Repair Services

R 45 million

Wholesale Trade, Commercial Agents and Allied Services

R 75 million

Catering, Accommodation and other Trade

R 15 million

Transport, Storage and Communications

R 30 million

Finance and Business Services

R 30 million

Community, Special and Personal Services

R 15 million

Also municipalities, organs of State, employers ordered to comply by a bargaining council agreement, any employers who volunteer to comply.

In order to comply by implementing affirmative action measures, a designated employer must:
• Consult with employees;
• Conduct an analysis;
• Prepare an EE plan;
• Report to the Director-General (Labour Department) on progress made;
• Inform

Transcend Corporate Advisors can assist you in the following ways:

  • EE committee formation (including the appointment of an EE manager);
  • Consulting with and training of the EE committee;
  • Workplace analysis (analysis of demographics, occupational levels, policies, procedures, practises and work environment);
  • Identification of barriers and underrepresentation of designated groups;
  • Preparing and formulating EE Plan and succession plans;
  • Monitoring and evaluation of implementation of EE Plan;
  • Reporting to the Department of Labour;

Designated employers will face fines for the contravention and/or non-compliance of above.

Maximum permissible fines for non-compliance:

Previous Contravention

Contravention of sections 16, 19, 22, 24 -26, 43(2)

Contravention of sections 20, 21, 23,44(b)

No previous contravention

R 1 500 000

The greater of R 1 500 000 or 2% of turnover

Previous contravention in respect of same provision

R 1 800 000

The greater of R 1 800 00 or 4% of turnover

Previous contravention within the previous 12 months or 2 previous contraventions of the same provision within 3 years

R 2 100 000

The greater of R 2 100 000 or 6% of turnover

3 previous contraventions in respect of the same provision within 3 years

R 2 400 000

The greater of R 2 400 000 or 8% of turnover

4 previous contraventions in respect of same provision within 3 years

R 2 700 000

The greater of R 2 700 000 or 10% of turnover


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