Summary of the Employment Equity Act gazetted on the 1st of August 2014

Posted by Transcend
Wednesday, 13 August 2014  |  Comments

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  1. Previously beneficiaries of affirmative action were Black people ( blacks, coloureds and Indians) women and disabled people. The Act states that people who benefit from affirmative action will only be people who were citizens of South Africa before 1994. This means that the employment of persons who are foreign nationals, or who have become citizens after April 1994, cannot assist employers to meet their affirmative action targets. But this means that meeting EEA2 targets will directly affect BBBEE employment equity scores
  2. The employment Equity Act of 1998 gave employers the opportunity to try and reduce income differential gaps amongst employees. Going forward the EE act states that they will regulate instances where different conditions are applied to different employees who do the same work (or work of equal value). Unless the employer can show that the differences in salaries or other conditions of employment are based on experience or skills. This will otherwise be deemed unfair discrimination. They may also issue regulations setting out criteria for assessing work of equal value.
  3. Previously employers might have been asked to pay fines by the Labour inspector if the employer did not comply. The act states that with regard to affirmative action, the Labour Department will have increased powers to fine companies who do not comply with their employment equity obligations. The fines will be ranging from R1.5 million or 2% of the employer’s turnover to a maximum of R2.7 million or 10% of the employer’s turnover.
  4. A designated Employer must report annually on the first working day of October for manual submissions and by the 15th of January for electronic submissions
  5. Employers with more than 150 employees should use the national EAP targets for the upper three level i.e. top management, senior management and middle management. They must use the regional EAP targets for the lower levels i.e. junior management, semi-skilled and unskilled. Where employers with less than 150 employees should use the national EAP targets for the upper two levels i.e. top management and senior management. They should use regional EAP targets for the lower levels i.e. middle management, junior management, semi-skilled and unskilled.
  6. Employees earning less than R205 433.30 a year may also refer discrimination disputes to the CCMA.
  7. Employees may now refer to the CCMA for sexual harassment related disputes

For more information or to attend our 1 day session on the EE act changes email brian@transcend.co.za or register here for the course

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