Page 4 - JCCI Business Focus Vol.1.3

EMPLOYMENT EQUITY AUDITS AND COMPLIANCE

Nikita Pillay, HR & employment equity plans to see if
IR Consultant, DRG they comply with legislation.
Outsourcing
Labour Minister Mildred
Oliphant stated, “It is very
o you concerning that there are just
have too many JSE listed companies
D50 that are completely ignoring
or more (employment equity law).”
employees She added that 21 JSE-listed
in your companies had been fined for
company? non-compliance, while “several
Or is your others” would follow.
company’s
annual In terms of Section 20(7),
turnover higher than Schedule the Director-General may
4 of the Employment Equity apply to the Labour Court to
Act? If so, then you’re labelled impose a fine in accordance
a ‘designated employer’. And with Schedule 1 if a designated
with that label comes a lot of employer fails to prepare or
legal responsibilities, the most implement an employment
important of which is to comply equity plan in terms of this
fully with the Employment section. For a first-time offence,
Equity Act. If you don’t comply an employer will be subject to a
with it completely, then you’ll face fine, the greater of R1 500 000 or
heavy non-compliance penalties, 2% of the employer’s turnover.
alongside costly legal procedures If the employer has contravened
for you and your business. So, the provision once before the
the message is clear: You have to fine shall be the greater of
comply with the Employment R1 800 000 or 4% of the disabilities”) in order to achieve d.) Implement its employment The Department of Labour
Equity Act! employer’s turnover. The fine equality in the workplace. equity plan Inspectors can also interview
increases depending on the
Recent reports from The repetition of the contravention. Steps ensuring Employment e.) Submit an annual report as committee members and ask
Department of Labour’s In addition, companies that Equity (EE) Compliance required by section 21 them to explain the committee’s
Inspection and Enforcement falsely reported on employment f.) Publish its report as required role.
Services (IES) branch announced equity plans, while not having Step 1: Appoint an EE Manager by section 22
that it is taking six companies to such plans in place, will be and form an EE committee g.) Prepare a successive Annual Reporting 2016/2017
court for prosecution for failure criminally prosecuted. Step 2: Educate and train staff on employment equity plan as The Department of Labour
to prepare employment equity their role and responsibility as required by section 23 online reporting portal opens on
plans as per the provisions of Section 20(1) of the committee members h.) Assign responsibility to one the 1st October 2017, and closes
Section 20 (1) of the (EEA) and Employment Equity Act requires or more senior managers as on the 15th January 2018.
reporting to the Director-General a designated employer to prepare Step 3: Conduct a workplace required by section 24
on plans that do not exist which an employment equity plan analysis with Income Differential i.) Inform its employees as The Department of Labour
amounts to misrepresentation. that will achieve reasonable Statements required by section 25 head office will schedule
The six companies affected progress towards employment national advocacy events during
are Gooderson, Clientele equity in that employer’s Step 4: Conduct an internal audit j.) Keep records as required by September every year to coincide
Legal, Clientele Life, Mazor workforce. This employment on the barriers and affirmative section 26 with the commencement of the
Aluminium, Mazor Steel, and equity plan must include: the action If the Department of Labour report date of 1 October.
Spanjaard Limited. affirmative action measures to inspects your company, you Employment equity
be implemented, the procedures Step 5: Discuss and plan goals
The Department of Labour used to monitor and evaluate the and targets for the next five years will need to show the inspector announcements in the press
also recently reported that 72 implementation of the plan, the an Employment Equity file, will aim to raise awareness
JSE-listed companies are being timetable setting out the plan, Step 6: Develop an EE Plan in containing: and thus ensuring high levels
relation to compliance if there is a
inspected for employment equity objectives, duration, procedures deviation from the norm ■ Your company’s current EE of compliance. There will
compliance. The initiative, and internal management of Plan, signed by CEO also be national events to
undertaken by the Department’s disputes regarding the plan Step 7: Structure the EE Plan to coincide with the launch of
IES branch, started with the and the numerical goals to be accommodate for the goals and ■ Copies of previous plans new regulations, codes of good
inspections in July 2017 that will achieved of the appointment targets to be reached ■ Records showing how plan has practice, the public registry and
continue until December 2017. of underrepresented persons been communicated reports by the Commission for
The inspection process entails from designated groups (“black Step 8: Engage in a meaningful ■ Evidence of EE committee employment equity. 
“interrogating” companies’ people, women and people with consultation process with the nominations, acceptance and
committee to ensure agree the process followed Nikita Pillay is employed at DRG

Step 9: Verify and document ■ Evidence of the appointment as a Human Resource Generalist,
statistics for reporting of an EE manager with a accompanied by experience in Industrial
signed letter of responsibility Relations. Her key focus is Labour Law
Step 10: Submit an annual EE ■ List of EE committee members compliance, and providing advice and
report to the Department of ■ EE committee’s constitution guidance in this respect.
Labour – signed off by the EE with a code of conduct, signed
manager and the CEO by all members DRG Outsourcing (Pty) Ltd

Important Sections of ■ Minutes of EE meetings Nikita@drg.co.za
www.drg.co.za
Compliance ■ EE related complaints and
records of actions taken
a.) Consult with employees as
required by section 16 ■ Qualitative analysis of the
b.) an analysis as required by workforce
section 19 ■ Workplace profile and
c.) Prepare an employment numerical goals and targets, as
well as previous reports
equity plan as required by
section 20 ■ Latest Workplace Skills Plan
and Training Report

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