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Turning Strategy into Action: How Employment Equity Plans Can Help!

Designated companies are required by law to design and implement an Employment Equity plan and report on its progress annually. Below we answer some important questions about Employment Equity and show you how you can use your Employment Equity plan to your advantage.

WHY IS EMPLOYMENT EQUITY IMPORTANT?

The Employment Equity Act is the law that protects from unfair treatment and any form of discrimination in the workplace.

Designated companies are required by law to have a representation of race groups and genders according to national and/or regional EAP targets in every level of their organisation, earning equal incomes.

Designated companies are required to submit a plan of action to the Department of Labour showing how they will achieve this. This is called your Employment Equity Plan, which is required to span over a minimum of one year or a maximum of five years. Each year the company will be required to report the progress in achieving the goals set out in the plan. There is no rigid format for an Employment Equity plan, but we have included the Department of Labour's Template for an Employment Equity plan to help guide you through this process.

WHEN ARE THE REPORTING DEADLINES?

Reporting deadlines are the 30th of October if you are manually submitting your report or the 15th of January if you are doing an online submission.

WHO NEEDS TO COMPLY?

All employers who employ more than 50 employees must submit a report. If you employ less than 50 employees but have an annual turnover in line with your industry’s thresholds, you are also required to submit a report.

WHAT ARE THE PENALITIES FOR NON-COMPLIANCE?

Non-compliance of this nature attracts the more eye-watering fines, between R1.5 million or 2% of annual turnover and R2.7 million or 10% of annual turnover, whichever is the greater. The value of the fine is dependent on whether employers have had any similar contraventions in previous years.

HOW CAN WE HELP?

iLearn has created a FREE Succession Planning Toolkit to help you easily and effectively meet the Department of Labour's compliance targets ahead of the submission deadlines.

We are also able to assist you with a Leadership Development strategy that will not only ensure that the Department of Labour is fully satisfied with your transformation initiatives, but will also set up your organisation's leaders for success.

NEXT RELEASE...

Continue to watch this space! We will be releasing our B-BBEE issue shortly. In this next issue, we will explain all you need to know about B-BBEE and how this is linked to all the other elements in our Skills Development Game Plan. We will also showcase how a skills development solution can enable you to claim up to 47 points across all the elements in your B-BBEE scorecard, whilst contributing to the economy and society at large.

At any time during this series, we invite you to connect with us and Book A Free Consultation. Just complete the form attached and we will be in touch promptly.

SKILLS DEVELOPMENT GAME PLAN
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